PRESENTATION TO THE PORTFOLIO COMMITTEE ON TRANSPORT

27 FEBRUARY 2008

CROSS- BORDER ROAD TRANSPORT AMENDMENT

BILL, 2007

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Department

of Transport

The Cross-Border Road Transport Act No. 4 of 1998 came into force on 1 April 1998

The Act create the Cross-Border Road Transport Agency and gives effect to various International Agreements and regulates cross-border road transport

After implementation of the Act, some issues that required some amendments aroused.

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BACKROUND

BACKROUND TO AGREEMENTSDepartment

of Transport

Cross-border road transport must be regulated differently because of international Agreements

The following agreements exist:– The MOU with Botswana, Lesotho, Namibia and

Swaziland– Bilateral agreements with Malawi, Mozambique,

Zimbabwe and Zambia

The Agreements are attached to the Transport Deregulation Act, 1988, and remain in force under the Cross-Border Act

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Department

of Transport

BACKGROUND TO BACKGROUND TO AGREEMENTS (CONT.)AGREEMENTS (CONT.)

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The Agreements usually have quotas, i.e. states must equalize the no. of operators

Joint Route Management Committees and similar structures are established

Different considerations apply than with domestic transport under the NLTTA

The Agency must apply the Act and the relevant Agreement(s)

Department

of Transport

OBJECTS OF THE BILL

To amend the Cross Border Road Transport Act No. 4 of 1998 so as to insert the table of contents.

To amend and insert certain definitions.

To authorize the Cross Border Road Transport Agency to levy and collect tolls on behalf of SANRAL.

To simplify the procedure for the appointments of the Board Members.

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Department

of TransportOBJECTS OF THE BILL (CONT)

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To regulate the granting of Cross Border permits.

To update reference to traffic legislation.

To create certain offences.

To amend certain provisions of the NLTTA, 2000. (Act No. 22 of 2000)

To provide for matters connected thereto.

Department

of Transport

Table of contents inserted to facilitate reading the ActDef Of “Cabotage”

– “or” changed to “and” to make it clear that it refers to both on- and offloading

Def of “cross-border road transport”– Add “and personal effects” to stop loading

of freight– Cover persons carried in course of

business: operators evade the Act by saying they are carrying workers

SECTION 1 (DEFINITIONS)SECTION 1 (DEFINITIONS)

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Department

of Transport SECTION 1 SECTION 1 (DEFINITIONS CONT…)(DEFINITIONS CONT…)

Def of “foreign carrier”

–Add cabotage to close the technical loophole that arose in the Airey High Court case

Def of “permit”

–Maximum validity period changed to 5 years, from 3 months, 6 months or 1 year

–To be in line with NLTTA

–Admin costs too high for short period permits 8

Department

of Transport SECTION 1 (DEFINITIONS SECTION 1 (DEFINITIONS CONT…)CONT…)

Def of “reward”

–Add non-monetary reward to close gap for hiring schemes etc.

Def of “unauthorized transport”

–Technical change to simplify Act

Def of “vehicle”

–To make it clearer that the 3500 kg limit applies to the whole combination of vehicles and not only the truck tractor

–To make it clearer that for cabotage a single permit is needed for each component of a vehicle combination 9

Department

of Transport

SECTION 4 – POWER TO SECTION 4 – POWER TO COLLECT TOLLSCOLLECT TOLLS

Other SADC states have cross-border road user charges

SA operators complain that “playing fields are not level”

Engagement with SANRAL: possibility to declare roads near borders as toll roads

CBRTA will be empowered to collect toll as agent of SANRAL as a road user charge

The power will only be used if the Minister approves and SANRAL agrees

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Department

of TransportSECTION 23 & 25 - CABOTAGESECTION 23 & 25 - CABOTAGE

Act not clear enough on the cabotage issue

Cabotage is where a foreign carrier:

–Operates inside South Africa, or

–Picks up in SA to go to a 3 rd country

Amendment makes it clear that:

–the Agency regulates cabotage and

–a permit is required for cabotage

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SECTION 27 – FACTORS TO SECTION 27 – FACTORS TO CONSIDER IN ISSUING CONSIDER IN ISSUING

PERMITSPERMITSDepartment

of Transport

Transfers not necessary: the new operator can just as well apply for a new permit

Will stop “consultants” from peddling permits

Tax clearance required as with NLTTA (the Agency is in discussion with SARS on this issue)

Conditions imposed by a Joint Committee to be considered (to bring Act in line with agreements)

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Department

of Transport

Board must take BEE & SMME considerations into account: brings Act into line with BBBEE Act etc.

Combination of vehicles: a single permit is issued for vehicle combinations for C-B transport, but not for cabotage (see def of “vehicle”)

SECTION 27 – FACTORS TO SECTION 27 – FACTORS TO CONSIDER CONSIDER

IN ISSUING PERMITS (CONT.)IN ISSUING PERMITS (CONT.)

