Advanced Diploma in Transportation Management

Module: Transport Policy and Legislation

Unit 3: National and Regional Transport Policies
National Transport Policies

Many countries have developed their own national transport policies. The
thrust of these national transport policies are similar. Common issues
covered by these National Transport Policies are:
 
• Recognition of transport in fostering growth and development

• The National Transport Policy should be seen as a long-term statement

of objectives

• Policy is not static but to be reviewed on a regular basis

• Legislation is crafted from policy

• Ownership of policy by stakeholders is critical

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National Transport Policies
• Goals of National Transport Policies of different countries are similar
• Examples of transport goals:

- To develop an adequate, safe, environmentally sound, efficient and affordable integrated transport
system within the framework of a progressive and competitive market economy (Nigeria Transport
Policy)

- To ensure the development of a coordinated and efficient transport infrastructure that fosters the
safe and competitive operation of viable, affordable, equitable and sustainable transport services
(Malawi National Transport Policy)

- To develop, operate and maintain an efficient, cost effective, safe, secure and integrated transport
system that links the transport policy with other sectoral policies, in order to achieve national and
international development objectives in a socially, economically and environmentally sustainable
manner” (Kenya Integrated National Transport Policy)

- To ensure the provision of adequate, efficient, affordable, safe and reliable transportation and
communication services …. . (Zimbabwe National Transport Policy)

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National Transport Policies
The South African National Transport Policy
• The vision of the South African National Transport Policy:

• “To provide safe, reliable, effective, efficient and fully integrated transport
operations and infrastructure which will best meet the needs of freight and
passenger customers …. .” South Africa National Transport Policy 1996)

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National Transport Policies
The South African National Transport Policy
Six broad goals of the transport policy:

• To support the goals of the Reconstruction and Development Programme

for meeting basic needs, growing the economy, developing human
resources, and democratising decision making

• To enable customers requiring transport for people or goods to access

the transport system in ways which best satisfy their chosen criteria

• To improve the safety, security, reliability, quality, and speed of

transporting goods and people

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National Transport Policies
The South African National Transport Policy

• To improve South Africa's competitiveness and that of its transport

infrastructure and operations through greater effectiveness and efficiency
to better meet the needs of different customer groups, both locally and
globally

• To invest in infrastructure or transport systems in ways which satisfy

social, economic, or strategic investment criteria

• To achieve the above objectives in a manner which is economically and

environmentally sustainable, and minimises negative side effects

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National Transport Policies
The South African National Transport Policy
• Strategies are required in order to attain the above goals
• Policies pertaining to National Transport Policy have been covered in 6
areas:

- Transport infrastructure (for all modes)

- Land passenger transport
- Land freight transport
- Civil aviation
- Maritime transport
- Road traffic and safety

• In each of these areas, the mission and strategic objectives are set
out, the key issues are highlighted, and the policies for addressing
these issues are stated
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National Transport Policies
The South African National Transport Policy

Example using Land Freight Transport:

Mission:

"To provide safe, reliable, effective, efficient and fully integrated land freight
transport operations and infrastructure which best meets the needs of
customers at improving levels of service at an equitable cost in a fashion
which supports government strategies for economic and social development
while being environmentally and economically sustainable".

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National Transport Policies
The South African National Transport Policy
The strategic objective
To find a practical and reasonable solution that leads to an equitable distribution of
infrastructural capital, management, operating and maintenance costs

Issue
One of the key issues regarding infrastructural capital, operating and maintenance
costs pertains to levelling the playing fields between the transport modes is equity
in the recovery of infrastructure provision, management, operation, and
maintenance costs

Policy
Government will strive to level the playing fields to enable fair competition between
the various land transport modes
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National Transport Policies
The South African National Transport Policy
• It is important to clarify a mission statement, objectives and an issue

• An issue is a matter that generates debate and there are different opinions
on it

• A mission statement expresses the big picture, while objectives are more
grounded and measurable

• The Table below (Slide 12) summarises the differences

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National Transport Policies

Characteristics Mission Objective

Specification of purpose Broadly stated Concrete

Definition of terms Formal Operational

Time period Unspecified Specified

Measurement procedure Non-quantitative Frequently quantitative

Treatment of target groups Broadly defined Specifically defined

Source: Adapted from Cloete (2013:101)

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Regional transport policies
Southern African Development Community (SADC) Member States

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Regional transport policies
Goals of the SADC protocol

• Integration of regional transport

• Elimination or reduction of hindrances and impediments to the movement
of persons, goods, equipment and services
• Broad-based investment to develop, preserve and improve viable
strategic transport, communications and infrastructure within an investor-
friendly environment generating adequate returns

