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SACCI supports the position of the Department of Transport at today’s business dialogue that it is crucial to the process of economic development that South Africa adequately maintains and expand the transport and logistics network to support economic growth. Many challenges in the Transport sector exist and unique solutions are required to address bottlenecks and other impediments.

Programs outlined by the Minister aimed at achieving this goal include the national rollout of road asset management systems across all road authorities by 2014. The department also acknowledged that in order to raise the estimated R140 billion required for the maintenance and upgrading of South African road network, the participation of the private sector is essential. In addition, the DG also discussed the PRASA modernization process, the Moloto Rail Corridor, the coal haulage roads system in Mpumalanga in partnership with the private sector and the Durban,-Gauteng Freight corridor amongst others.

SACCI members used the opportunity to table a number of issues in a frank discussion with the team from the Department of Transport. Topics included the participation of the DoT in the SADC region, financing of infrastructure development, especially relating to the Gauteng Freeway Improvement Project, the impact of the proposed customs bill on the inland ports system, the lack of capacity on the rail corridors and the PRASA tender process. SACCI especially welcomes the commitment made by the DG and his team today to take an open door approach to business proposals and solutions by SACCI members.

Currently the low levels of cohesion between government and business do not facilitate a “Team South Africa” approach. Today’s engagement is a continuation of the process toward fostering a stronger partnership between business and Government. The SACCI Annual Convention on the 4th and 5th of October is the pinnacle event in this regard where SACCI, in the domestic session, will present a paper on the principles needed to guide infrastructure development in order to ensure private sector participation. The Gauteng Toll Road challenge is used as an illustration of the application of the aforementioned principles in the SACCI paper. Once consulted and adopted by SACCI members, the SACCI Infrastructure paper will form the basis for SACCI’s engagement with Government.