SANRAL (South African National Roads Agency (SOC) Ltd) has announced bold new plans for the South African road network under the banner Horizon 2030 – but failed to make any meaningful comment on the existing debacle with its eToll network around Gauteng.
The only comment on the issue was from Skhumbuzo Macozoma, the CEO: “Roads have to compete for funds from the fiscus with other socio-economic priorities and it is of critical importance to find a workable funding strategy.”
Additionally, it announced no tenders for work would be awarded to any company not at least 51% Black owned, with Macozoma saying: “We want to break down the traditional monopolies in these supply chains.”
However laudable the concept of economic transformation might be, there is a real danger companies being awarded road building tenders may not have sufficient infrastructure or equipment to handle the job and would have to sub-contract to those very ‘monopolies’ – creating massive price pressure SANRAL will undoubtedly attempt to recoup through tolls.
The full text of the media releases are published below:
SANRAL (South African National Roads Agency (SOC) Ltd) has embarked on the development of a new, long- term strategy which articulates its vision and the necessary strategic and tactical interventions needed to deliver on its objectives.
“The more than 22 000 km of roads managed by SANRAL are a critical public asset with an estimated net asset value of R251,6-billion” says Skhumbuzo Macozoma, the CEO of the South African National Roads Agency (SOC) Ltd. “Our aim is to ensure the national road network creates economic value for the entire nation and support the growth of an inclusive economy.”
Horizon 2030 is the new long-term strategy that has been approved by the SANRAL Board for consultation. It will now be presented to various stakeholders including communities, industry bodies, strategic partners and labour throughout the country.
“We are confident that we are building a better South Africa through delivering better roads,” says Macozoma. This has been embedded in our new vision “to provide a national road transport system that delivers a better South Africa for all.
In 2018 SANRAL will start its third decade as the custodian of the national road network. The new strategy takes into account the priorities of the National Development Plan and government’s strategic objective to build a more inclusive economy.
“The national road network should be at the core of future strategic planning in South Africa. It links people to opportunities, connects communities across rural and urban divides and holds vast potential for job creation, empowerment and skills development. It is sustained by the symbiotic relationship between all the respective road authorities from national to provincial and local.
“Through Horizon 2030 SANRAL wants to highlight the role that the national road network can play in contributing to the aims of the National Development Plan to reduce inequality, support employment and eliminate poverty by the end of the next decade,” says the Minister of Transport, Joe Maswanganyi.
“We want to demonstrate how state-owned entities such as SANRAL are assets to the South African economy, can add significant value and be relevant to the lives of all South Africans.”
Macozoma says the new strategy outlines a number of key strategic perspectives that seek to build on SANRAL’s reputation for engineering excellence whilst also taking into account the changing role of national roads. Horizon 2030 has now elevated stakeholders and road safety into its core pillars, recognising the crucial role these play in SANRAL’s successful delivery and in preserving the lives of our people
Government continues to affirm road safety as a national priority and SANRAL as outlined in the strategy will play its role in the provision of both safe road infrastructure and technology and promote road safety education and awareness.
The strategy calls for a number of key deliverables that include the development of Roads 2030 long term plan, public transport enablement, an enhanced role in terms of community development, equitable access to economic opportunities and an integrated funding model.
Macozoma says consultation on the content of the strategy should contribute to a more informed public debate on future funding policy for road infrastructure. Roads have to compete for funds from the fiscus with other socio-economic priorities and it is of critical importance to find a workable funding strategy.
“Horizon 2030 is SANRAL’s pro-active response to the changing dynamics across various sectors of the economy and society. In addition, it will ensure that communities across the country share the benefits of a well-managed road network that supports the growth of a transformed economy that contributes to job creation and empowerment”, says Maswanganyi.
SANRAL will in future use its procurement and supply chain processes to transform the construction industry, break down monopolies and advance the broad participation of black-owned contractors and suppliers.
This was revealed by the Minister of Transport Joe Maswanganyi at a breakfast meeting in Johannesburg today where he unveiled the roads agency’s draft transformation policy.
“SANRAL’s new transformation policy sets clearly defined targets for the participation of black contractors, professionals and suppliers in all projects commissioned by the agency,” Minister Maswanganyi said.
Skhumbuzo Macozoma, the CEO of the South African National Roads Agency SOC Ltd (SANRAL) said it is committed to go beyond the minimum requirements for transformation set by existing legislative and regulatory frameworks.
“SANRAL plays a critical role in the construction and related industries,” said Macozoma. “We are keenly aware of the impact our procurement practices have on economic transformation, job creation and the lives of millions of people across South Africa.
“We accept the responsibility to use our procurement and supply chain processes to transform the construction industry and SANRAL is confident that this will be a catalyst for a much broader-based participation of black-owned companies in the sectors.”
Future contracts will set requirements for the utilisation of labour sourced from local communities and favour the procurement of locally-developed materials, equipment and technology. “We want to break down the traditional monopolies in these supply chains,” said Macozoma.
The transformation policy was approved by the Board of SANRAL and will now be canvassed with stakeholders including national and provincial government departments, the engineering and construction sectors, existing suppliers and contractors and labour. It covers the entire spectrum of SANRAL’s procurement processes and proposes, amongst others, the following:
On capital projects SANRAL will only do business with companies that are at least 51% black-owned and with a minimum B-BEE Level 2 rating. A maximum of 15 tenders per year will be issued to a single company and contractors will be required to make use of SANRAL-approved sub-contractors.
- The same provisions will apply for road maintenance projects to ensure the broad-based participation of local companies and communities. Special attention will be given to the procurement of innovative road furniture and road safety material from black suppliers.
- Concessions to manage and operate toll roads will only be awarded to companies with a 51% black ownership. To reduce monopolies SANRAL will limit the number of contracts awarded to established and dominant industry players.
- Black real estate and property developers will be allocated all SANRAL-related business on contracts below R100-million and the 51% requirement will apply for larger developments.
- SANRAL’s transformation policy will apply to all sub-contractors in the fields of information communication and technology, professional services, finance and audit and marketing and communication. Contracts will also include detailed provisions for sub-contracting to small and micro enterprises.
Macozoma said SANRAL will introduce a structured programme to provide support for emerging contractors and suppliers and to create partnerships with industry players which will contribute to the rapid growth of black companies in the construction sector.