Cape Town, 22 August 2002
CHAIRPERSON,
LADIES AND GENTLEMEN OF THE MEDIA,
DISTINGUISHED FRIENDS.
TRANSPORT INFRASTRUCTURE
TRANSPORT INFRASTRUCTURE IS CENTRAL TO THE SOCIO-ECONOMIC DEVELOPMENT OF COMMUNITIES AND NATIONAL THROUGHOUT THE WORLD. THIS REALITY BECOMES PAINFULLY EVIDENT WHEN NATIONAL DISASTERS OR OTHER CAUSES DESTROY, AMONGST OTHERS, ROADS, BRIDGES AND RAIL LINKS. WE HAVE SEEN EXAMPLES OF THIS IN DEVASTATING EFFECTS IN OUR COUNTRY AND NOW RECENTLY IN THE EASTERN PROVINCE.
EVEN IF INFRASTRUCTURE IS NOT DESTROYED, BUT MERELY ALLOWED TO DEGENERATE, THERE ARE SIGNIFICANT ECONOMIC CONSEQUENCES IN THE FORM OF EXCESS USER COSTS, AS WELL AS SOCIAL DISRUPTION. THE FAILURES OF INFRASTRUCTURE FUNCTIONS RADICALLY REDUCE QUALITY OF LIFE AND PRODUCTIVITY. PROVIDING AND, MORE IMPORTANTLY, MAINTAINING ADEQUATE TRANSPORT INFRASTRUCTURE TO MEET THE SOCIAL AND ECONOMIC NEEDS OF THE COUNTRY IS ONE OF THE PRIME FUNCTIONS OF GOVERNMENT.
GOVERNMENT IS COGNIZANT OF THE FACT THAT INVESTMENT IN TRANSPORT INFRASTRUCTURE IS A SIGNIFICANT CATALYST IN BOTH ECONOMIC AND SOCIAL DEVELOPMENT. OUR STRATEGIC GOAL IS TO PROTECT AND MAINTAIN THE CURRENT NETWORK. THIS REQUIRES CAREFUL TARGETING OF ROAD INVESTMENTS THAT MEET CLEAR STRATEGIC OBJECTIVES, EG. REINFORCING LINKS TO AGRO- AND INDUSTRIAL PRODUCTION AND DISTRIBUTION ZONES, PROMOTING HIGH VOLUME CORRIDORS FOR BOTH PASSENGER AND GOODS TRANSPORTATION, PROMOTING TOURISM, ETC.
THIS SHOULD BE SUPPORTED BY A FOCUS ON GREATER ENFORCEMENT OF OVERLOADING CONTROL, PROMOTING A BALANCE OF ROAD TO RAIL USAGE, AND INCREASED FUNDING FOR MAINTENANCE, ETC.
THUS, ACROSS MAJOR SECTORS FROM PASSENGER TO FREIGHT TRANSPORT WE ARE COMMITTED TO REDUCING INFRASTRUCTURE INVESTMENT BACKLOGS. SOME OF THE AREAS TO BE ADDRESSED WILL INCLUDE RURAL ACCESS ROADS, ROAD MAINTENANCE, AND STRICT ENFORCEMENT OF OVERLOADING CONTROL, IMPROVING GENERAL FREIGHT RAIL EFFICIENCIES.
IN THIS REGARD NATIONAL TREASURY HAS ALLOCATED MORE THAN 130 MILLION FOR INFRASTRUCTURE PROVISION AND MAINTENANCE. WE WOULD LIKE TO SEE A LARGE PORTION OF THAT GO INTO UPGRADING KEY TRANSPORT SECTORS SUCH AS RAIL AND ROADS.
ROADS INFRASTRUCTURE
ROADS ARE THE BACKBONE OF LAND TRANSPORT. THEY ARE A BASIC AND ESSENTIAL NEED, AND EVERY ROAD IN THE NETWORK IS IMPORTANT. ROADS ARE NECESSARY FOR PEOPLE TO ACCESS SERVICES AND WITHOUT ROADS THERE CANNOT BE SOCIAL OR ECONOMIC GROWTH.
DURING THE PAST FEW YEARS HUGE INVESTMENTS HAVE BEEN MADE IN ROADS. AN EXAMPLE OF THIS IS THE MAPUTO DEVELOPMENT CORRIDOR, STRETCHING FROM GAUTENG TO MAPUTO. WORK HAS ALREADY STARTED ON THE PLATINUM ROAD, WHICH WILL LINKS GAUTENG TO BOTSWANA. THE PLATINUM TOLL ROAD IS ABOUT 57 % COMPLETED.
THE LEBOMBO SDI FROM HLUHLUWE TO KOSI BAY IS ABOUT 98 % COMPLETE. MAJOR WORKS THAT WILL BE STARTED WITHIN THE NEAR FUTURE INCLUDES THE WILD COAST DEVELOPMENT CORRIDOR WHICH WILL START IN 2004 AS WELL AS THE N1 / N2 DEVELOPMENT CORRIDOR IN THE WESTERN CAPE. KOSI BAY TO PONTA DO OURO IN MOZAMBIQUE WILL FOLLOW LATER. THE TOTAL INVESTMENT WILL BE R3,8 BILLION AND APPROXIMATELY 8 000 JOBS WILL BE PROVIDED. GOVERNMENT'S TARGET WITH THE MAINTENANCE OF THE EXISTING ROADS IS TO REDUCE THOSE ROADS, WHICH ARE SEEN AS VERY POOR TO 5 - 10 % OF THE NETWORK.
