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Hon Nduna PRE-BUDGET 2016 REPORT OF THE PORTFOLIO COMMITTEE ON TRANSPORT

REPORT OF THE PORTFOLIO COMMITTEE ON TRANSPORT AND INFRASTRUCTURAL DEVELOPMENT

OUTCOMES FROM CONSULTATIONS WITH STAKEHOLDERS:

2016 PRE-BUDGET SEMINAR, ZITF HALL, BULAWAYO, 05 NOVEMBER 2016

INTRODUCTION

“The reality about transportation infrastructure is that its future-oriented. If we

are planning for what we have

then we are behind the curve.”

(Anthony Foxx, U.S. Secretary for Transportation)

IMPORTANCE OF TRANSPORT AND INFRASTRUCTURE

  • Importance of Transport and Infrastructure to the revival of Zimbabwe cannot be overemphasised:
  • ZIMASSET acknowledges that:

“In order for the Zimbabwean economy to register growth in a manner that is both competitive and effective, there is need for the country to undertake work in critical areas such as the development of a robust, elaborate and resilient infrastructure” (ZIMASSET, p77) It is no coincidence that the SDGs include a goal on infrastructure:

THE QUESTION REMAINS THEREFORE WHAT FUTURE DO WE ENVISAGE?

Road Transport Network

Now                                                Future

WHAT FUTURE DO WE ENVISAGE?

Rail Network

Now                                                       Future

WHAT FUTURE DO WE ENVISAGE?

AIRPORT INFRASTRUCTURE

NOW                                                      FUTURE

WHAT ARE THE IMPEDIMENTS? (SUBMISSIONS FROM STAKEHOLDERS)

  • In line with its representative function, enunciated in Section 141 of the Constitution, the Committee duly engaged and received input from the following stakeholders:
  • Passenger Association, Bus Operators Association, Helicopters and Tour Operators Association, Association of

Urban Councils, Zimbabwe Institute of Engineers, Combi

Operators Association, RMT, CVR ,ZINARA, VID, Traffic

Safety Council of Zimbabwe, CMED, Air Zimbabwe, NRZ,

Rural District Councils, Univerm, Inter-Toll, Zimbabwe

Indigenous Contractors Association, AAG, CAAZ, NHS, IPEC, ICZ, NBSZ, IDBZ, among others

  • They identified the following impediments to the growth of the sector…

SUBMISSIONS FROM STAKEHOLDERS

  • Bus Operators: removal of duty of 40% for importation of cross border and inter city coaches.
  • While acknowledging that the imposition of duty was meant to protect local manufacturers, bus operators contend that the local manufacturers, Quest Motors & AVM, can only manufacture a limited brand of buses:

Quest Motors- Q Bus                                          AVM

SUBMISSIONS FROM STAKEHOLDERS CONTD

The Competition!!!

u Irizar i6

SUBMISSIONS FROM STAKEHOLDERS CONTD

  • The Competition!!!
  • Marcopolo 3

SUBMISSIONS FROM STAKEHOLDERS

Clearance of US$ 3, 5 million debt owed to IATA by Air

Zimbabwe

Removal of bulk goods transportation by road to resuscitate National Railways of Zimbabwe;

Procurement of state-of-the art Radar equipment for

Air Traffic Controllers; {Video}

VIDEO: RADAR FOR AIR TRAFFIC CONTROLLERS

Submissions from Stakeholders

  • Dualisation of Beitbridge-Chirundu Highway to include 80% indigenous contractors;
  • Roadside fencing of major highways;
  • Payment of debt owed to CMED by Government;
  • Computerisation and integration of transport management system;
  • Attitudinal change by management, especially at CAAZ (Video)

NEED FOR ATTITUDINAL CHANGE IN MANAGEMENT

Committee Recommendations to Mobilise Domestic Resources

u Computerisation and integration of the transport management system will reduce loss of revenue through leakages. (Minister Chombo acknowledged that Government is attending to it and it will be in place in the next few weeks (Video)

Committee Recommendations to Mobilise Domestic Resources

  • The Ministry should promulgate a Statutory Instrument which bans bulk goods transportation by road. Transportation of chrome ore by rail will promote longevity of our roads and raise $2, 1 billion for NRZ while transportation of 700 metric tonnes of grain will raise $200 million for NRZ;
  • Purchase of radar equipment: will enable the country to raise money from charging for airspace usage which is not currently being done as the radars cannot detect aircraft beyond 34 000 feet;
  • Roadside fencing using 3rd Party Insurance Remittances to the TSCZ which this year alone racked in $2,8 million with $1,8 million accruing to Treasury
  • Establishment of Stabilisation Centres at toll gates

Committee Recommendations to Mobilise Domestic Resources

  • Enforcement of insurance remittances to TSCZ can raise close to $10 million annually with half of that accruing to Treasury;
  • Reduction of duty on importation of coaches. Prior to the introduction of 40% duty, 642 buses were imported in 2014 and $34 million accrued to the fiscus through VAT, Income Tax, fuel payment etc. This year only 56 buses were imported meaning the country lost $27 million in revenue;
  • Give a more prominent role to local engineers and companies in construction projects involving PPPs creating employment and wealth for the nation;
  • Commercialisation of VID
  • Utilisation of Maintenance Reserve Account

CONSEQUENCES OF INACTION

CONSEQUENCES OF INACTION

CONSEQUENCES OF INACTION

Conclusion

“For every 1 billion we invest in public transportation, we create 30

000 jobs, save thousands of dollars a year for each commuter, and

dramatically cut greenhouse gas

emissions” (U.S. Senator, Bernie

Sanders, 2007)

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