ADVISORY COMMITTEE ON ROAD INFRASTRUCTURE RESEARCH PJ Hendricks 16 NOVEMBER 2004

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ADVISORY COMMITTEE ON ROAD INFRASTRUCTURE
RESEARCHPJ Hendricks16 NOVEMBER 2004
EIGHTH MEETING OF THE ROAD PAVEMENTS FORUM (RPF)
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Presentation outline

• Changing Environment ST
• Recap
• Research Advisory Panels (RAPs)
• Feedback of RAP meeting of
• CSIR Transportek feedback
• University feedback
• Way Ahead
• Discussion, Questions?

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Changing Environment ST

• South Africa
• Low investment in RD (0.7 of GDP)
• Strategic vulnerability of economy
• Weak human resources base
• 7 researchers per 10 000 of labour force (27 in
  Korea and 48 in Australia)
• Frozen demographics
• Declining private sector RD
• Inadequate intellectual property framework
• Fragmented governance

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Changing Environment ST
Publications per Race/ Gender
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Changing Environment ST
Implementation of the New National ST Strategy

• The three operational objectives of the strategy
  are
• Achieving mastery of technological change in our
  economy and society (Innovation)
• Increasing investment in South Africas Science
  base (Human Capital and Transformation)
• Strengthening and realigning the ST machinery
  of government (Alignment and Delivery)

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Changing Environment ST

• CSIR ENVIRONMENT
• Constituted as a Science Council by an Act of
  Parliament
• In the national interest, the CSIR, through
  directed and multi-disciplinary research and
  technological innovation, should foster
  industrial and scientific development, either by
  itself, or in partnership with public or private
  sector institutions, to contribute to the
  improvement of the quality of life of the people
  in South Africa. (and the region)

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Changing Environment ST
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Changing Environment ST

• Current state of Science and Technology at CSIR,
  and the rigour in our parliamentary grant funded
  projects
• Need to improve the parliamentary grant
  allocation process
• Need to improve career paths in ST/ RD
• Need to improve our science base, our ST
  outputs/ achievements/ relevance, outcomes and
  impact
• Create space for new fields of ST/ technology
  applications

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Changing Environment ST

• Fulfill the mandate of the CSIR
• Conduct research and achieve innovation, in
  pursuit of outcomes that benefit nation region
• Parliamentary grant is part of the pool of public
  funds, competing with all other public funding
  requirements

The purpose of the Parliamentary Grant is to-
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PG Investment and Review Framework
Executive
Small team chaired by Exec with significant
stakeholder and Customer input
Small team chaired by Exec with appropriate
stakeholder input
Investment Plans SET reviews, New initiatives
SRP
IAF
Independent expert review
Independent assessment
Investment plans
New Initiative
BU
BU
Theme
Theme
BU
RAP
RAP
RAP
RAP
RAP
RAP
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Changing Environment ST

• Research Advisory Panels (RAPs)
• The aim is provide domain specific guidance on
  stakeholder and market needs, and to give
  direction in terms of current and future ST
  trends. Managed by BUs or Themes, typical levels
  of implementation
• Level i -
• Input from at least an internal advisory panel
• Level ii -
• Input from advisory panel, with at least some
  internationally recognised experts
• Level iii -
• Full advisory panel with expert, industry,
  community, govt (including user groups, vested
  interest groups) advisory input or formal
  advisory structure

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RAP Feedback (Transportek)

• RAP MEETING
• Reasons for session
• SANRAL pavement research document
• Prepared over number of months
• Discussions Nazir,Basie, Kobus
• Recent discussions with Kobus highlighted
• Fragmentation in research
• Clear need for understanding environment in
  stakeholder workshop
• Need for new approaches
• Changes within CSIR environment

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RAP Feedback (Transportek)

• 1st meeting August 2004
• Invited members
• ASPASA
• Asphalt Academy
• CCI
• CSIR
• DoT
• Gautrans
• Jeffares Green
• KZN DoT
• RBPM
• Sabita

• SAFCEC
• SANRAL
• Tshwane University of technology
• University of Stellenbosch
• University of Pretoria
• VKE
• Western Cape DoT
• Women in Construction

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RAP Feedback (Transportek)