A TOTAL OF R30 BILLION FOR ROAD IMPROVEMENTS DURING THE NEXT FIVE YEARS IS REQUIRED. SHOULD THE FUNDS BE AVAILABLE IT WILL BE UTILIZED AS FOLLOWS:
R7 BILLION WILL BE SPENT ON ROUTINE MAINTENANCE, R10 BILLION ON THE RESEALLING AND GRAVELLING OF ROADS, R4 BILLION ON REHABILITATION AND R3 BILLION ON RURAL COMMUNITY ROADS. ABOUT R6 BILLION WILL BE SPENT ON EXPENSES SUCH AS OVERHEADS.
THE R3 BILLION THAT WILL BE SPENT ON COMMUNITY ROADS WILL RESULT IN THE FOLLOWING:
WHEN THE MULTIPLIER EFFECT IS TAKEN INTO CONSIDERATION IT COULD BE AN AMOUNT 4 TO 6 TIMES HIGHER.
THE DEPARTMENT HAS ALSO INITIATED A COMPREHENSIVE STUDY TO DEVELOP AN INTEGRATED ROAD INFRASTRUCTURE DEVELOPMENT PLAN, WHICH WILL PROVIDE A STRATEGIC-LEVEL PLAN OF ACTION FOR IMPROVED ROAD INFRASTRUCTURE DELIVERY, WITH BUY-IN FROM KEY STAKEHOLDERS IN BOTH THE PUBLIC AND PRIVATE SECTORS, BY THE END OF 2002. THE STUDY WILL INTER ALIA, MAKE RECOMMENDATIONS FOR INSTITUTIONAL ARRANGEMENTS, FINANCING, ENFORCEMENT AND CAPACITY BUILDING. SPECIFIC OBJECTIVES INCLUDE;
IN ORDER TO ESTABLISH FOR OURSELVES A PLAN OF ACTION TO UTILISE THE FUNDS PROVIDED FOR ROADS OVER THE MEDIUM TERM, A SUMMARY OF SOUTH AFRICAN ROADS CONDITIONS HAS BEEN PREPARED AND THE IMMEDIATE FUNDING NEEDS ESTIMATED. THIS PLAN WAS ENDORSED BY CABINET LAST WEEK.
THE PLAN OF ACTION IS TO UTILISE THE FUNDS PROVIDED FOR IN THE FISCUS AND TO COMPLEMENT THESE WITH FUNDS DERIVED FROM THE EXISTING TOLL ROADS. THE FUNDS FROM THE FISCUS WILL BE UTILISED TO MEET THE IMMEDIATE NEEDS FOR MAINTENANCE, REHABILITATION AND PROVISIONING OF ROADS IN THE HISTORICALLY NEGLECTED AREAS (RURAL AREAS). IT IS FORESEEN THAT THE TOTAL NON-TOLLED ROAD NETWORK (PROVINCIAL AND NATIONAL) OF SOUTH AFRICA WILL BE FUNDED TO A LEVEL OF R30BILLION (MTEF), OVER A PERIOD OF 5 YEARS.
WE NEED TO BE MINDFUL THAT SOUTH AFRICAN CONTRACTING INDUSTRY HAS SHRUNK OVER THE PAST 15 YEARS OR SO, AND THE USE OF FUNDS SHOULD BE SUPPORTED BY THE MEANS AND CAPACITY TO DELIVER SERVICES ALONG COMPETITIVE PRICE LEVELS. HOWEVER, IT IS ALSO AN OPPORTUNITY FOR GOVERNMENT TO DEVELOP SMME'S AND PROMOTE AFFIRMABLE BUSINESS ENTERPRISES (ABE'S).
ADDITIONALLY, WE HAVE A FURTHER MULTIPLE INITIATIVE ENCOMPASSING:
BY THE END OF THIS CALENDAR YEAR WE EXPECT TO HAVE RESEARCHED SUFFICIENTLY TO PRODUCE A ROAD DEVELOPMENT PLAN THAT WILL IDENTIFY CONSTRAINTS IN THE DELIVERY OF ROADS AND WOULD PROPOSE MORE EFFECTIVE ROAD DELIVERY MECHANISMS.
IN THE OVERALL THE ROAD NETWORK WILL BE BASED AMONGST OTHERS ON:
POVERTY ALLEVIATION PROJECTS
THE DEPARTMENT HAS THROUGH ITS INFRASTRUCTURE PROJECTS STRIVED TO ALLEVIATE POVERTY. IN ADDITION, UNDER THE GOVERNMENT'S INTEGRATED RURAL DEVELOPMENT STRATEGY, THE DEPARTMENT WILL BE PAYING ATTENTION TO TRANSPORT NEEDS IN THE FOLLOWING NODES:
CENTRAL KAROO, UMKANYAKUDE, UGU, ZULULAND, INANDA, UKHAHLAMBA, EAST GRIQUALAND, KEI DISTRICT, OLIVER TAMBO, CHRIS HANI, GREATER SEKHUKHUNE AND EASTERN DISTRICT.