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Regional transport policies
Goals of the SADC protocol
• Adequate own funding and appropriate supplementary funding, amongst
others, through recovery of full costs for maintenance of infrastructure
and service provision and progressive recovery of full future costs for
infrastructure and service provision and use on an equitable basis

• Customer driven service provision characterised by adequate access to

basic transport and communications services and progressive
improvement of service quality

• Improved diversity of services and provision of services on a competitive

bid basis through the promotion of fair and healthy competition between
service providers in terms of transparent, flexible, predictable and
streamlined regulatory frameworks
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Regional transport policies
Meeting the strategic goals (Article 3.2)

Member States to develop a harmonised integrated transport policy, which includes:

a) Establishment of infrastructure, logistical systems and institutional frameworks
b) Development of effective communication networks; which support intra- and intermodal
synergy and optimal utilisation of modes.
Member States shall apply the following principles:
c) The right of freedom of transit for persons and goods
d) The right of land-locked Member States to unimpeded access to and from the sea
e) The right of coastal Member States to unimpeded access to and from land-locked Member
States
f) Equality of treatment of the nationals and passenger service providers of Member States with
regard to the provision, access and use of infrastructure and immigration and clearance
procedures
g) The right of individual Member States to negotiate access and freedom of transit rights
consistent with the principles of this Protocol, while recognising that individual needs of
Member States may require specific bilateral arrangements
h) All modes of transport are allowed the necessary economic space to operate in a self
sustaining free market environment. 15
Regional transport policies
Meeting the strategic goals (Article 3.4)

1. Member States shall co-operate in incrementally promoting the development of

logistical systems by public and private sector bodies to support effective
intermodal transport operations characterised

2. The logistical systems referred to in paragraph 1 shall aim to enhance the

efficiency of specific regional development corridors in:
• the trans-shipment of cargoes
• the transfer of persons between modes
• the processing of cargoes and persons at trans-shipment points, frontiers
and destination points
• the planning and operation of transport

3. Member States shall endeavour and work towards the elimination or reduction
of impediments on the movement of persons.
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Regional transport policies
Meeting the strategic goals (Article 3.4)
4. For the purposes of paragraph 2, Member States shall in particular focus on:

• the harmonisation of domestic legislation, including provisions dealing with statutory

liability of service providers
• the development of simplified and harmonised documentation which supports the
movement of cargoes along the length of the logistical chain, including the use of a
harmonised nomenclature
• the implementation of state-of-the-art rapid communication, information and data
processing and exchange facilities to support corridor operations and supplying real-
time logistical and other information to corridor users
• the improvement of rail transit times
• the limitation of dwell times in ports and dry ports
• the implementation of measures to enhance the security of cargoes and protect the
life and property of passengers
• the development and implementation of quality controls including safety standards
applicable to all modal transport operators

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Regional transport policies
Meeting the strategic goals (Article 5.3)
1. Member States shall progressively introduce measures to liberalise their market access
policies in respect of the cross-border carriage of goods

2. For the purposes of paragraph 1, Member States shall introduce the following
liberalisation phases:

• PHASE I: Abolition of restrictions on carriers of two Member States to carry goods

on a defined route between states or in transit across the territory to another
member state or non-member state
• PHASE II: Abolition of restrictions on carriers of one Member State to carry goods
on a defined route between another Member State and a third Member State or non-
member State, irrespective of whether the carrier's vehicle traverses the territory of
its home state and
• PHASE III: Abolition of restrictions on carriers of one Member State to carry goods
between another Member State and a third Member State or a non-member State.

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Cross Border Policies
Introduction
• Bottlenecks created at border crossings – a worldwide
problem
• IDA (2015) in an article entitled “How Thick Are Those
Borders?” succinctly summarised the problem as follows:

- Staggering delays at African borders by

- An average of 68 hours to get clearance at most of the
customs stations on the Kenya-Tanzania border
- Numerous documents required for clearance
- The costs imposed by border delays create opportunities
for corruption

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Cross Border Policies
Challenges faced by cross border traffic
• Fragmentation of regulatory regimes within and between states

• Inefficient corridor and border management systems

• Non-implementation of regional transport agreements

• Absence of a one stop border post

• The above challenges have resulted in:

 Increased dwell time at border posts

 Increased journey times and

 Increased turnaround time for commercial vehicles 

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Cross Border Policies
South African Cross Border Act

• South African Cross-Border Road Transport Act mandate is to “provide

for co-operative and co-ordinated provision of advice, regulation,
facilitation and law enforcement in respect of cross-border road transport
by the public and private sectors;
• to that end, to provide for the establishment of the Cross-Border Road
Transport Agency;
• to repeal certain laws;
• and to provide for matters connected therewith”.

