The Minister of Trade and Industry, Dr Rob Davies says the launch of the Musina Intermodal Terminal (MIT) is a huge boost to the regional economic integration and Special Economic Zones Programme.

The Minister was speaking during the launch of the Intermodal Terminal in Musina, Limpopo Province. Minister Davies said the MIT will contribute immensely to the regional economic integration that South Africa, the SADC region and the continent at large are working hard for.

According to Davies, the Musina Intermodal Terminal speaks to a number of policies of government and the promotion of regional economic integration. The terminal, which is aimed at the containerised cargo market and the transportation of mineral ores such as coal, iron ore, chrome, copper and sulphur, is a stepping stone to bigger projects within and around the newly- designated Musina-Makhado SEZ.

“The SEZ will significantly increase industrial production in the region. This will include steel and related inputs for producing steel and stainless steel, as well as increasing mining development and production. The SEZ will thus increase trade between South Africa and its neighbours. Regional integration will also be deepened,” added Davies.

He stated that the project was designed to improve trade which is key to the regional integration agenda. According to him, it further speaks to the goals of moving up the value chain and industrialisation of the country. Davies also announced that the Southern African Development Community tariff agreement with the east corridor would be finalised in July 2017 and said it was going to present new trading opportunities and open new markets for trading.

The Chairman of MIT Dr Morley Nkosi described the project as that which will accelerate economic growth and development in the region, driving increased foreign and domestic direct investment, increased value-added exports, creation of jobs, and the building of industrial clusters and regional industrial hubs.

He added that the intermodal movement of cargo from road to rail and vice versa will result in reduced carbon emissions, logistics costs and road congestion, as approximately 62 000 vehicle trips per annum are removed from the region’s roads.

The MIT is one of the key support facilities for the newly designated Musina-Makhado SEZ, especially the Energy and Metallurgical Cluster with an investment of over R40 billion in at least eight large scale industrial projects including a power station, a coking coal plant, ferrosilicon plant, a steel plant, and a stainless steel plant. Once fully implemented the zone is expected to create a total employment of more than 20 000.

MIT will in honour of Minister Davies awards ten (10) bursaries in logistics and transport to deserving students with matric from the area

 

Issued by Department of Trade and Industry