A TOTAL OF 107 PROJECTS WILL BE UNDERTAKEN AND AN AMOUNT OF R230 MILLION HAS BEEN ALLOCATED FOR THIS PURPOSE. THIS WILL RESULT OVERALL IN AN ESTIMATED 950 600 PERSON DAYS EMPLOYMENT. A TOTAL OF R51,6 MILLION IS SPENT ON LABOUR.
AT THE SAME TIME THE PROGRAMME HAS AS ONE OF ITS CORE COMPONENTS THE DEVELOPMENT OF SKILLS ESPECIALLY IN THE AREAS OF PROJECT MANAGEMENT, BUSINESS MANAGEMENT AND DESIGN. OTHER PROJECTS THAT ARE UNDERTAKEN UNDER THE PROGRAMME ARE AMONGST OTHERS WEED ERADICATION, NURSERIES FOR INDIGENOUS PLANTS FOR ROADS, ROAD SAFETY PROJECTS SUCH AS INFRASTRUCTURE IMPROVEMENTS AND EDUCATION AND WORK ON ROADS AND BRIDGES.
RAIL INFRASTRUCTURE
THE RAILWAY ALSO HAS ITS OWN BACKLOGS. THE COMMUTER RAIL SYSTEM HAS SIGNALING TECHNOLOGY THAT WAS INSTALLED 40 TO 50 YEARS AGO - AND IS EXCEEDINGLY DANGEROUS, AS WITNESSED BY THE SPATE OF ACCIDENTS WE SAW LAST YEAR AND EARLY THIS YEAR. IN RESPECT OF ROLLING STOCK, AND SEEN AGAINST AN INTERNATIONAL BENCHMARK OF 40 YEARS AS LIFE EXPECTANCY, THE COMMUTER RAIL SYSTEM BY THE YEAR 2005 WILL HAVE 1 100 COACHES EXCEEDING 40 YEARS IN AGE.
WITH A CURRENT CAPITAL INVESTMENT LEVEL OF R350 MILLION PER ANNUM THE SOUTH AFRICA RAIL COMMUTER CORPORATION (SARCC) HAS ESTIMATED THAT A MINIMUM OF R1, 1 BILLION INVESTMENT PER ANNUM IS NECESSARY TO AVOID CLOSURE OF THE SYSTEM IN 25 YEARS TIME (DUE TO INADEQUATE INFRASTRUCTURE). FOR A DYNAMIC GROWTH SCENARIO TO MEET NEEDS, AN INVESTMENT OF R 2 BILLION PER ANNUM WOULD BE NECESSARY.
ONE OF THE MAIN REASONS FOR THIS SITUATION IS THAT THE COUNTRY HAS FOR A LONG TIME BEEN FORGOING INVESTMENT IN TRANSPORT, ESPECIALLY INFRASTRUCTURE. HOWEVER, HAVING SAID THE ABOVE, A NUMBER OF INITIATIVES HAVE BEEN UNDERTAKEN TO ADDRESS THE SITUATION ALBEIT IN THE SHORT AND MEDIUM TERM.
LET ME BRIEFLY REPORT ON THE DEVELOPMENTS WE HAVE RECORDED. LET ME BEGIN WITH THE REFURBISHMENT OF ROLLING STOCK. THE SARCC IS ROLLING OUT A PROGRAM TO REFURBISH THE ROLLING STOCK. 88 OF THE TOTAL OF 176 COUCHES HAVE BEEN REFURBISHED IN THE PAST FINANCIAL YEAR AND THE NEXT 88 WILL BE COMPLETED THIS YEAR AT A TOTAL COST OF R440 MILLION FOR THE 176 COACHES.
MY DEPARTMENT HAS RECENTLY RECEIVED AN ADDITIONAL ALLOCATION OF R60 MILLION FROM THE NATIONAL TREASURY FOR THIS PURPOSE OUT OF THE CAPITAL INFRASTRUCTURE FUNDS WHICH WILL ASSIST THE SARCC TO FURTHER ROLL OUT THIS PROCESS. THIS WILL GO A LONG WAY IN ALLEVIATING THE NEED AND RESTORING THE DIGNITY OF OUR PEOPLE WHO DAILY MAKE USE OF TRAINS TO AND FROM WORK AND SCHOOL.
WE WILL ALSO EMBARK ON THE EXTENSION OF KHAYELITSHA COMMUTER RAIL LINE IN LINE WITH THE URBAN RENEWAL PROGRAM WHICH WAS ANNOUNCED IN THE PRESIDENT'S STATE OF THE NATION ADDRESS IN FEBRUARY LAST YEAR. THE PROJECT WILL ENTAIL THE EXTENSION OF EXISTING RAIL LINE IN KHAYELITSHA BY 4.5 KM TOWARDS BADEN-POWEL DRIVE.
