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D EPARTMENT OF TRANSPORT

D EPARTMENT OF TRANSPORT. SUSTAINABLE LOW COST MOBILITY SOLUTION TROUGH NON MOTORISED TRANSPORT. Policy thrust of NMT Problem statement Achievements Bicycle manufacturing and value chain Towards establishment a local bicycle manufacturing plant

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D EPARTMENT OF TRANSPORT

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  1. DEPARTMENT OF TRANSPORT SUSTAINABLE LOW COST MOBILITY SOLUTION TROUGH NON MOTORISED TRANSPORT

  2. Policy thrust of NMT Problem statement Achievements Bicycle manufacturing and value chain Towards establishment a local bicycle manufacturing plant Unpacking job opportunities, enterprise development & skills transfer Sustaining Shova Kalula project Presentation outline

  3. Policy thrusts for Shova Kalula • To implement and integrated developmental agenda which removes the legacy of dependency on welfare funding to deprived communities • The need to build a foundation of self sustainability based on economic activities in under developed communities • Addressing the devide of the first and second economy

  4. Policy thrust (cont) • To facilitate spatial development and land use pattern through effective utilization of non motorised transport operations as a catalyst to address the second and the first economy. • To develop demand responsive, balanced and sustainable transportation services and infrastructure which is fully integrated and supportive to human settlements.

  5. Problem Statement • In S A, developing and emerging economies, the transportation burden faced by the rural, peri-urban and urban communities on a daily basis is real and substantial. • Mobility and access to social services and the economic mainstream come at a high social and economic cost. • growing urbanization, congestion & demand for fossil fuel dictates a need for policy shift to integrate bicycling into the public transport

  6. Labour intensive methods: job creation

  7. Achievement in implementing NMT since inception • 69,000 bicycles delivered since 2001 Phase 2007 – 2008: 27,600 bicycles distributed 2008 – 2009: 26,100 bicycles distributed 2009 – 2010: 15,000 bicycles distributed 2010 - 2011: 1 400 bicycles distributed New intervention of increasing the quantities

  8. Bicycle Manufacturing industry in SA and value chain • Value chain and its manufacturing stages • Supply of raw materials – Transport for delivery • Components manufacturer – Transport to site • Bicycle manufacturer – builders- Transport - Assembly plant – Factory-Transport • Bicycle distributor – Wholesale – Transport • Certification and testing of a complete bicycle , then hand over to end user • Maintenance and operations [Bicycle repair] • Administrative processes and logistical support through out

  9. Policy proposal: To have a fully fledged local manufacturing plant through an incremental approach. Prioritization of public transport and Shova Kalula bicycle project Scholar transport & NMT to be integrated in public transport infrastructure & services Shova Kalula bicycle provision to be subsidised from scholar transport fund Spheres of government to commit and sign SLA`s Interventions to promote SK:

  10. Interventions to support SK • NMT policy to be finalised in accordance with the recent pronouncement • NMT plans to be contained in the ITPs before approval • NMT to be included in National Road Traffic Act and the Public transport action plans • Bicycles to be centrally procured for economies of scale • RFP process for a costing model and determination of revenue • Municipalities to develop their own by-laws addressing NMT. • Provinces and Municipalities to establish units to deal with NMT

  11. Interventions to support SK • Finalize feasibility study (bicycle plant) with model framework • Develop a costed model for bicycle manufacturing plant • Encourage provinces to budget for Shova Kalula • Encourage provinces to distribute bicycles, set up micro businesses and provide NMT infrastructure & facilities • PTIS and PTOG to fund NMT infrastructure and services • Promote private sector participation through PPP

  12. Towards establishing a bicycle manufacturing plant and job creation • Involve private sector through concessionaire • Four staged approach (4 years) • Year 1 Secure a land (DoT) Build infrastructure, acquisition and installation of equipments Training of staff Importation of fully assembled bikes • Year 2 - Import bikes 25% assembled • Year 3 - Import kikes 50% assembled (Local frames) • Year 4 - Import bikes 100 (fully manufactured locally)

  13. Unpacking job opportunities, enterprise development & skills transfer • Develop a framework for concessionaire and present at Investor conference • Sign service level agreements with potential investors • Government to • Provide land • Facilitate tax breaks and incentives • Facilitate funding for the plant • Plants will be set up in all 9 provinces to support local economic development and job creation • Finalize impact assessment of ShovaKalula rollout project

  14. The end Thank you

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