• STATE OF ROAD INFRASTRUCTURE ST IN SOUTH AFRICA
• South Africa is no longer keeping abreast of
  latest developments in international SET
• No longer a culture of innovation in roads sector
  (versus early 1990s)
• National guidelines and specifications become
  outdated and are not well managed
• Significant decrease in research funding and, as
  a consequence thereof, in research capacity
• Ageing research population lack of young blood
• Deteriorating/inadequate research infrastructure,
  particularly at centres of higher learning

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RAP Feedback (Transportek)

• STATE OF ROAD INFRASTRUCTURE ST IN SOUTH AFRICA
• No strategic vision and plan for pavement
  engineering research and development
• No holistic understanding of research activities
  across organisations
• Limited sharing of research outcomes technology
  transfer often neglected
• Tough competition for limited public funding
• A number of diverse players (DoT, SANRAL,
  Provinces, local authorities, industry, research
  organisations) lack of co-ordination
• Fragmentation in research infrastructure and
  limited funding

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RAP Feedback (Transportek)

• Concerned about ability to retain skills, world
  class competencies
• Huge decline in research spend
• Not top of mind in research agendas
• Mainly mature technology
• Results in industry
• Large capacity gaps
• Materials testing
• Pavement/materials design
• Site supervision
• Outdated guidelines, standards, specifications

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RAP Feedback (Transportek)

• Research Environment Road Engineering
• NDOT
• Currently restructuring in place
• Team looking at research/innovation strategies in
  line with recommendations of DST
• Priorities
• Accessibility to majority of population
• Public transport
• Freight management and logistics economic
  development
• Safety for users of land transport
• Capacity development
• Roads service provider SANRAL (23 of budget)
• Act clearly states responsibility to conduct
  research in roads field
• Unlikely that research plan/investment by NDOT
  will reflect road engineering component

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RAP Feedback (Transportek)

• CSIR-Transportek
• Changes in operation unit since 1950s
• Parliamentary grant
• R13 m of R70 m turnover
• Prioritised according to set criteria, transport
  needs
• Maximum of R2 m to R3 m into road engineering
• Competence retained through
• Strategies to seek alternate markets, e.g. USA
• Gautrans APT programme
• Private sector input

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RAP Feedback (Transportek)
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RAP Feedback (Transportek)
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RAP Feedback (Transportek)
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RAP Feedback (Transportek)
Transport Challenges
Macro-trends
Societal drivers

• Improving strategic planning
• Ensuring economic sustainability
• Optimising infrastructure provision
• Institutional innovation
• Improving organisational capacity and skills
• Enhancing safety of all users and workers
• Managing increased pressures of globalisation on
  integration and capacity
• Improving freight transport
• Meeting basic mobility needs
• Addressing security crime
• Achieving environmental sustainability
• Advanced energy sources
• Harnessing ICT effectively in transport

Population growth growth of cities
Conflict security
Nature of demand
Economic drivers
Technology drivers
ICT
Energy
Regional-isation
Global-isation
Vehicle technology
Private sector involvement in governance
Infrastructuretechnology
Sustainability drivers
Economic
Social
Environmental
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RAP Feedback (Transportek)

• Inputs
• RAPs, foresight, internal review, peer review
• Technology strategy
• Transport infrastructure provision and
  maintenance
• Construction and contractor development (LIC)
• Traffic management systems
• Transport planning, modeling, operations and
  logistics
• Rural transport and access
• Transport economics and decision support
• New focus areas
• ITS
• Environmental engineering in transport
• Energy and transport
• Freight management and logistics

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SA supply chains have in the past serviced low
value commodities. Shifts in the economy reflect
the need for more advanced supply chains able to
service growth in manufacturing and service
sectors.
Gaps exist in assets necessary to maximise the
economies of scale of container traffic
Gaps exist in collaboration, integration and
flexibility of the services provided by alliance
partners
2003
High value

• Agile supply chains that are adaptable to market
  growth and changing market needs

• Agile supply chains with demand-driven supply
  chain strategies

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eg Automotive
eg Containers
Type of goods

• Lean supply chains with continuous replenishment
  strategies

• Lean supply chains with low cost strategies

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eg Steel
eg Mining
Low value
Integrated
Basic
Gaps exist in the operation and management of
cost effective bulk services
Gaps exist in the integration of supply chains
for low value commodities
Supply Chain
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The current strategic challenges facing our
sector and the international precedent favouring
increased private sector participation in
operations requires an institutional arrangement
with clearly delineated roles and
responsibilities.
Future Vision of the Freight Logistics Industry
Policy
Safety, security environment regulation
Economic regulation
Operations
Infrastructure
Function