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Department

of Transport

SECTION 28 – FACTORS TO SECTION 28 – FACTORS TO CONSIDER IN ISSUING CONSIDER IN ISSUING

PERMITS (PASSENGERS)PERMITS (PASSENGERS)

Consequential amendments to effect the same amendments as to s.27

The factor “ability of the applicant” amended to make it clearer and remove arguments

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Department

of Transport

SECTION 30 – WITHDRAWAL SECTION 30 – WITHDRAWAL & SUSPENSION OF PERMITS& SUSPENSION OF PERMITS

Act amended to allow withdrawal or suspension for non-compliance with permit conditions: to bring in line with NLTTA and provincial legislation

Notifying holder of right of appeal: amendment suggested by State Law Adviser to comply with Promotion of Administrative Justice Act, 2000

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Department

of Transport

Subsection (1) amended to promote clarity

Cabotage permits may only be issued if there is no conflict with ITPs and other transport plans done under the NLTTA

Amendment to make it clear that a separate permit is required for each vehicle component (see above)

SECTION 31 - CABOTAGESECTION 31 - CABOTAGE

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Department

of Transport

SECTION 32 – DELEGATION TO SECTION 32 – DELEGATION TO CEO TO ISSUE PERMITSCEO TO ISSUE PERMITS

The Act is illogical in not extending delegation to the CEO for temporary cabotage permits

Consequential amendment to extend this power to permits for carrying workers (see def of “cross-border road transport”)

Permits issued by the CEO must be ratified by the Board

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Department

of Transport

SECTION 33 – PUBLICATION OF SECTION 33 – PUBLICATION OF APPLICATIONSAPPLICATIONS

It is a waste of time and money to publish all renewals in the Govt. GazetteAct amended to say renewals may be published, and must be published only if permit conditions are to be amendedConsequential amendments:

–Applications to carry workers need not be published–Remove reference to transfers and simplify section

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Department

of Transport

Provincial and local authorities added to the list of stakeholders for route committees etc.

Section 35 – Consultative Section 35 – Consultative structuresstructures

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Department

of Transport

SECTION 37 & 38 – SECTION 37 & 38 – APPOINTMENT AND POWERS APPOINTMENT AND POWERS

OF INSPECTORSOF INSPECTORS

Act provides for the Board to appoint inspectorsCEO is in a better position as the CEO is in close contact with the HR Division and Law Enforcement DivisionInspectors empowered to confiscate cabotage permits (omission in Act)

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Department

of Transport

SECTION 40 – OFFENCES AND SECTION 40 – OFFENCES AND PENALTIESPENALTIES

Where passengers intend to cross a border, the Act defines it as cross-border transport

Provincial Boards issue permits up to borders where passengers walk across

A presumption is introduced to presume cross-border transport where passengers picked up or set down within 1 km of a border (discussed with State Law Adviser)

Hiring out of permits is made an offence (see amendment to section 47)

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Department

of Transport

New section will empower Minister to suspend permits on routes or in areas, e.g. a rank in case of violence or unrestSuch powers are in provincial Acts e.g. the Gauteng Public Passenger Road Transport Act, 2001These powers are necessary to avoid conflict and save lives

NEW SECTION 46A – NEW SECTION 46A – EMERGENCY MEASURESEMERGENCY MEASURES

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Department

of Transport

SECTION 47 – DUTIES OF SECTION 47 – DUTIES OF PERMIT HOLDERSPERMIT HOLDERS

Holders of permits for more than 1 year will have to submit roadworthy certificates, proof of insurance etc. annually

Will become important if permits are issued for 5 years

A provision is inserted to prevent hiring out of permits

This will stop peddling of permits and bring the Act into line with the NLTTA

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Department

of Transport

SECTION 49 – CONSIGNMENT SECTION 49 – CONSIGNMENT NOTES AND PASSENGER NOTES AND PASSENGER

LISTSLISTS

Operators have complained that the 21 days allowed to submit consignment notes and passenger lists is too short

Period extended to 30 days

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Department

of Transport

Section 52 – Lapsing of unlawful provincial permits

• In the past the NTC and provincial Boards issued many cross-border permits and operating licenses: some are indefinite

• The Minister has written letters to the provincial Boards to stop this practice

• It has been agreed that these permits should lapse within 6 months, and operators should apply to the Agency for proper permits

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Department

of Transport

Section 46 of NLTTA

• Section 46 of the NLTTA prohibits setting down passengers at or near a border where they intend to cross the border

• The amendment will extend this to picking up passengers to block a loophole

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Department

of TransportOTHER CONSEQUENTIAL

AMENDMENTS

• Various other sections are amended to:– Effect consequential amendments, e.g.

deleting references to transfers– Update references to the old Road

Traffic Act, 1989– Change cross-references

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Department

of Transport

CONSULTATION

An Amendment Bill was published for comment in May 2000

A Plenary conference with stakeholders was held in Feb. 2002

Bill to MINCOM (now MINMEC) in April 2003: referred to provinces & other stakeholders for further consultation

Bill approved by State Law Adviser in July 2006

Bill published again for comment on 5 September 2006

Amendments have now become urgent

JCPS and BOCC consulted.

The intention to introduce the Bill in Parliament was Published in Government Gazette No. 30485 on the 23 November 2007. 28

CONCLUSION

• It is recommended that the committee concur with the Amendment Bill

THANK YOU

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