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Rail infrastructure needed to facilitate container growth

ON TRACK FOR TOMORROW The revitalisation of rail will ensure economic growth for South Africa

SUPPORTING URBANISATION Jack van der Merwe highlights that around 2 000 people move into Johannesburg from rural outer-lying areas each week and infrastructure needs to be developed and maintained in order to withstand this

INVESTING IN INFRASTRUCTURE R850-billion is to be spent over the next three to five years on infrastructure development as part of government’s 18 strategic integrated projects

8th November 2013

By: Carina Borralho

  

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During the next 25 to 30 years, the number of containers moved between Durban and Gauteng will be almost ten times what the figure currently is, says head of government’s steering committee for the country’s Gauteng- based aerotropolis project, Jack van der Merwe.

He estimates that the number of containers will rise from 1.7-million a year to about ten-million a year. Therefore, the development of a railway line development between Durban and Gauteng is essential, as “continuing to rely on trucks to transport increasing loads will be disastrous for the road infrastructure”, said Van der Merwe at the monthly Transport Forum at the University of Johannesburg, in October.

The forum, which involves strategic interest group sessions, saw experts in the locomotive, railway, transportation and logistics sectors gather to discuss infrastructure and other developments in South Africa.

The forum highlighted that in 2012, R850-billion was allocated by government for infrastructure development over the next three to five years as part of the country’s 18 Strategic Integrated Projects (Sips).

Sip 2 includes the development of a logistics corridor that will run between South Africa’s main industrial hubs Durban and Gauteng, passing through the Free State, says the Department of Transport (DoT).

Sip 2 aims to strengthen the logistics and transport corridor to improve access to Durban’s import and export facilities and integrate the Free State’s industrial activities into the corridor.

“The existing railway line, which is in poor condition, has a speed limit of 50 km/h, while the new railway line will have a maximum speed of 120 km/h and will serve mostly the freight industry,” said Van der Merwe, noting that the revitalisation of rail would ensure economic growth for South Africa.


Financial advisory firm Deloitte corporate advisory leader André Pottas, also speaking at the Forum, said the revitalisation of the corridor was “long overdue”, emphasising that “the timing is crucial especially if you look at the potential threat or competition that the Durban port is going to face over the next 20 years. “It is, thus, vital for Durban that the port and logistics link to Gauteng are as efficient as possible”.

He added that the shift from road to rail would reduce the cost of doing business as well as carbon emissions, while increasing productivity and efficiency.

The route between Durban and Johannesburg is the busiest long-haul freight transport corridor in South Africa, while analysts expect the newly implemented e-toll system in Gauteng will also see many industries moving away from using road transport, as the cost of delivering goods by road will increase.

As a result of Sip 2, the Durban port is set to be Southern Africa’s premier logistics platform, said Pottas, noting that the existing port provided connections to 53 international destinations and access to local distribution networks.

An estimated R75-billion dig-out port is planned in Durban.

The corridor would open a passage for more containers to pass through the Durban port, thereby, ensuring efficiency and productivity to facilitate the export and import of larger quantities with faster turnaround times to and from growing economies such as China, said Van der Merwe.

This will also ensure job creation, not only in the building and management of the railway, but also in the industry and new businesses that will develop near the railway, which will open doors for invest- ment opportunity. The DoT expects 135 000 jobs to be created by 2050.

Having an established railway system as well as a port with high capacity capabilities would also encourage China and other countries to continue to invest in South Africa, thereby, strengthening the local economy, said Van der Merwe.

The corridor programme also includes the construction of logistics hubs and terminals within the corridor, supportive local area land-use plans and the development of an aerotropolis around OR Tambo International Airport, in Kempton Park, which is expected to create 700 000 jobs in different sectors.

“An aerotropolis has an airport city as its core and is surrounded by clusters of aviation-related enterprises,” explains Ekurhuleni municipality.

The municipality in 2011 announced its intention to transform Ekurhuleni into a functioning aerotropolis, with rail devel- opment being a major part of the project.
The development of rail infrastructure will see that surrounding enterprises can access the OR Tambo International Airport easily and enable large quantities of goods to be transported.

The aerotropolis project will be the first of its kind in Africa.

“The project will be formed on the basis of the strength of the OR Tambo Inter- national Airport and will be the long- awaited restructuring tool that will put South Africa on the world map, transforming Ekurhuleni into a hub for Africa,” said Van der Merwe.

Aerotropolis town planner and urban designer Dr Marinda Schoonraad says a strong accent should be put on efforts to create a unique identity, which will put the concept of the aerotropolis across to the African context.

Van der Merwe said the aerotropolis project was an attempt to effectively manage the rapid urbanisation taking place within Gauteng.

“The urbanisation that is taking place requires new infrastructure to be built as well as job creation,” he added, highlighting that around 2 000 people moved into Johannesburg from rural outer-lying areas each week.

For the 18 Sips to be feasible, the consideration of critical enablers was necessary prior to starting. These, Van der Merwe said, included supply lines for construction materials such as wood, cement, steel and bitumen, port charges, water prices and other tariffs and levies.

In April, the South African government proposed a reduction in port charges of up to R1-billion. The acquisition of modernised rolling stock, such as locomotives and wagons to meet the growing demand, has also been planned.

“South Africa’s rail, port and pipeline company Transnet and the Passenger Rail Agency of South Africa’s locomotives and wagons are encouraged to be manufactured locally, and government highlights the importance of continuing to do so, thereby, ensuring job creation and local investment,” said Van der Merwe.

Edited by Creamer Media Reporter

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