Programme Director

Representing the Mayor of King Cetshwayo District Municipality; Cllr Cele

Deputy Mayor of uMhlathuze Local Municipality Cllr Duduzile Sibiya;

Transnet National Ports Authority Acting Chief Operating Officer Captain Rufus Lekala;

SAASOA Chief of Executive Officer – Peter Besnard;

Transnet Chief Corporate & Regulator Ms Xoli Mpongoshe;

The entire Management of National Ports Authority

Chair of RIBDZ and Acting CEO

Management and all categories of staff representing entities and different spheres of government;

Invited Guests;

Members of the media;

Ladies and gentlemen;

Good Morning

On behalf of the provincial government we would like to express sincere appreciation to the entire management of Transnet National Ports Authority – both national and provincially for inviting us to this important occasion.

I recall that sometime in July last year a Memorandum of Understanding (MoU) was signed between Richards Bay Industrial Development Zone, uMhlathuze Local Municipality and Transnet National Ports Authority (TNPA). This paved the way for the establishment of a framework for the parties to engage effectively with one another on strategic issues of mutual benefits and significance.

Critically, as KZN government we appreciated the fact that Transnet announced that there were plans to invest R7.5 billion in Richards Bay, over the five-year period from 2018 to 2022.

We indicated, as government, that the signing of the MoU opened up significant opportunities for the three parties to work together.

The fact that all of us are here today is testimony to the fact that we are working together to create a prosperous province.

I have often stated in many platforms that our success as the province is critical for the success of the whole country and neighbouring countries. The success of KZN is the one that has an impact in the whole country. That is why it is important that as KZN we uplift the economy of the country.

Ladies and Gentlemen, what makes this day even more important is the fact that we will be joined by delegation from companies from with operations in Indonesia, East Malaysia and some parts of Africa.

Myself, together with officials from Department of Trade and Industry and our entity RBIDZ we have been engaged with many companies from different parts of the globe. We are delighted by the fact that there are CEOs from other countries are here with us today.

Programme Director, when we started this term of office we undertook to double our efforts to ensure that over the next five years we create more than 30 000 jobs through targeted foreign direct investments.

In addition, we set an ambitious target of creating more than 10 000 jobs through intensive export promotion.

I must however point out that this investment would not have been possible without the partnership involving the IDZ, Transnet, Umhlathuze Local Municipality and Department of Trade and Industry.

Programme Director, it is encouraging that to date, the IDZ has already signed investments of more than R11.9 billion representing different key sectors of the economy in the district. Thousands of job opportunities have been created permanently and others during construction.

Our message today is that – lets continue to work together and put this country on a new trajectory of socio-economic development.

We are cognisant of the fact that Transnet will be investing billions of rands over the next five years nationally into existing ports, rail and pipeline operations. Of this total infrastructure investment, R18.9 billion is allocated to KZN, of which R7.5 billion is for projects in Richards Bay.

In addition, we welcome the fact that Transnet has budgeted for a total of forty-five projects in Richards Bay over the next five years.

These include the Richards Bay expansion project, the conversion of Berth 702, the Bayview rail yard expansion, improvements to the export coal line transporting coal from Mpumalanga to the Port of Richards Bay, as well as Permanent Way maintenance.

Clearly, these are exciting times for the people of KwaZulu-Natal.

Another issue I wish to highlight is that in the past - the province’s port users highlighted concerns over issues pertaining to port governance, policies, as well as pricing.

In addition, evidence from port benchmarking has generally depicted South African ports as high on cost and low on performance.  The unveiling of the two helicopters demonstrates government’s commitment to finding long lasting solutions.

Last year, we were afforded the opportunity to host on behalf of the South African government the Ocean Rim Association – a forum of countries that are strategically located along the Indian Ocean.

We were particularly inspired by the theme: “IORA uniting the peoples of Africa, Asia, Australasia, and the Middle East through enhanced cooperation for peace, stability and sustainable development.”

Given the fact that IORA is sharply focusing on the oceans economy, we took a decision as the KZN Government to pursue interests in Oil and Gas industry.

This IDZ is being developed as a site and an anchor for energy infrastructure – especially Gas. As we move forward, we want to use our Black Industrialists Programme to drive radical economic transformation within the energy sector. We are determined to ensure that our people benefits from natural resources.

This province is blessed with natural resources too many to mention. We must work together to convert such resources into wealth that builds rural economies for the benefit of all the people of this province. This is what Wilmar Palm Oil Refinery will be doing.

Ladies and Gentlemen, I must hasten to point out that the two helicopters will help strengthen our programme focusing on Operation Phakisa. You will recall that this government initiative was launched here in this province and it is aimed at unlocking opportunities in the oceans economy.

President Cyril Ramaphosa announced in many platforms that Operation Phakisa will create millions of job opportunities. It is for these reasons that KZN government is finalizing plans to establish the KwaZulu-Natal Boatbuilding Park as part of a maritime vessel industrial complex at Bayhead in the Port of Durban.

The boatbuilding sector has been identified as having a potential in stimulating new investments, exports and job creation. The boatbuilding park is planned to be a world-class space for the production and repair of leisure and commercial boats. It will be the single largest boat building facility in Southern Africa.

It will also accommodate emerging and Black-owned boatbuilding companies and key suppliers. The project represents an investment of more than two hundred and fifty million rand and will have the capacity to produce up to one hundred and fifty boats annually, mainly for the export market. The Park will have Marine Skills Development Centre to provide on the job and practical training for the unemployed and youth.

Programme Director, as I draw towards conclusion, I wish to remind all of you that this ahead of the BRICS Summit last year, this venue hosted the BRICS Business Council Round-Table.  The event was attended international delegates including diplomatic corps.

The theme of the summit was “BRICS in Africa: Collaboration for Inclusive Growth and Shared Prosperity in the 4th Industrial Revolution”.  BRICS Business council’s Digital Economy Working Group deliberated on matters associated with the technological revolution.

Within the context of the 4th Industrial Revolution, KZN government has invested more than R35 million for this Techno Park. This tehno-park is the second of four science and technology innovation centres to be rolled out in this province.

Since the launch of this facility there has been a groundswell of optimism that this multimillion rand ICT infrastructure will create a knowledge-based society. The digital economy is rapidly becoming the economy of the future and ignoring this will leave us behind.

We will continue to market this techno park in many platforms. The focus is on attracting academic institutions, researchers, and innovators interested in the cutting edge technology to open offices around this facility as there is a plenty of land available.

With those words, I wish to thank you once again on behalf of KwaZulu-Natal Provincial Government.