Opening debate on his Budget vote in the National Council of Provinces on Friday, he said it was necessary to restructure the system to make sure the flow of freight did not act as a restraint on economic growth, employment and sustainable development.
"The need to remove blockages within our ports and rail systems is an urgent necessity."
A critical area of focus was "a seamless logistics system, characterised by an efficient flow of freight that promotes rather than undermines our economy's competitiveness".
"The poor performance of the transport system, as a key input sector in the economy, is imposing huge costs on business activity in South Africa.
"However, the focus on freight logistics is not only about removing blockages within our systems; it is also about development of new strategic corridors within the country and the Southern Africa region as a whole."
Another challenge was to establish an effective, efficient, safe, reliable and co-ordinated public transport system.
"We are obliged... to ease the burden of a costly transport system to the public. Thus, I have instructed the department to complete a review of the subsidy system.
"This will include the question of subsidisation of taxis; for, as you know, more than 60% of commuters use minibus taxis, whilst of the estimated two million migrant workers in this country, 850 000 use unsubsidised public transport."
A critical area also needing attention was the construction and maintenance of roads in rural areas, including access roads.
"The lack of infrastructure and reliable public transport in rural areas continues to deny socio-economic opportunities, sustainable livelihoods, education and recreation to millions of people who cannot realise their full potential.
Radebe said "some progress" had been made in the use of labour-intensive road-building methods.
"For example, the South African National Roads Agency has begun to redirect increasing amounts of its expenditure (about 30% at present) towards roads construction and maintenance through labour-based methods.
"We are also encouraging provinces to ensure a similar orientation.
"Labour-intensive technologies are fundamental to our efforts aimed at employment creation, skills development and creating critical assets for communities and for the economy."
Radebe told the House many of the country's roads were in such a poor condition that he would "consider reclassifying certain strategic roads from provincial to national, if this is the only way to ensure the allocation of sufficient funds for upgrade and maintenance work". - Sapa
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