IT WILL ALSO PROVIDE 4 ROAD INTERCHANGES, 2 STATIONS AND 3 PEDESTRIAN BRIDGES. THE RESULTANT RAIL SERVICES WILL ADDRESS THE INADEQUATE PROVISION OF PUBLIC TRANSPORT IN KHAYELITSHA. THE COST FOR THE TWO INITIATIVES WILL BE R119 MILLION.
CURRENTLY VARIOUS PROFESSIONAL TEAMS HAVE BEEN APPOINTED TO FINALISE THE DETAILED DESIGN OF THE RAILWAY NETWORK INFRASTRUCTURE. BOTH THE WESTERN CAPE PROVINCE AND THE CAPE TOWN METRO HAS BEEN SUPPORTIVE IN TAKING THE PROCESS FORWARD. PUBLIC PARTICIPATION PROCESS IS ALSO UNDERWAY.
THE UMTATA TO EAST LONDON RAIL LINE
THE EAST LONDON - UMTATA RAILWAY PROVINCIAL PROJECT, REPRESENTS AN INTEGRATED DEVELOPMENT PLAN TO STIMULATE AND SUSTAIN SOCIO-ECONOMIC GROWTH AND DEVELOPMENT OF THE EASTERN CAPE PROVINCE, WITH SPECIFIC EMPHASIS ON THE FORMER TRANSKEI REGION. IT WILL COMPLEMENT THE RAIL / N2 CORRIDOR, AND STIMULATE GROWTH FOR ONE OF THE POOREST AREAS IN THE COUNTRY.
A RECENT STUDY OF THE REGION HAS ALSO REVEALED CERTAIN CONSTRAINTS, WHICH IMPEDE ECONOMIC GROWTH AND DEVELOPMENT IN SECTORS SUCH AS, FORESTRY, AGRICULTURE, AND TOURISM. TRANSPORT WILL BE A KEY FACTOR IN UNLOCKING THE DORMANT POTENTIAL.
VARIOUS DEVELOPMENT PROJECTS HAVE BEEN IDENTIFIED IN THE ABOVE SECTORS AND INCLUDE TRANSPORTATION OF SOME 1.4 MILLION TON PER ANNUM TIMBER BY RAIL FOR THE NEXT THIRTY YEARS FROM THE UGIE/LANGENI AREAS AND OPTIMISING THE PROVINCIAL ROAD, RAIL AND PORT INFRASTRUCTURE TO GENERATE EMPLOYMENT AND REVENUE FROM LOCAL AND INTERNATIONAL MARKETS.
THE LONG-TERM VISION IS TO DEVELOP A MODERN STATE OF THE ART RAILWAY LINE IN THE CORRIDOR, WHICH WILL PROVIDE HIGH STANDARD AND INTEGRATED ROAD/RAIL/SEA/AIR FREIGHT, AND PASSENGER SERVICES.
THIS WILL IN TURN REQUIRE SUBSTANTIAL SPATIAL AND SOCIO-ECONOMIC RESTRUCTURING OF THE REGION AS WELL AS A MULTI-SECTORAL ECONOMIC DEVELOPMENT APPROACH IN THE ABOVE-MENTIONED SECTORS.
PROPOSED INVESTMENT IN THE SHORT TERM (PHASE 3) IS LIMITED TO THE REFURBISHMENT OF THE EXISTING RAILWAY LINE AND ASSOCIATED FACILITIES, THE IMPROVEMENT OF THE TELECOMMUNICATION AND TRAIN CONTROL SYSTEM, THE PROVISION OF A SHORTER UGIE-LANGENI LINK ROAD AND THE CREATION OF A NEW SIDING TO FACILITATE THE TRANSPORTATION OF PREDOMINANTLY TIMBER ORIGINATING FROM THE UGIE/MACLEAR AND UMTATA/LANGENI AREAS.
IN ADDITION TO THE ABOVE, PRELIMINARY DESIGNS OF AN ALTERNATIVE AND IMPROVED ALIGNMENT WILL BE CARRIED OUT TO CATER FOR LONG TERM NEEDS IN THIS CORRIDOR IN REGARD TO PASSENGER AND FREIGHT RAIL SERVICES. THESE DESIGNS WILL INCLUDE SUFFICIENT DETAIL OF THE PROPOSED NODAL DEVELOPMENT TO ENABLE THE PROVINCIAL GOVERNMENT TO INCLUDE THE CONCEPTS IN MORE DETAIL PLANNING PHASES SUCH AS IDP'S AND LDO'S AND ENABLE FUTURE PLANNING OF STATION AREAS, ACCESS ROADS AND LINKAGE WITH BUSINESS CENTRES.
CONCURRENT WITH THE ABOVE A FURTHER URBAN RENEWAL INITIATIVE IS TO EXTEND COMMUTER RAIL SERVICES FROM EAST LONDON TO KING WILLIAM'S TOWN TO PROMOTE INTEGRATION OF THESE KEY NODES AND GROWTH AREAS WITHIN BUFFALO CITY, WITH PARTICULAR EMPHASIS ON ACCESSIBILITY AND MOBILITY FROM THE MDANTSANE AND RURAL AREAS.
