Transportation
The new King Shaka International Airport strengthens KwaZulu-Natal’s position as a major logistics player.
The important role of good infrastructure in stimulating economic development and creating the climate for sectoral investment in the province was clearly outlined by the premier of KwaZulu-Natal in his state of the province address in February 2010. The 2010 FIFA World Cup South Africa™ has been a huge influence on the drive to create new infrastructure. As Dr Zweli Mkhize noted, ‘the new King Shaka International Airport, the Dube TradePort, Moses Mabhida Stadium and most major roads will be completed by May 2010’.
The premier went on to list the infrastructure projects that will take priority in the province in 2010:
• Ngula power-generation station
• port refurbishments
• road maintenance
• capital works at schools and hospitals
Since the advent of democracy in 1994, infrastructure development has been an important means of bringing social justice to poor communities. Schools, clinics and roads have been the major focus of spending but many of these facilities are now in need of maintenance. As a consequence, the 2010/11 provincial budget allocates 49% of infrastructural spend to maintenance.
The Provincial Treasury coordinates the province’s Infrastructure Delivery Improvement Programme (IDIP), together with the departments of Health and Education as clients, and the Department of Public Works, as the department that must do the work.
Storm damage and the need to improve facilities for tourism in the build-up to the 2010 FIFA World Cup South Africa™ were among the factors in the roll out during 2009 and 2010 of an upgrade programme for a range of coastal amenities and beaches in and around Durban. Umhlanga’s promenade was rebuilt (R55- million), Durban’s Golden Mile is receiving a facelift (R250- million) and beaches to receive attention included Umkomaas, Umgababa and Warner.
The province has the busiest highway in the country (N3), an extensive rail network and two of Africa’s most important ports. Richards Bay is the biggest bulk seaport on the continent, while Durban is its busiest container port. The province has one international airport and several regional airports.
KwaZulu-Natal’s geographic location gives it the edge with regard to logistics. The province is relatively close to the industrial and manufacturing strength of Gauteng province, and its position on the eastern seaboard gives it maritime access to countless destinations.
The N3 between Johannesburg and Durban is South Africa’s busiest national highway. The N2 is the major highway running through the province from south to north along the coast as far as Richards Bay, where it turns inland and north-west.
Between them, Durban and Richards Bay handle 78% of South Africa’s cargo tonnage. Durban’s annual throughput of containers is about one million, more than 60% of the country’s total. Gross tonnage of ships using the harbour amounts to about 100 million tons.
The railway line linking the coalfields of Mpumalanga with the Richards Bay Coal Terminal is vital to South Africa’s export industry.
Airports
Visitors to Durban had to start getting used to approaching the city from the north after the brand-new King Shaka International Airport (KSIA) opened in 2010. Designed to cater for 7.5 million passengers at a cost of about R7 billion, the airport will create about 270 000 direct and indirect jobs. Eighteen companies were involved in the construction of the airport.
A major thrust in justifying the building of a new airport was the desire to stimulate cargo volumes, particularly in the agricultural sector. As most of the province’s perishables used to be transported to Johannesburg first, this will create an entirely different set of conditions, and is likely to stimulate production and export volumes.
It is not clear what will become of the old airport south of Durban but it seems that it will not be used as an airport. KwaZulu-Natal has four regional airports: Oribi Airport (Pietermaritzburg); Margate on the South Coast; Ulundi in Zululand; and Mkuze in the north-eastern area. Virginia Airport north of Durban is the site of fixed-wing and helicopter pilot training.
Dube TradePort
This forms part of the King Shaka International Airport project. With the airport now a reality, the provincial government is moving to pass legislation in 2010 to create the Dube TradePort Corporation. This would entail the provincial government being the sole shareholder of the port, which it is hoped will help to transform the economy of the province. The budget allocated to this entity in 2010/11 is R526.9-million.
It is estimated that the impact of the Dube TradePort (DTP) and related schemes will boost KwaZulu-Natal’s economy by some R20.5-billion. The goal is to create a world-class logistics infrastructure development and a trade zone. Components of the DTP are King Shaka International Airport (KSIA), a trade port with a cargo terminal, a trade zone, a support zone, an agri-zone and an IT zone.