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Cross Border Policies
South African Cross Border Act

• The C-BRTA is playing a major role in promoting economic development

within SADC Region through facilitating access to cross-border markets
and improving the regulatory environment for trade and transport within
SADC Region

• Cross-border road transport is currently regulated through multi and

bilateral road transport agreements, concluded with various SADC
member states and in line with the stipulations of the SADC Protocol on
transport communication and meteorology

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Cross Border Policies
Core Functional Areas

Regulatory - responsible for the issuing and facilitation of all cross border permits

Law Enforcement - monitors the carriers through country-wide inspections and

ensures that carriers operate within the prescribed legal parameters

Advisory - advises the Minister of Transport and the DOT on regional road
transport imperatives and challenges. This function also monitors and counteracts
any restrictive measures that may be implemented by other states in the SADC
region

Facilitation - ensures that consultations and partnerships with other key role
players within South Africa and SADC are fostered and maintained

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Cross Border Policies
Regulatory functions

• No person may undertake cross-border road transport unless he or she

is the holder of a permit

• A South African carrier must apply to the Regulatory Committee for a

permit authorising road transport from the territory of the Republic into or
across the territory of any state with which the Republic has concluded
such an agreement and from such territory back to the Republic

• A foreign carrier must, where an agreement referred to in section 2(1)

exists and provides for extra-territorial jurisdiction, apply, in accordance
with the provisions of the

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Cross Border Policies

Non-tariff barriers

• Physical
• Regulatory
• Legislative
• Processes and procedural systems which
increases the cost of doing business

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Yamoussoukro Declaration
Background

• Pre-World War 2 aviation industry was very much liberalised

• Post 1945, the industry characterised by over regulation:

 Governments owned airlines and national routes
 Only 9 million passengers a year globally
 Currently, over 2 billion passengers globally fly annually
 Globalisation has diminished nationalistic concerns
 Need to liberalise arose and hence the Yamoussoukro Declaration
 Declaration established arrangements for the gradual liberalisation of
scheduled and non-scheduled intra-Africa air transport services.

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Objectives of the Yamoussoukro Declaration
• Integrate air transport services in Africa

• Create a conducive operating environment to promote development and

provision of safe, reliable and affordable air transport services

• Integrate air transport policies to eliminate barriers which hamper

sustainable development of air transport services in Africa

• Establish a liberalised intra-African aviation market by levelling the

playing field on issues concerning traffic rights, capacity, frequency and
pricing

• Promote co-operation amongst African airlines to stimulate development

• Comply with international safety standards

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Objectives of the Yamoussoukro Declaration

• Comply with the 5 freedoms of the skies which are:

- the right to fly over a country without landing
- the right to land in another country for non-traffic purposes
- the right to carry traffic from home state of carrier into another state
- the right to carry traffic from another state to home state of carrier and
- the right to carry traffic from home state into another state and be
allowed to carry traffic to or destined from a third state

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Objectives of the Yamoussoukro Declaration
Tariffs and capacity

• No approval required for designated airlines to increase

fares
• Airline required to give 30 days notice to adjust tariffs
• No need for approval for tariff decreases
• No limits to frequency for designated airlines
• No right by states to limit capacity
• Right to limit capacity only if it contravenes fair
competition
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Objectives of the Yamoussoukro Declaration
Safety

• With regards to safety and security, competition and settlement of

disputes, states agreed to protect the security of civil aviation against
acts of unlawful interference

• Each State Party to offer special security measures if requested to do so

• State Parties must comply with aviation safety standards and practices
as recommended by International Civil Aviation Organisation (ICAO)

• State Parties to ensure creation of a conducive operating environment in

their territories to promote fair competition and provision of equal
opportunities
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Objectives of the Yamoussoukro Declaration

Other Provisions
• Commercial opportunities: right to promote and sale air transport services in
another state
• Operational flexibility: operate flights in either or both directions, be permitted to
combine air services and use the same flight number, serve intermediate and
beyond points and points in the territories of the State Parties in Africa 
• Co-operative arrangements: a designated airline can enter into co-operative
marketing arrangement such as blocked – space, code sharing, franchising or
leasing agreements with an airline of the other State Party
• Review: decision to be reviewed every two years or earlier if requested by two-
thirds of the state parties
• State withdrawal: a State Party will withdraw from the decision by a formal
notification in writing addressed to the depository
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Why slow progress in implementing the Yamoussoukro
Decision

• A few countries have ratified the declaration

• Lack of Government commitment
• State protectionism for fear of the disappearance of the national flag
• The potential dominance of some carriers is a concern for certain governments
• Favourable traffic rights may be given to non-African carriers due to economic benefits
• Poor infrastructure provision and development and poor safety and security records and
systems in some countries have constituted to the lack of uptake of the Yamoussoukro
decision

• Discriminatory practices where some African countries have opened up to

intercontinental traffic despite refusing access to their neighbours in Africa

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