MABOPANE STATION
MY DEPARTMENT HAS PROVIDED AN AMOUNT OF R15 MILLION TOWARDS THE UPGRADE OF THE MABOPANE STATION. THE CITY OF TSHWANE IS ALSO MAKING A CONTRIBUTION TO THE DEVELOPMENT OF THE STATION.
THE CONSULTATION PROCESS WITH VARIOUS STAKEHOLDERS LIKE TAXI ASSOCIATIONS AND BUS COMPANIES PROVIDING FEEDER TRANSPORT SERVICES AT MABOPANE STATION IS UNDERWAY. HAWKERS AND FORMAL TRADERS AND COMMUTERS ARE ALSO CONSULTED WITH A VIEW TO DETERMINE THEIR NEEDS. IN TERMS OF OUR AGREEMENT WITH SARCC THE PROJECT IS SUPPOSED TO BE COMPLETED BY THE END OF DECEMBER THIS YEAR.
ON THE REGULATORY SIDE, THE RAIL SAFETY REGULATOR BILL HAS BEEN PASSED. SHORTLY, WE WILL BE IN A POSITION TO PROCEED WITH THE APPOINTMENT OF THE BOARD AND ROLL OUT THE IMPLEMENTATION OF THE RAIL SAFETY REGULATOR REGIME.
THE RAIL SAFETY REGULATOR BILL MAKES PROVISION FOR A RAIL SAFETY MANAGEMENT SYSTEM IN WHICH THE REGULATOR WILL PRESCRIBE STANDARDS, MONITOR AND ENFORCE COMPLIANCE WHILST AN OPERATOR WILL NOT BE ABLE TO OPERATE, UNLESS IT HAS A RAIL SAFETY PLAN DULY APPROVED BY THE REGULATOR AND COMPLIES FULLY WITH THE PLAN.
THE BILL ALSO MAKES PROVISION FOR GREATER ACCOUNTABILITY ON THE PART OF OPERATORS AND ALSO FOR GREATER TRANSPARENCY, BETTER ENFORCEMENT AND COMPLIANCE. THE BILL DEALS IN THE MAIN WITH OPERATIONAL SAFETY AND SECURITY OF PERSONS AND PROPERTY ARISING FROM OPERATIONAL SAFETY ISSUES.
I CAN ALSO INDICATE THAT THE DEPARTMENT IN CO-OPERATION WITH THE DEPARTMENT OF PUBLIC ENTERPRISES, TRANSPORT PUBLIC ENTITIES AND OTHER ROLE-PLAYERS HAS FINALISED A DRAFT NATIONAL RAIL TRANSPORT POLICY FOR SOUTH AFRICA.
THE POLICY DOCUMENT OUTLINES GOVERNMENT'S VISION AND OBJECTIVE FOR RAILWAYS AND IT WILL BE SUPPORTED BY A STRATEGIC RAIL PLAN WHICH WILL DETAIL AN ACTION FRAMEWORK TO ADDRESS THE KEY CHALLENGES AFFECTING THE RAILWAY SECTOR.
AVIATION INFRASTRUCTURE
EQUALLY IMPORTANT, OUR AVIATION INFRASTRUCTURE HAS RECORDED VERY IMPRESSIVE DEVELOPMENTS. AIRPORTS COMPANY OF SOUTH AFRICA (ACSA) HAS SPENT IN EXCESS OF R500 MILLION IN CAPITAL EXPENDITURE ON IMPROVEMENTS IN TERMINAL CAPACITY, RUNWAYS AND TAXIWAYS, ROADS AND PARKING, SAFETY, SECURITY, AND BULK INFRASTRUCTURE.
THE MORE SIGNIFICANT DEVELOPMENTS TO TAKE PLACE WAS THE OFFICIAL OPENING OF THE NEW INTERNATIONAL ARRIVALS TERMINAL AT CAPE TOWN INTERNATIONAL AIRPORT. IN ADDITION, THE NEW INTERNATIONAL DEPARTURES TERMINAL AND EXTENSIVE WORK HAS BEEN CARRIED OUT ON THE WIDENING AND IMPROVEMENT OF THE MAIN TAXIWAYS.
ANOTHER NEW TERMINAL TO OPEN DURING THE YEAR WAS THE MUCH AWAITED IMPROVEMENTS AND RECONFIGURATION AT DURBAN INTERNATIONAL AIRPORT. THIS GIVES THE AIRPORT THE NECESSARY PEAK HOUR CAPACITY UNTIL THE END OF THIS DECADE. AT THE SAME TIME NEW ADDITIONAL PUBLIC PARKING BAYS HAVE BEEN BUILT, THE FRONTAGE ROADS REALIGNED AND THE DROP-OFF ZONES IMPROVED.
IT MUST ALSO BE NOTED THAT EARLY THIS YEAR CABINET APPROVED THE RELOCATION OF DURBAN INTERNATIONAL AIRPORT TO LA MERCY TO BE KNOWN AS KING SHAKA INTERNATIONAL AIRPORT.
