Address at the launch of the Kei Railway Project by Mr Jeff Radebe, Minister of Transport

Programme Director
MEC for Public Roads and Transport, Thobile Mhlahlo
Executive Mayor Councillor Ngcobo
Head of Department Eastern Cape, Ms M de Villiers
Transnet Freght Rail CEO, Siyabonga Gama
South Africa Rail Commuter Corporation (SARCC) CEO, Lucky Montana
Distinguished guests
Members of the media
Ladies and gentlemen

I am greatly honoured and proud to be part of this launch which brings with it change and hope in the lives of millions of our people in this province. The launch today is also a demonstration that our rail system continues to be one of the most important means of transport particularly for increased economic activities and development of our country.

This context is inevitably driven by a strong drive for the optimisation of rail transportation, increased investment and funding for sustainable growth of the rail sector as well as effective corridor utilisation for profitable inter-modal transportation. I am therefore delighted to see that the rail sector is beginning to respond to the challenges of our times in order to address an intensive economic participation of our people.

It is an open secret that in our country, the rail sector has for a long time carried less tonnes of total surface transport volumes, compared to road volumes. As a result, we are far advanced with the process of striking the balance between road and rail, particularly of cargos that should be moving on rail. We are currently implementing the National Freight Logistics Strategy that seeks amongst other things to integrate first and second economies, as well as supporting the integration of marginalised local economies with the main logistics corridors.

Our key objective is to reduce the costs of doing business and removing inefficiencies and reducing the impediments that the logistics system has placed on businesses and their long-term sustainability. We have also finalised our databank system which gives us valuable information in order to achieve this objective. Through these interventions we are also attempting to improve the living conditions of those isolated by geographic locations from the mainstream economies. We have embarked on an initiative to revitalise the branch-lines across the country particularly within the small towns as a way of activating the economic potential in the remote areas. As a result we have, identified a number of branch-lines to be revived such as the:

* KwaZulu-Natal midlands timber cluster
* Nkwalini line
* Eastern Free State maize cluster
* Mthatha to Amabele
* Belmont to Douglas
* Krugersdorp to Ramatlabama
* De Aar to Nakop
* Natal South Coast.

The basis for choosing these lines was on their social and economic significance in the areas where they pass. As a result, our intervention is already breading life to small towns that were otherwise neglected -thus opening up access to social and economic opportunities. We therefore strongly believe that the refurbishment of branch-lines will help boost the economic participation of small communities.

Programme Director, it is against this background that we are gathered here today to launch a refurbished Kei Rail line. Some of you may be aware that the Kei Rail line was built during the 1900s and was one of the most difficult lines to navigate because of the mountainous terrain. Today, the project represents an integrated development plan to stimulate and sustain socio-economic growth of this province with specific emphasis on the former Transkei region, the Rail/N2 corridor and the poorest area of this province to cater for the growing needs of our people.

The long-term vision is to develop a railway line in this corridor in order to facilitate a demand-responsive and cost-effective alternative mode of transport in regard to freight and passenger services between East London and Mthatha. To date we have witnessed three significant occasions relating to the Kei Rail Project. The first event was the Launch of the project itself held in August 2003, the highlight being the refurbishment of the railway line itself and bridges.

The second event was held in June 2004, to launch the Zam'kulungisa Industrial Node to be developed into an intermodal and multi-purpose facility for the handling of amongst others export/import containers and timber for both domestic and international markets. The third event was the start of the road construction for the Ugie-Langeni road linking Ugie Maclear and Hans Marenski Timber Plantation for ease of movement of timber products to the Zam'kulungisa Industrial Node.

I'm therefore delighted to note that the revitalisation of this line has achieved measurable progress since its launch in August 2003. About R133 million has been invested in this project with as many as 29 000 job opportunities to be created in the long term. We strongly believe that this project will boost passenger and cargo services within the Eastern Cape province and will also stimulate tourism growth and prove once again that rail transportation is a mass mover of our people and a backbone of our economic growth.

In particular, this project will stimulate economic activities where transport constraints and market access are the primary barriers to the sustainability and viability of businesses. It will also provide an improved transport option for existing economic activities and thereby allowing for increased profit and sustainability. In other words, this line will ensure that rail transport is ready to carry the expected number of tonnes that will be exported through
East London port when the timber forests in the Ugie/Maclear and Langeni are ready for harvesting.

It has for instance been projected that approximately 1,4 million metric tonnes of timber per annum from the Ugie/Langeni areas will be carried by Kei Rail for the next thirty years. The construction of the road-link between Ugie-Langeni and Nyibeni is also stimulating substantial excitement amongst the local population and business entrepreneurs -particularly with the potential for the construction of the Timber mill which will create a number of job opportunities in this region.

Programme Director, I'm therefore glad to note that the Rail Safety Regulator has recently granted an operating licence for this line which indeed paves a way for the commencement of the passenger services with 20 coaches which will run initially as a daytime weekend service. We will also ensure the integration of this line with other modes of transport in order to provide a seamless movement of cargo and passengers.

In conclusion, I would like to take this opportunity and express my appreciation to all parties involved for a job well done. This project would not be possible without my department, the Eastern Cape Department of Roads and Transport, Sheltam Grindrod, South African Rail Commuter Corporation (SARCC), Metrorail, Transnet Freight Rail and Rail Focus who are the important role players in this regard. May I also remind you that the success of this project will also depend on the local communities who must treat Kei Rail with the dignity and pride it deserve.

Viva Kei Rail Viva! Viva East Cape Government Viva!
Viva Abantu Basek'hlaleni Viva!

Ndiyabulela!

Issued by: Department of Transport
1 March 2008