TRANSPORT

THE MATTER OF PERSPECTIVE

Research authors, Doctors Jean-Paul Rodrigue and Theo Notteboom assert, in The Geography of Transport Systems, that the economic importance of the transportation industry can be assessed from both a macroeconomic and microeconomic perspective. At the macroeconomic level, the transportation system and mobility mechanisms benefi ts are linked to a level of output, employment and income within a national economy. In many developed countries transportation accounts for between 6% and 12% of the Gross National Product (GDP). In these instances, logistics costs can account for between 6% and 25% of the GDP and the value of all transportation assets, including infrastructure and vehicles, can easily account for half the GDP of an advanced economy. At the microeconomic level, transportation is linked to producer, consumer and distribution costs. The importance of specifi c transport activities and infrastructure can be assessed for each sector of the economy. Usually, higher income levels are associated with a greater share of transportation in consumption expenses. Transportation accounts, on average, for between 10% and 15% of household expenditures, while it accounts for around 4% of the costs of each unit of output in manufacturing.

SA’S TRANSPORT ROLE PLAYERS

In SA, the Department of Transport (DoT) is responsible for the legislation and policies for rail, pipelines, roads, airports, harbours and the intermodal operations of public transport and freight. It is also responsible for conducting sector research, formulating legislation and policy to set the strategic direction of subsectors, assigning responsibilities to public entities, regulating through norms and standards, and monitoring and implementation. Chapter 4 of the National Development Plan (NDP) calls for the economic infrastructure as the foundation of social and economic development. In short, the policy’s objective is a result of ‘a competitive and responsive economic infrastructure network of government’. Transnet, South African Airways (SAA) and the South African Express (SAX) fall under the Department of Public Enterprise, as these are classifi ed as commercial role players. Transnet, a state-owned company (SOC), is responsible for a number of transport modes and sites that ferry goods and services across South Africa and into and out of the country. In fact, this month the SOC celebrated 110 years of existence. Its mandate is to contribute to lowering the cost of doing business in SA, enable economic growth and ensure security of supply by providing appropriate port, rail and pipeline infrastructure in a costeffective and effi cient manner. Furthermore, Transnet is the largest freight logistics company in the country enabling competitiveness, growth and the development of the country’s economy by delivering reliable freight transport and handling services that satisfy customer demand. Transnet National Ports Authority (TNPA) regulates and manages the seven ports from Richards Bay to Saldanha through which products such as coal, manganese, iron ore, motor vehicles and agricultural goods are exported and imported. The port terminals through which containers, ferried across the country by rail and road, are loaded and offl oaded, and other container terminal sites such as the one at City Deep in Johannesburg and Durban are under the management of Transnet Port Terminals (TPT). Transnet Freight Rail (TFR) is responsible for the rail net that links SA to Botswana, Zimbabwe, Zambia and Swaziland and provinces, cities, towns and regions within SA. TFR runs the longest train in the world – with 375 wagons – between Thabazimbi and Saldanha and from Sishen to Saldanha. Lastly, the fuel that is utilised across SA at various fuel outlets is carried through pipelines managed by Transnet Pipelines (TPL). As you can see, through TFR, TPT and TPL, Transnet contributes greatly to economic growth.

THE FUTURE OF SA TRANSPORT

South Africa has one of the most developed transport infrastructures on the African continent. The holding of the Soccer World Cup in 2010 provided a further impetus to the transportation infrastructure through the development and improvement of airports and road infrastructure. Unfortunately, the rail infrastructure did not benefi t to that extent. The use of other transportation modes such as drones and scooters have proved useful during election time in many countries such as the Democratic Republic of Congo (DRC), which has a vast terrain. In SA there are already individual entrepreneurs who use their own personal vehicles to transport commuters to the airport, documents and hardware from one place to another and so on. The possibilities are there for many, for small and medium enterprises to invest in such modes of transport. In general, transport systems have to be effi cient and provide the desired economic and social opportunities and benefi ts the world has opened for humanity – in order to be a ‘Reliable Mover of the Economy’. Equally, and inversely, ineffi cient and defi cient systems provide economic costs or opportunities that may never be recovered – and thus become ‘Immobilisers of the Economy’.