THE PROJECT WILL CREATE A LOGISTICS GATEWAY AS PART OF AN INTERNATIONALLY COMPETITIVE ENVIRONMENT WITH THE FOCUS ON JOB CREATION AND ECONOMIC DEVELOPMENT AS PART OF A GLOBAL SUPPLY CHAIN. PHASE ONE OF THE PROCESS WILL INCLUDE, INTER ALIA, INITIATION OF A CONCESSIONING PROCESS WHERE PRIVATE SECTOR INVESTORS WILL BE INVITED TO TABLE PROPOSALS FOR THE CONSTRUCTION AND MANAGEMENT OF KING SHAKA INTERNATIONAL AIRPORT.
PHASE TWO WILL INCLUDE ON THE ESTABLISHMENT OF A VALUE ADDED ECONOMIC ZONE, A CFYBERPORT, MODERN CARGO FACILITIES, MULTIMODAL FACILITIES (RAIL TO AIR) AND SPECIALISED PERISHABLE EXPORT FACILITIES FOR FRESH PRODUCE AND CUT FLOWERS.
AT THE SAME TIME THE INTRODUCTION OF KING SHAKA INTERNATIONAL AIRPORT WILL HAVE TO BE OPPORTUNELY PHASED WITHIN THE EXISTING ACSA AIRPORTS SYSTEM AND CONCOMITANT WITHY THE DEVELOPMENTS OF OTHER SECTORS OF BUSINESS, SUCH AS PASSENGER AND CARGO TRAFFIC, LIGHT INDUSTRY, IDZ ZONES AS COMMITTED BY THE GOVERNMENT INCLUDING KWAZULU GOVERNMENT. THE PROJECT WILL BE GOING INTO THE FEASIBILITY PHASE WITHIN THE NEXT FEW MONTHS
AT OUR MAIN INTERNATIONAL AIRPORT, JOHANNESBURG, THE NEW PUBLIC VIEWING DECK HAS BEEN COMPLETED ABOVE THE INTERNATIONAL TERMINAL GIVING THE GENERAL PUBLIC OPEN VIEWS OVER THE OPERATIONAL SIDE OF THE AIRPORT. WORK HAS CONTINUED AT SPEED ON ALL THE WORKS FOR THE NEW DOMESTIC TERMINAL (WITH A CAPACITY OF 10 MILLION PASSENGERS PER YEAR).
THIS DEVELOPMENT WILL INCLUDE NOT ONLY THE TERMINAL BUT ALSO THE REALIGNMENT AND EXTENSIONS OF THE ACCESS ROADS SYSTEM, THE NEW DOMESTIC PIER WITH 8 NEW LOADING BRIDGES, THE EXPANSION AND RECONFIGURATION OF THE APRONS TO THE SOUTH OF NEW TERMINAL AS WELL AS THE LENGTHENING OF THE LEAD-IN TAXIWAYS TO THIS AREA. AT THE SAME TIME WORK HAS COMMENCED ON EXPANDING THE EXISTING MULTI STOREY PARKADE WITH THE ADDITION OF AN EXTRA 1000 PARKING BAYS.
AT OUR SMALLER AIRPORTS, WHILST LESS WORK HAS BEEN UNDERTAKEN, MONEY HAS BEEN SPENT TO ENSURE THAT THE FACILITIES CAN MEET THE DEMANDS OF CAPACITY AND THE EVER-INCREASING IMPROVEMENTS IN SECURITY AND SAFETY STANDARDS. SIGNIFICANT WORK WAS DONE AT OUR PILANESBERG AIRPORT TO IMPROVE ITS INTERNATIONAL STATUS AND FOR THE RUNWAYS TO ACCEPT LARGER AIRCRAFT. DURING THE COURSE OF THIS FINANCIAL YEAR, UNTIL THE END OF MARCH 2003, ACSA HAS BUDGETED TO SPEND OVER R700 MILLION OF A CAPITAL NATURE. MANY OF THE DEVELOPMENTS THAT ARE CURRENTLY IN PROGRESS WILL BE COMPLETED.
WORK WILL ALSO COMMENCE THIS YEAR ON THE IMPROVEMENTS AND RECONFIGURATION OF THE PORT ELIZABETH INTERNATIONAL AIRPORT GIVING THE AIRPORT A 33% IMPROVEMENT IN CAPACITY. AT OUR SMALLER AIRPORTS WHERE THE CURRENT INFRASTRUCTURE IS MORE THAN ADEQUATE TO MEET THE FORESEEABLE CAPACITY DEMAND GROWTH, MONEY IS BEING SPENT ON UPGRADING AND REFURBISHMENT OF ESSENTIAL AIRSIDE FACILITIES AND ASSETS SUCH AS RUNWAYS, INSTRUMENT LANDING SYSTEMS, FIRE ENGINES, AND SECURITY EQUIPMENT ETC.
