SPEECH (NOTES) BY HEAD OF THE KWAZULU-NATAL DEPARTMENT OF TRANSPORT, DR. KWAZI MBANJWA AT THE FREIGHT EMPOWERMENT SUMMIT AT THE GOLDEN HORSE CASINO, PIETERMARITZBURG ON THURSDAY, 28TH JULY 2005
 

All Protocol Observed.

• As background to the proceedings of this Summit today, I would like to provide you with a brief overview of the Scope of Freight Transport and Logistics in KwaZulu-Natal, including all modes of transport that are used for the movement of goods in the province.
   
• To start with, Freight transport in all modes, is one of the most important economic activities in the province contributing to about 11% of the GDP of the Province.
   
• Freight transport provides employment opportunities, not only in the transport operational sector, but in a wide range of associated activities, including vehicle and ship supply and maintenance, forwarding, warehousing and storage, manufacture of equipment and components, etc.
   
• KwaZulu-Natal is home to some of the largest manufacturers of equipment in earthmoving, materials handling, and manufacturers of trucks and trailers.
   
• The volume of freight transport through KwaZulu-Natal is continually increasing, as the logistics systems for imports and exports from the interior of South Africa and the neighbouring countries, direct cargo through our road and rail corridors to the ports of Durban and Richards Bay.
   
• Countries that use KwaZulu-Natal ports include Zimbabwe, Zambia, the Democratic Republic of Congo, Botswana, Lesotho, Swaziland and Malawi.
   
• Road freight between the ports of Durban and Richards Bay, and the interior of South and Southern Africa on the N3 and N2 national routes, amount to approximately 23 million tons per annum.
   
• The N3 National route between Durban and Gauteng is the busiest road freight route on the continent.
   
• The traffic flow on the N3 is very high, and there are road safety concerns due to climatic problems at locations such as Van Reenen's Pass, which are to be addressed by longer term plans for realignment of the route.
   
• Traffic flow at peak periods on the Mariannhill-Peacevale section of this route is extremely high, and there are concerns about the danger of blockage of this single point of entry to Durban for heavy road freight vehicles.
   
• The Townhill section of the N3 has long been identified as a danger area for freight vehicles, and several engineering options have been proposed and are to be considered.
   
• The number of road vehicles registered in South Africa rose from about 7.2 million in 2003 to nearly 7.5 million in 2004, an increase of 4% year on year.
   
• In KwaZulu-Natal there are about one million registered vehicles of which approximately 38,000 are trucks and 20,000 are heavy trailers.
   
• The vehicle population in the Province is increasing at about 4% per year, which will amount to approximately 25% over the next 5 years, posing serious challenges for the province as providers and provincial "managers" as such, of the road system.
   
• The rail system in KwaZulu-Natal includes the main line from Gauteng to Durban, which is the main rail link for general cargo and container traffic from inland areas to the port of Durban.
   
• The line carries approximately 7 million tons of cargo per year and provides the main access route to the inland dry port of Kaserne, at City Deep in Johannesburg. The line is the major rail route for export steel and coal via Durban.
   
• The COALINK railway line to Richards Bay is one of the most efficient bulk export lines in the world carrying about 80 million tons of coal, ore and timber. The line is a crucial element in the logistics of South Africa's export trade with the Far East, and current plans are to update the equipment and capacity for anticipated future demand.
   
• There are also several important rail branch lines within the Province, handling a total of approximately 2 million tons per annum.
   
• The inland lines handle mainly timber to the coastal processing plants, and the coastal lines handle sugarcane, dolomite and some timber.
   
• Current planning by the KwaZulu-Natal Department of Transport, the National Department of Transport and Spoornet is directed to exploring the potential for concessioning some branch rail line operations to private sector operators, in an attempt to revitalise the use of rail for commodities from rural areas in the province.
   
• Durban and Richards Bay are the two most important ports in South Africa and the SADC region, for containers, break bulk and bulk liquids, and dry bulk export cargoes respectively.
   
• In 2004, the Port of Durban handled approximately 33 million tons of general cargo, 22 million tons of petroleum products, and about 1.7 million Containers.
   
• The car terminal at Durban harbour handled 1.3 million tons of vehicle imports, and 420,000 tons of exports.
   
• Major commodities exported from the Port of Durban were 2 million tons of steel and 1 million tons of coal, while 2 million tons of wheat, maize and rice were imported.
   
• Richards Bay exported 79.6 million tons of bulk cargo.
  
  The cargo logistics, shipping, ports and maritime industries are major economic activities in KwaZulu-Natal, and there is need to ensure the provision of training and development facilities to support these industries.
   
• Some 30% of the Port of Durban freight traffic is generated by local industry, and the balance is transported to and from the industrial areas in the hinterland.
   
• The R 4.5 billion expansion of cargo handling facilities at the Port of Durban is proceeding according to schedule and when completed will increase container capacity to 2 million TEU's per year. Current plans include construction of a new passenger terminal and deepening and widening the entrance channel.
   
• The crude oil and refined petroleum product pipelines between the Port of Durban and inland areas are currently operating at capacity. With current rapid expansion of road transport cargoes and the consequent increase in road usage and traffic congestion, there is an urgent need for increasing the capacity of the provincial pipeline network. Pipeline tonnages on the Gauteng/Durban/Gauteng route are approximately 6 million tons per annum.
   
• For the KwaZulu-Natal Department of Transport, the major freight transport challenges and issues to be resolved are:

• The increasing rate of deterioration of the provincial roads.
   
• The continuing shift of cargo from road to rail, on particularly rail branch lines.
   
• The increasing road accident rate involving Heavy Goods Vehicles.
   
• The worsening congestion of the land side approach routes to the ports of Durban and Richards Bay.
   
• The need to expand the training and development of people in KwaZulu-Natal to fill the employment and business opportunities in freight transport in all modes.
   
• The contribution of freight transport to the HIV/Aids pandemic.
   
• Improved airfreight capacity for Durban and KwaZulu-Natal. Airfreight from Durban International Airport is very low. This is due mainly to a lack of air freighter capacity between Durban and Johannesburg, and the competition from over-night road transport operators that offer lower rates and efficient services for international export and import air cargo. 

• In conclusion, the Freight Transport Policy adopted by the KwaZulu-Natal Provincial Government in 2004, and the resulting Strategic Framework for Freight Transport, will provide the policy and planning mechanisms for resolving these issues.
   
• This will be achieved by optimising the future effectiveness of the freight transport systems of the province. Implementation of this Freight Transport Strategy will maximise SMME opportunity, with a clearly defined emphasis on BEE development.

I thank you.

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