History about the Transport Sector
Across all economic policy trajectories transportation has been identified as a key demand-driven input industry and is therefore responsible for economic growth in South-Africa. The Transport Sector is one of the fastest growing industries in the country with sub-sectors like the Bus Commuter and Coach Services, Road Freight, Maritime, Rail, Domestic Aviation and Forwarding & Clearing. The Transport Sector has an important knock-on effect that impacts the entire economy of South-Africa.
The Integrated Transport Sector Codes was first published in 2009 and currently is the only Sector Code that has not yet been aligned to the B-BBEE Codes of Good Practice as envisaged by the Department of Trade and Industry. The Minister of Transport has appointed a new Transport Sector Charter Council in May 2023 with the mandate to oversee the implementation of the Integrated Transport Sector Codes and the alignment thereof to the Codes of Good Practice.
Changes to the Bill
The new Director of the Transport Council confirmed that the integrated Transport Sector Codes will be aligned with the Codes of Good Practice and published by the end of December 2023 and further confirmed that it is planned that these Amendments will come into effect from the 1st of March 2024, with no transitional period.
The following principles will be applied throughout the development of the Amended Integrated Transport Sector Codes:
ü Addressing all elements per the Codes of Good Practice.
ü Application of the same definitions, principles, and calculation methodologies to measure compliance as those used in the Codes of Good Practice.
ü Deviation from targets, weighting and thresholds used in the Codes of Good Practice only deviations are justifiable based on sound economic principles, sectorial characteristics, or empirical research.
ü Introduction of a new additional Elements for the measurement where such addition is justifiable based on sound economic principle, sectorial characteristics, or empirical research; and
ü Scope of Application should be clearly defined.
The Department of Transport held an Integrated Transport Sector B-BBEE Alignment Process during the week of the 4th of September 2023, and put the following strategies in place:
ü Working Groups have been selected to comment, give input, and engage in the finalisation of the Amendments and the alignment process, which includes Planning and Focus Groups, as well as Round Table Sessions.
ü Welcoming and encouraging comments and inputs from all relevant Stakeholders.
Entities falling within the Scope of the Integrated Transport Sector Codes are not subject to the stringent requirements, such as Priority Elements and Discounting Principles and therefore, going forward, companies will need to align their planning in accordance with the new proposed Integrated Transport Sector Codes or they will run the risk of not receiving a compliant B-BBEE Certificate.
At BEE Analyst, we are committed to assisting you in understanding and effectively adapting to these changes. We understand that change can be challenging, but it also presents unparalleled possibilities. Our team of experts is here to provide you with the guidance and support you need to thrive in this new era of transformation.
Contact us for further information on the proposed Amendments.
Adriana Kasselman
(012) 997 0037
adriana@beeanalyst.co.za
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