• Independence
• Transparency
• Level playing fields

• More than one operator

• Government owned and strategically managed
• User pays
• Differentiated social pricing

• Enabling environment
• In the national interest

• Government penalties and incentives

Principle

• Pricing
• Sustained separation
• of activity
• Sustained competition

• Improved
• efficiency levels
• Lower price
• Improved Customer
• focus
• Greater accessibility

• Sustained
• re-investment
• Scope for PPP and BEE
• Risk sharing
• Infrastructure aligned to customer need

• Integrated
• national
• logistics policy
• environment

• Clarity on rules
• of engagement

Potential impact
Institutional type

• Sector regulator
• Reporting to Parliament through Minister

• Operators

• Ring fenced infrastructure providers

• Government

• Regulators and Government

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The interventions required to align the rail
sector to the new freight logistics vision hinges
on splitting infrastructure from operations.
RAIL
Long Term
Medium Term
Short Term
STATUS QUO

• Transport Regulator focused on abuse of monopoly
  power while Transnet is both operator and
  infrastructure provider

• Immediate establishment of Rail Regulator

REGULATION

• Transport Regulator focused on day-to-day
  management of fair open access and prices for
  infrastructure

• Open (mandated) access on the network as a
  principle
• Selected concessions where open access deemed
  inappropriate

• Selected open access by new operators
• Selected concessioning under the direction of the
  Regulator

• Limited private sector operators under negotiated
  access from Spoornet

COMPETITION

• Corporatised Rail Infrastructure utility in
  Transnet

• Spoornet vertically separated into Rail
  infrastructure utility operations company as
  part of Transnet

INFRASTRUCTURE PROVIDER

• Rail infrastructure provider to provide
  infrastructure manage access and concessions

• Greater transparency of pricing between
  infrastructure and operations
• Build up in efficiencies
• Greater customer focus

• Continued inefficiencies
• Improved transparency in Spoornet
• Lack of sustainable re-investment

IMPLICATIONS

• Reach efficiency levels
• Reduced logistics costs
• Sustainable re-investment in infrastructure
• Better balance between road and rail
• Improved collaboration and integration

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Aligning the various modes to the new freight
vision will not in itself improve integration.
This integration can be achieved through a
concept known as a Logistics Activity Precinct
(LAP).
Desired LAP end state
What we need to do to close the gaps
What is a LAP? A designated area in which all
logistics related activities are brought together
to promote seamless supply chains

• LOGISTICS ACTIVITY PRECINCT (LAP)
• Integrated intermodal facilities
• Container terminal
• Warehousing
• Container store and repair
• Packing and unpacking of containers (depot)
• Transport services
• Weighbridge
• Truck stop general amenities
• Truck parking facilities
• Freight forwarding services
• Appropriate town planning
• Consolidation services
• Distribution services
• Industrial development
• Access improvement

Gaps in Inter-modal integration

• Poor intermodal interfaces
• Poor town planning to support logistics
• Poor interface between corridor
• Insufficient integration and collaboration in
  urban economic environment

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An analysis of the supply chain in the SA steel
sector (as an example) suggests that service
improvements through application of the new
strategy would move SA from number 7 to 4 in
world steel price rankings and increase SAs
market share by between 5 to 8
Worldwide comparison of cost for Hot Rolled Steel
(ex works) (Excluding outbound logistics)
300
250
200
150
US
100
50
0
UK
RSA
USA
India
Brazil
Spain
China
Russia
Japan
Poland
Canada
Turkey
Australia
Germany
Argentina
USA (other)
Netherlands
Inbound Logistical costs
The above savings could relate to direct
influence on a probable market share gain of
between 5-8 (This is excluding the value of
efficiency opportunities lying within the
outbound logistical flows i.e. moving export
tonnages from road to rail)
Operational costs (excluding outbound logistics)
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RAP Feedback (Transportek)

• Intelligent Transport Systems (ITS)
• Laboratory in place (2 years)
• SA faced with serious transport problems
• Congestion, carnage on roads, increased user
  demand
• Technology offers ways to address these
  challenges
• Intelligent Transport Systems (ITS)
• Monitor the movement of vehicles and pedestrians
  in real time
• Techniques vary
• Simple variable-message signs that seek to divert
  incoming traffic from congested areas
• Sophisticated real-time evealuation of excess
  capacity on express lanes and preferential
  treatment for public transport vehicles
• Capabilities and competences
• Image processing
• Photometric laboratory
• ITS communications
• Electronic security systems
• Public transport payment systems