The trade zone of the DTP comprises a cargo terminal and a perishables centre with a capacity of 100 000 tons of cargo per year, and a trade-zone precinct for businesses operating within international value chains with tight schedules. This will include industries such as auto components, textiles, perishables and electronic goods.
The support zone is designed to provide office space, business services, accommodation and leisure facilities. Hotels and conference facilities will form part of the offering. Within the agri-zone, a fresh-produce market, pack houses, research centres and a training centre will all complement the primary aim of promoting and facilitating export. Tenants are expected to include farmers, co-operatives and large horticultural companies.
Harbours
Durban Port:
Transnet Port Terminals recently put in place two 285-ton rail-mounted gantry cranes to support the first phase of upgrading the container terminal at Pier 1. The cranes, purchased at a cost of R72-million, are expected to improve turnaround times of containers being loaded and unloaded at the terminal. The cranes can straddle three rail lines and load directly onto dedicated trailers.
Phase one of the Transnet Port Terminal’s programme has added capacity of 720 000 TEUs to the Port of Durban. The port is currently handling a total of about 1.5 million TEUs. In the course of 2009/10, feasibility studies are to be done to examine whether Salisbury Island can be converted to a facility able to cope with an additional 800 000 TEUs.
The harbour entrance-widening project, which began in 2007, was formally completed in February 2010. The new channel has been deepened and widened, allowing the likes of the Queen Mary II to enter Durban, which she did a month after the project was completed.
Richards Bay:
The phased expansion of the Richards Bay Coal Terminal (RBCT) continues apace. Transnet Freight Rail is committed to delivering more coal to the terminal as part of its upgrade. In 2009, RBCT exported 61.1 million tons of coal but the facility is on course to push capacity up to just over 91 million tons.
Richards Bay Industrial
Development Zone (RBIDZ):
The Richards Bay Industrial Development Zone has received the go-ahead to trade as an IDZ and consequently is on the look-out for investors. The provincial government has budgeted R57-million to support the mandate of the RBIDZ which is to make it a preferred investment destination. With unique logistical advantages and favourable investment conditions, it is likely that companies will be looking seriously at what the RBIDZ has to offer.
Rail
Work on expanding capacity on the railway line between the coalfields of the Highveld and Richards Bay is advancing. The long-term goal is for Transnet Freight Rail to carry 92 million tons per year by 2011, an increase of 20 million tons over the current capacity. New trains equipped to run without switching electrical systems are being acquired by the rail entity but in early 2010 it was reported that there had been some delays in the delivery of the locomotives. However, the improved security programme to reduce copper cable theft went ahead successfully. Altogether the programme is expected to cost R3.5-billion.
Roads
The national Department of Environmental Affairs gave the go-ahead for the N2 Wild Coast toll road in April 2010. The proposed road, between Gonubie near East London and the Isipingo interchange near Durban, has attracted criticism from environmentalists.
Most of the provincial Department of Transport’s
R 5 . 6 – billion budget for 2010/11 is dedicated to infrastructure. Within the budget, road infrastructure takes R3.72-billion: R1.9-billion for construction and R1.6-billion for maintenance.
Although 6 000km of rural roads have been built over the years, a backlog of 11 800km still remains. The MEC reported in 2010 that ‘the road network is deteriorating at a rapid pace... More than 70% of our road network is also beyond its design life and if not attended to immediately, will end up in a total state of disrepair’.
The provincial Department of Transport has a goal of rehabilitating 1 400 000 square metres of road and resealing 1 800 000 square metres of tarred road every year. The Zibambele contractor system, whereby a rural household is paid to maintain a section of road, is supporting some 40 000 people per year.
The South African National Roads Agency (Sanral) is introducing Freeway Management Systems and Intelligent Transport Systems at various locations throughout South Africa. In KwaZulu-Natal sections of the N2 and N3 highways are being equipped with more than 100 CCTV cameras and 18 viable message signs. Both systems are designed to reduce congestion and speed up response times when there are accidents or stoppages.