MARITIME INFRASTRUCTURE
CONSCIOUS OF THE FACT THAT ABOUT 90% OF WORLD TRADE IS CONDUCTED BY SEA, SOUTH AFRICA HAS EMBARKED UPON A FOCUSED POLICY OF PORT DEVELOPMENT. RICHARDS BAY, DURBAN, COEGA, PORT ELIZABETH, CAPE TOWN AND SALDANHA BAY ARE DESTINED TO PLAY A MUCH GREATER ROLE IN HANDLING OUR EXPORTS AND IMPORTS. IT IS THEREFORE ABSOLUTELY IMPERATIVE THAT WE ADDRESS LOGISTICAL PROBLEMS TO PROMOTE SEAMLESS MOVEMENT OF GOODS TO OUR PORTS AND MOVE GOODS FROM OUR PORTS TO OTHER DESTINATIONS ACROSS THE GLOBE IN GOOD TIME AND IN A COMPETITIVE WAY. WE HAVE PUT INTO PLACE WORKING GROUPS TO ADDRESS THIS ISSUE.
WE HAVE ALREADY ADOPTED A NEW PORTS POLICY IN TERMS OF WHICH LANDLORD FUNCTIONS HAVE BEEN SEPARATED FROM PORT OPERATIONS. WHILE LANDLORD FUNCTIONS WILL BE PERFORMED BY THE NATIONAL PORTS AUTHORITY, OPERATIONS WILL SEE GREATER PARTICIPATION BY THE PRIVATE SECTOR TO ENABLE OUR PORTS TO COPE WITH THE NEEDS OF THE ECONOMY AND THE INCREASING BUSINESS IN OUR PORTS. MY DEPARTMENT WILL PRESENT SHORTLY, A LEGISLATIVE FRAMEWORK, THE PORTS AUTHORITY BILL, FOR CONSIDERATION BY PARLIAMENT.
FREIGHT TRANSPORT
AS REGARDS FREIGHT TRANSPORT, THE TWO KEY STRATEGIC CHALLENGES CONTINUE TO FACE US. THESE ARE THE LACK OF EXPORT COMPETITIVENESS AND LOW LEVELS OF SYSTEM SUSTAINABILITY. THE ROAD FREIGHT INDUSTRY PLAYS A VITAL ROLE TOWARDS ECONOMIC GROWTH AND IT IS A BAROMETER OF AN INTEGRATION INTO REGIONAL MARKETPLACE AND A CRITICAL SUPPORT SYSTEM FOR TRADE WITH OUR NEIGHBOURING STATES
THE NATIONAL LAND TRANSPORT TRANSITION ACT (NLTTA) BROADLY RESPONDS TO THE NEED FOR LAND-USE PLANNERS TO EFFECT INTEGRATED TRANSPORT PLANS (ITPS) AS PART OF THE INTEGRATED DEVELOPMENT PLANS (IDPS). THE INTENTION IS TO FURTHER ENHANCE SPATIAL FLOW PATTERNS OF, AMONGST OTHERS, FREIGHT TRANSPORT TO MEET THE IDENTIFIED STRATEGIC OBJECTIVES.
WHILE BY LARGE GOVERNMENT HAS A ROLE IN PROVIDING ENABLING ENVIRONMENT FOR FREIGHT TRANSPORT FOR THE BENEFIT OF GROWTH IN THE NATIONAL ECONOMY, THROUGH MEASURES SUCH AS DEFINING THE FREIGHT NETWORK, MANAGING INFRASTRUCTURE LEVELS OF ROAD, RAIL, SEA PORTS AND AIRPORTS, AND CHARGING ROAD HAULERS FOR ROAD USE AND EXTERNALITIES, INDUSTRIES AND COMPANIES WILL ALSO NEED TO PROVIDE BEST SERVICES RESPONSIVE TO MARKET DEMANDS, SET COMPETITIVE PRICES AND COMPLY TO GOVERNMENT SET REGULATIONS AND REQUIREMENTS.
IN RESPONSE TO SOME OF THESE CONCERNS MY DEPARTMENT IS DEVELOPING A NATIONAL FREIGHT TRANSPORT POLICY AND STRATEGY WHICH WILL INTER ALIA, RESPOND TO:
THE POLICY AND STRATEGIC FRAMEWORK SHOULD ASSIST IN CLOSING THE "MISSING LINK" BETWEEN PERFORMANCE OF FREIGHT TRANSPORT AS IT RELATES TO THE ECONOMIC PERFORMANCE OF THE COUNTRY AT ALL SPHERES, AND TO THE INTERNATIONAL LEVEL BOTH PRESENT AND FUTURE.
KZN-OPTIMISATION OF RAIL BRANCH LINE
A RECENT STUDY HAS SHOWN THAT THERE IS POTENTIAL FOR DEVELOPMENT OF SMMES IN DISTRIBUTION TRANSPORT AND FEEDER SERVICES TO AND FROM RAIL. THE DECLINE IN RAIL BRANCH LINE TRAFFIC IN KWAZULU-NATAL HAS HAD A NEGATIVE EFFECT ON THE COMMUNITIES, WHICH USED TO BENEFIT FROM RAIL SERVICES. THE INCREASED USE OF LARGE LONG DISTANCE VEHICLES FOR DIRECT ROAD DELIVERIES HAS ELIMINATED THE SMALLER SMME TRANSPORTERS WHICH USED TO FEED THE RAIL SYSTEM AND HAS ENCOURAGED CENTRALISED SUPPLY OF GOODS FROM THE MAIN PRODUCTION CENTRES, THEREBY EFFECTIVELY DESTROYING LOCAL BUSINESSES IN RURAL TOWNS, SUCH AS BAKERIES AND POULTRY AND MILK PRODUCERS.
