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Radebe: Blacktop Holdings Annual Customer Function (18/11/2004)

18th November 2004

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Date: 18/11/2004
Source: Ministry of Transport
Title: Radebe: Blacktop Holdings Annual Customer Function


Remarks by Jeff Radebe, Minister of Transport at the Blacktop Holdings Annual Customer Function, Caesars Palace, Johannesburg

Master of ceremonies,
Invited guests,
Ladies and Gentlemen:

It gives me pleasure to address you on the occasion of the 21st Blacktop Customer function, an event that coincides with the 21st anniversary of Blacktop itself. As with all 21st birthdays, a special note of congratulation for reaching maturity is in order; especially given that you have emerged from humble beginnings to become the largest empowerment company in the road construction sector.

As tonight is a celebration of success, let me share a few remarks with you about the challenges we face in transportation in general, but with an emphasis on the road sector. I hope that we will be able to map out a path of future cooperation between the public and private sector through partnerships and joint ventures. At the same time, we must work in a way that encourages other, younger empowerment firms in the road construction and civil engineering sector to play a greater role as well.

The transport industry in South Africa faces a number of challenges. These challenges could be loosely classified to include transformation and empowerment in the technical and sharp-pointed areas of activity such as engineering and construction; and the provision of well-structured, long-endurance, and cost-effective road surfaces to meet the wide variety of traffic needs without limiting economic expansion and growth in particular areas. Another challenge relates to ensuring that the ancillary elements of road management, such as drainage systems, environmental protection and enhancement, as well as user-friendly signage, engineering safety measures, and thoughtful town, regional and national planning all coalesce into a larger system of an effective, manageable and beneficial road network system that promotes freight movements, public transport, tourism and of course commuting traffic of all forms of road transport. Critical to all of our efforts must be to promote adequate and appropriate infrastructure and the widest application of employment-creating construction methods.

Government has responded to these challenges in a number of ways that I don't have to go into too much detail. But these also include the development and implementation of policies and frameworks such as the Road Infrastructure Strategic Framework, the Integrated and Sustainable Rural Development Programme, the various provincial Land Transport Frameworks and of course the national Land Transport Strategic Framework and the Integrated and Sustainable Rural Development programmes.

Coming back to the road sector, it is instructive to note that besides catering for an increasing number of the general travelling public through passenger road transportation mediums, the road network is used by an increasing number of cargo carrying vehicles. This not only strains the capacity of the road network but also produces pressures in the planning and budget processes. This in turn leads to a shift in the allocation of resources to both, deal with easing capacity constraints as well as keep up with a maintenance programme of an increasing asset-base of road infrastructure.

Clearly in order to create a sustainable road network, policy development has to keep pace with developments in the economy. It is clearly not sustainable for the road infrastructure to continue to carry certain types of cargo over long distances whilst the rail network continues to run at levels well below its capacity. From a macro-economic viewpoint this imposes added costs to the economy and increases the cost of doing business. But the country needs to consider the relationships between road and rail, and even air to some extent, from a perspective that encourages intermodalism, rather than contramodalism, where road is set against rail and vice versa. The nature of our economic development, the requirements to integrate the rural and marginal economies into the mainstream, and the direction we need to develop should stress how these different modes all contribute and inter-relate.

Partly to face these challenges the government set up the National Roads Agency whose task has been to find innovative ways of funding the road infrastructure network. I think we can all justly appreciate the highly competent way the Roads Agency has gone about developing a sophisticated, technology and science driven approach to road pavement construction, management and maintenance.

Just a glance at the National Roads Agency's Roadworks Classification Manual that informs the road network management system shows how complex the actual science of road construction and maintenance is. From the detail about factors affecting pavement performance, the definitions about works categories, classes and types, to the analysis of flexible and rigid pavement systems, the layman is bombarded with a language that boggles the mind. Somehow or another, the sheer complexity of your field of endeavour needs to be more widely appreciated in the public mind. Perhaps then we will have a better understanding of the enormity of the planning and budget challenge we face in this country.

The increased usage of the road infrastructure has further increased the maintenance backlog. In order to cope with this backlog government continues to examine a whole range of funding options, including the public-private partnerships in the form of Toll Concessions. Government shall continue to review and explore various other funding options in order to meet the challenges of providing a safe, efficient and cost effective road network. Simply put, the recent Medium Term Budget Statement highlights the role that an effective road network must play in the continued development of our country, and increasing allocations for road maintenance and the construction of new roads has been identified as an area of special attention.

In all this government is acutely aware of its other objectives least of which is the advancement of black economic empowerment. The Expanded Public Works Programme, including the municipal road projects, are not only primary areas where employment-intensive methods can be used, but they also serve to empower whole communities, as we have seen so well in the Amadiba area of the Eastern Cape for example.

The road network is going to play a pivotal role in the movement of the large number of visitors to our country during and after the 2010 world cup. In finalizing the transportation plan for the event, a lot of attention shall be paid to upgrading and maintaining the road infrastructure.

In conclusion Blacktop, and other empowerment companies, should play a significant role in the various maintenance programmes that arise out of the backlog. The company should also act as an enabler for the execution of the Expanded Public Works Programme through partnerships with small and medium contractors and also through mentorships. And whilst companies may be small today, the conditions are being laid for growth and development so that you will become the leaders and giants of tomorrow. In recent engagements I have had with a number of my African transport minister colleagues, some have specifically asked that we as South Africa should share our expertise in all areas of road construction and management. I am committed to making this a reality because many African countries, just like ourselves, are suffering the consequences of inadequate or highly pressured road systems. Likewise, many countries require significant road maintenance, upgrade and even construction programmes. It is my intention to ensure that wherever possible opportunities will be created for South Africa companies, and especially black empowered road engineering and construction companies, to be able to participate in many of these continent-wide projects in a suitably humble and patriotic way.

We can make this happen. Your company, Blacktop, has developed a fine reputation and has made a strong contribution. Together with other firms in this critical area of our economy, and in partnership with other African countries and companies, we will make Africa's road network something to be proud of, not only in the near future, but far into the distance!

I thank you and congratulations once again on your achievements!

Issued by: Ministry of Transport
18 November 2004
Source: Department of Transport (http://www.transport.gov.za)
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