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RAP Feedback (Transportek)
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RAP Feedback (Transportek)

• Strategic objectives for transport
• Role in economic development
• Safety and personal security
• Increasing access and mobility
• Public health issues
• Environmental sustainability
• Human resource development
• Poverty alleviation / job creation

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RAP Feedback (Transportek)
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RAP Feedback (Transportek)
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RAP Feedback (Transportek)
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RAP Feedback (Universities)
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RAP Feedback (Universities)

• Transportation Engineering and Safety
• Pavement Engineering
• Transport Economics
• Transportation Planning
• Urban Transportation Systems
• Public Transport-Planning and Operations
• ITS in Transportation
• Transport Economics
• Logistics
• Freight Transport
• Maritime Studies
• Transport Policy and Strategic Planning
• Transport Management
• Construction Management

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RAP Feedback (Universities)
Number of institutions offering background in
Pavement Engineering has reduced
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RAP Feedback (Universities)
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RAP Feedback (Universities)
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RAP Feedback (Universities)
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RAP Feedback (Universities)

• Priorities for new resources(wish list)
• Human capital (qualified operators)
• General (standard) equipment
• Specialised equipment
• Design software

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RAP Feedback (Universities)

• Contrary to USA findings of 60 final years and 25
  academic staff, SA has much less (30 to 50
  students)
• Specialist equipment is limited to a few
  institutions. This limits attraction of good
  students and quality subst research
• Perception by some of poor quality lab equipment
  hinders new intake

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WAY AHEAD

• Realisation that
• The basics need to be revisited
• Technology needs to be transferred (hunger)
• Fit-for-purpose technologies (practical,
  implementable solutions) need to be developed
• The environment needs to be protected
• The sector needs to re-invest in research
• Partnering is key to achieve objectives

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WAY AHEAD

• Cold In Place Recycling
• (Gautrans, Sanral, Sabita, W/C, etc)
• R4.1 million
• CSIR, US, AA Loudon
• Low Volume Roads
• (Gautrans, W/C, NDoT)
• R1.3 million
• CSIR
• Cement Concrete
• (Gautrans, Sanral, CCI)
• R2.2 million
• CSIR, Strauss CC

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WAY AHEAD

• We need industry-wide cooperation to solve the
  problem
• An advisory and decision taking structure is
  required
• Practice portfolio balance in terms of short-term
  needs vs longer-term needs
• Build critical mass in resources and
  infrastructure in order to counter fragmentation
• Majority of the funding should be used to conduct
  projects within the core team
• Expertise outside the core team should be used on
  an as required basis, but in a co-ordinated
  process
• The full RD cycle, including technology transfer
  must be considered in planning processes

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WAY AHEAD

• Model Joint planning, own operations model
• Joint planning, joint strategy
• Funders pitch for projects in the portfolio
• Funders own procurement and management processes
• Share in results
• Pros
• Maximum control by funder
• Cons
• Difficulty in procurement processes, tendering ?
• More fragmentation leading to lesser quality and
  impact
• Cannot build core capability, critical mass
• Portfolio management impossible
• No real international standing, low potential for
  international co-operation
• Management costs high

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WAY AHEAD

• Advisory committee
• Develop strategy and planning, including
  activities such as foresight studies, portfolio
  analysis
• Advise executive committee on needs and
  prioritize projects
• General review of outputs and objectives
• Assist in impact assessment
• Executive Board
• Provide funding
• Establish core capability
• Finalise project plans, appoint project champions
• Appoint researchers from core team and other
• Develop research management processes
• Provide management resources
• Project management and output quality review
• Technology transfer

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WAY AHEAD

• Next meeting first week in December
• Needs determination process
• Agreement on themes
• One Strategic Road Engineering Research Strategy
• Will be forwarded to DoT, NRF
• To take cognisance of research focus areas
• Document should be available for dissemination at
  next RPF together with document retrieval system
  for road researchers/stakeholders
• Document system is currently under development
  using PG funding to establish system in which all
  CSIR transport research (including road research)
  available to external users free service
• Ready by end January
• All RPF members and external users will be
  alerted
• Next RPF will be demonstrated

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WAY AHEAD
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WAY AHEAD
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