DR POPO MOLEFE

CHAIRPERSON OF TRANSNET

R21BN INVESTMENT PROGRESS FOR SALDANHA BAY IDZ

The Saldanha Bay Industrial Development Zone has to date attracted more than R21-billion worth of private investments. The Zone’s CEO, KAASHIFAH BEUKES, provides updates on the progress so far of this long-term initiative

The Saldanha Bay Industrial Development Zone Licencing Company SOC Ltd (SBIDZ-LC), South Africa’s first and only Special Economic Zone (SEZ) located within a port, is a new, open 356ha space catering specifically to the oil and gas, maritime fabrication, marine repair, logistics and related support services.

Situated in the largest and deepest natural port in the southern hemisphere, it operates as a Freeport offering streamlined customs processes and bespoke facilities and services to its tenants and operators.

The SBIDZ, designated as a Customs Controlled Area (CCA) and Freeport, allows for duty and VAT-free entry of any foreign goods intended for re-export. This means we can ensure ease of operations for zone users and enable them to import, store and manufacture goods (including processing, cleaning and repair) without being bound by various time and economic restrictions. The SBIDZ is the single largest project the government has embarked upon in the Western Cape and is the “most significant area of spatial development potential within the West Coast district”.

Our aim over the next 25 years is to create a vibrant hub of opportunity, job creation and sustainable growth utilising the special economic zone (SEZ) legislation as a catalyst.

COOPERATION WITH MAJOR STAKEHOLDERS

We work with many organisations, businesses and institutions operationally and strategically.

We are immensely appreciative of the support given over the years by the Department of Trade, Industry and Competition and the Department of Economic Development and Tourism in the Western Cape. Their support in the establishment of the zone has really been part of our success in turning around an undeveloped area into a world-class operation.

The Saldanha Bay Municipality (SBM) and Transnet National Ports Authority (TNPA) are also quite critical to the zone’s investment attraction potential and sustainable regional economic development impact.

The SBM and SBIDZ-LC have launched several new developments recently, which included the SME Co-Lab Centre. A shared workspace for the Saldanha Bay business community, the Centre provides offices, meeting rooms, free Wi-Fi, printing facilities and access to laptops. The Centre also offers access to networking sessions with relevant public and private sector stakeholders and partners. The Co-Lab has attracted more than 1 500 SMME visits and engagements since it opened.

Also, our SBIDZ skills programmes have created over 1 800 individual training opportunities over the last four years. Enterprise development has completed a first-of-its-kind Oil & Gas SMME Readiness Assessment.

Various projects to upgrade bulk and transportation infrastructure were completed over the last few years. As the port is TNPA’s responsibility and domain, the SBIDZ symbiotic relationship ensure that what is offered to investors and stakeholders is aligned with the plans and projects of the TNPA.

ATTRACTIONS AND BENEFITS OF THE SBIDZ

There are several.

Western Cape is an established hub for boat and shipbuilding. More than 80% of the country’s total ships, boats and other floating structures come from here, and approximately 70% of boat building companies are located in the region. The region is the petroleum trading node for the country. The ports in the Western Cape handle 59% of SA’s total petroleum product exports and 47% of SA’s total petroleum product imports.

It is ideally situated to service East and West African sea traffic and provide a linkage point for African and international markets. It is perfectly placed to accommodate and service a wide range of vessels.

We have a solid maritime regulatory and policy framework in place to drive the development and efficient management of the industry. The African Continental Free Trade Area (AfCFTA) agreement makes this increasingly important.

Then there is our Innovation Campus. We asked ourselves: “How do we create a thriving, inclusive and resilient maritime and energy industry?”

Our research showed that the successful oil, gas and maritime SEZs encouraged research, development, and innovation (RD&I) capabilities. Clusters that drive innovation have cutting-edge knowledge centres that create and seize opportunities and do so with sustainability and inclusivity in mind always.

These thriving SEZs are able to rapidly respond to shifting global trends and