IT WAS ALSO NOTED THAT THERE IS A HIGH POTENTIAL SAVING IN ROAD MAINTENANCE, FOR THE PROVINCE, FROM REDUCING ROAD FREIGHT ON ROUTES PARALLEL TO RAIL BRANCH LINES.
THE PROJECT WILL EXAMINE THE POTENTIAL FOR DEVELOPMENT OF EACH LINE, BY INDUSTRY, COMMODITY AND SERVICE AND RECOMMEND OPTIMISATION STRATEGIES.
RURAL TRANSPORT
THE DEPARTMENT HAS DEVELOPED A FIRST DRAFT DOCUMENT ON A NATIONAL RURAL TRANSPORT STRATEGY, TO ADDRESS RURAL TRANSPORT AND DEVELOPMENT ISSUES IN SOUTH AFRICA. THE TWO STRATEGIC RECOMMENDATIONS ARE:
NON-MOTORIZED TRANSPORT
IN ORDER TO ENSURE A BALANCED PROVISION OF TRANSPORT SERVICES, THE DEPARTMENT WILL CONTINUE ROLLING OUT BICYCLES PROJECTS IN RURAL AND PERI-URBAN AREAS. PLANS ARE UNDERWAY TO ENSURE SAFE CYCLING BY INCORPORATING NON-MOTORIZED INFRASTRUCTURE IN RURAL TRANSPORT INFRASTRUCTURE PROGRAMMES. STUDIES ARE UNDERWAY TO INCORPORATE OTHER FORMS OF NON-MOTORISED TRANSPORT SUCH AS ANIMAL DRAWN CARTS.
PUBLIC TRANSPORT
PUBLIC TRANSPORT IN SOUTH AFRICA IS STILL DRIVEN BY DISPARITIES OF PREVIOUS SPATIAL DEVELOPMENT. COMMUNITIES, WHICH ARE HISTORICALLY, DISPLACED TRAVEL LONG DISTANCES TO POINTS OF ECONOMIC PRODUCTION AND ARE THUS MUCH VULNERABLE TO COST-DRIVERS IN PUBLIC TRANSPORT, AMONGST OTHERS, FLUCTUATIONS IN ENERGY COSTS.
OVER THE MEDIUM TERM, THE CURRENT PRACTICE OF PAYING SUBSIDIES TO BUSSES AND RAIL IN EXCLUSION OF THE TAXI INDUSTRY WILL BE REDESIGNED AND RE-ALIGNED TOWARDS A PUBLIC TRANSPORT SUBSIDY SCHEME TARGETED AT COMMUTERS. THIS WILL REDIRECT SUBSIDY BENEFITS DIRECTLY TO THE COMMUTER RATHER THE OPERATOR.
THERE ARE HOWEVER BUDGETARY CONSTRAINTS WITH REGARD TO BOTH BUS AND RAIL SUBSIDIES AND I AM BUSY ADDRESS THIS ISSUE WITH MY COLLEAGUE, THE MINISTER OF FINANCE.
TAXI RECAPITALISATION PROCESS
TURNING TO THE TAXI PROCESSES. THE DEMOCRATIZATION PROCESS WAS FINALIZED IN SEPTEMBER 2001 WITH THE ESTABLISHMENT OF SANTACO AND THE VARIOUS PROTACO'S. THE LEGALISATION PROCESS IS ALSO PROGRESSING WELL AND GOVERNMENT AIM TO FINALISE THIS PROCESS BY THE END OF DECEMBER 2002.
GOVERNMENT IS STILL COMMITTED TO THE TAXI RECAPITALISATION PROCESS, AND IT IS DEFINITELY GOING FORWARD. GOVERNMENT AND THE INDUSTRY AREAS CURRENTLY IN THE PROCESS OF IRONING OUT THE REMAINING ISSUES RELATING TO THE EMS-SYSTEM.
PROVINCES ARE ALSO CURRENTLY COMPLETING STRATEGIES ON OPERATING LICENSES, WHICH WILL CONCRETIZE OUR APPROACH TO ROUTE-BASED OPERATIONS.
SKILLS DEVELOPMENT WITH TETA
TRANSPORT DEVELOPMENTS IN NEPAD AND SADC
TRANSPORT HAS A CRITICAL ROLE IN THE IMPLEMENTATION OF NEPAD. IT IS CRUCIAL IN CREATING AN EFFECTIVELY COORDINATED AFRICAN RESPONSE TO GLOBAL MARKET CHALLENGES ARE MARKET ACCESS, MOBILITY AND SYSTEMS INTEGRATION. SOME OF THE INTERVENTIONS THAT DEPARTMENT IS CONSIDERING INCLUDE: