Policy or Polly says?
Policy or Polly says?
As we look forward to 2023, Nick PORÉE reviews the White Paper on National Transport Policy gazetted in 2021 by the Department of Transport (DoT), since it is an indication of future government intentions.
The document parrots ill-defined, generalised policy prescriptions and intentions but does not offer any definite major improvements or clarity on implementation. It appears to echo structural nuances from the command framework of the Department of Trade, Industry and Competition (DTIC). For the road freight industry, the policy document offers some apparent contradictions and undefined potential threats. It is notable that, according to the according to the White Paper (which you can find in full, starting on page 208 of this Handbook) the “policy of the government in accordance with these objectives and principles is grouped into the following principal modes of transport: civil aviation, maritime, rail, roads and public transport”. Ports and commercial road freight are not listed, but are included later.
Market coordination
The policy document makes frequent references to the aspirations of a centralist coordinating role for government, without evidence of any motivation for such interventions.
For instance, it states: “The regulatory framework on economic aspects, such as pricing, tariffs, licensing, and enforcement will be shaped to address market failures.” How does this work?
Furthermore, it goes on to say: “Competition, whether for or in the market, will be encouraged where possible, and economic regulation will be applied where appropriate… by a regulatory policy role to ensure effective regulation of safety, security, and quality in general, to control market access for transport operators where this is appropriate… and to determine prices and tariffs where appropriate, for instance in the case of natural monopolies.” Once again, I question how this works.
Operator regulation
On this subject, the White Paper states: “Regulation of the operations of competing operators: the role of the Government will be to ensure level playing fields and regulation for safety, leaving the operator as much freedom as possible to provide customer service as demanded in a competitive environment. In the case of freight transport, regulation will be in the form of the regulation of the quality (including safety) of the service, and not economic or entry regulation.”
There is a contradiction here, as the control of qualification and entry into the profession is the cornerstone of quality management.
Random regulatory objectives
In terms of random regulatory objectives, the White Paper states the following: “Regulation by a single economic regulator for all modes of transport: a Single Transport Economic Regulator (STER) will be established to ensure an efficient and cost-effective transport system, supporting economic growth, and meeting the social goals of reducing poverty, unemployment, and inequality. The STER regulation will indicate common principles across all transport modes, with objective, evidence-based justification required in instances of differential treatment. The STER will be finalised and formally established via its own legislation.”
The caveat “This will require implementation by focused and skilled experts, entrusted with the regulation of complex relationships and contracts (in particular in the case of competition for the market)” and the undefined peripheral policy objectives merit consideration and discussion. Will this all happen within government?
It should be noted that the “common principles” will have to accommodate very different regulatory frameworks – for example: monopoly supply of rail, port terminals, and pipeline transport, versus permit competition in road freight and air cargo.
Road freight market intervention
When it comes to road freight market intervention, the paper says: “A national road transport demand management guideline will be developed, considering the following principles:
- Diversify transportation options
- Integrate land use and transport planning
- Encourage more efficient heavy goods vehicle (HGV) movements
- Cover congestion mitigation in urban areas through a broad-based approach that is aligned with the National Land TransportAct (NLTA)
- Incorporate mode switching (including a shift to pipelines where relevant) to encourage energy efficiency and environmentally sustainable development
- Address road-to-rail demand shifts and inter-modalism at the national level”
This appears to perpetuate the illusion that transport demand and supply can be managed and diverted by mandatory interventions.
Proposed strategies
Proposed strategies include the introduction of traffic demand measures to reduce freight volumes on the road network, covering, for example, bulk minerals, liquid, gas, and agriculture products; the improvement of overloading control centres and expansion of the network; and an investigation of the introduction of a heavy vehicle fee to cover the true cost of the environmental and road infrastructure deterioration associated with road haulage.
The paper states: “It is noted that the introduction of any such heavy vehicle fee should be premised and dependent on the following:
- a) the completion of Transnet Freight Rail’s (TFR’s) infrastructure investment programme;
- b) a fee calculation that does not exceed the true cost of the negative externalities associated with road haulage; and
- c) accurate and correct pricing of rail-freight charges.”
There is an unacceptable assumption here of official coordination of road and rail freight instead of open access and quality regulated competition in both modes. TFR’s long-overdue infrastructure investment programme, meanwhile, is also a bit of a mystery.
Road safety
Thankfully, road safety is covered – albeit inadequately – with the paper stating: “Road-traffic safety is not a function in itself, but rather the result of the efficient and harmonious operation of road and traffic-related management systems, functions, and activities, developed and implemented with the purpose of improving quality in road traffic.”
The only response to this obvious statement is that “a stronger approach will be needed to effect a more drastic improvement” instead of well-defined intentions to address the effectiveness of the education, engineering, and enforcement actions which are the cornerstone of government road safety management.
Road freight issues
On the bungled implementation of the Road Transport Quality System (RTQS), the document stipulates: “The RTQS will be revisited and extended in order to ensure full and proper implementation of the system as contemplated in the 1996 White Paper.”
Note that this is a rejection of the Road Freight Strategy approved by Cabinet in 2017, which restored the recommendations of the National Transport Policy Study in 1987, which were rejected and not implemented.
Certificate of Roadworthiness (COR)
On the subject of the COR, it states: “Existing vehicle roadworthy standards in the South African Bureau of Standards (SABS) 047 will be enforced. Roadside testing of the compliance of vehicles with critical roadworthy requirements will be increased.”
It is noteworthy that this does not include an intention to revise the COR system for freight vehicles, which is ineffective and corrupted, as proven by the 65% of defective vehicles on the roads.
Legislation and regulation
Here, the paper states: “The Government will continue to support industry-led self-regulation schemes through the Road Transport Management System (RTMS) to encourage the industry to comply with regulations, improve road-transport management, and minimise negative externalities.”
Note the anomaly of support for a private company which deregulates the playing field and supports 30 m-long and 4.6 m-high vehicles – outside of the National Road Traffic Act regulations – with the approval of the DoT, which has for 16 years refused to change the height regulation (Reg 224).
Operator qualification and registration
When it comes to operator qualification and registration, the White Paper notes: “Some specific problems of traffic control have arisen in the road-freight sector since the deregulation of road-freight transport and the democratisation of the industry.”
The reference to the “democratisation of the industry” is interesting. This presumably refers to the uncontrolled access to the industry by unqualified and incompetent operators.
Modal shift
On this subject, the paper says: “The road-to-rail movement of the appropriate freight must be supported through more stringent overloading control of heavy vehicles. Effective law enforcement is essential to ensuring equitable competition in road transport. Current road-traffic law enforcement relating to various aspects of freight transport is deficient.”
This thinking is also questionable. After all, overloading control is irrelevant to intermodal competition. Industry only uses road haulage as a second choice due to lack of service. The main deficiency in overloading control is a lack of operator registration and capacity to monitor specific operator compliance.
Regional coordination
Here, it states: “The Government will support the formulation and implementation of the Southern African Development Community (SADC) Transport and Communications Protocol. Every opportunity will be taken to base policies and standards on international norms, particularly those of the United Nations.”
The SADC Protocol on Transport, Communication and Meteorology (PTCM) is outdated and in need of revision, yet there is no mention of South Africa’s deliberate abstention from involvement in the SADC-Tripartite Transport and Transit Facilitation Programme (TTTFP), which aims to revise and harmonise transport regulation in 27 countries of the East and Southern Africa (ESA) region.
Conclusion
The policy document paints a grim picture of future continued regulatory failures due to the lack of appreciation or competence within the DoT. There are no indications that the policy will address the current anomalies, impracticable and failed regulations, covert distortion of the playing field, corruption, or total lack of data monitoring or statistical bases for the proposed policies.
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