Download SATC - Department of Transport

ADDRESS BY THE MINISTER OF TRANSPORT, MS DIPUO PETERS, AT THE
35th SOUTHERN AFRICAN TRANSPORT CONFERENCE (SATC),
CSIR,
INTERNATIONAL CONVENTION CENTRE
04 JULY 2016
Programme Director: Professor Wynand Steyn
SATC Board Chair: Kenny Kistan
Members of the SATC Board
Chair and Members of the SATC Organising Committee
Acting Director-General of the Department of Transport
Distinguished Guests
Ladies and Gentlemen
It is with pleasure for me to be given another opportunity to come and address this
august occasion on behalf of the government of the Republic of South Africa, I
wish to once more welcome all of you this year, with a special recognition to all our
international guests present and feel very honoured and privileged to deliver the
opening remarks for this year’s edition of the 35th Annual Southern African
Transport Conference (SATC).
1
This year marks the marks the 40th anniversary of the National Youth Day of June
16, 1976 student uprising. South African is celebrating the heroism of students who
stood up to the apartheid state as they fought for their rights and the liberation of
South Africa from racial oppression and subjugation. It is the struggles like the
June 16, 1976 amongst others that correctly warrants us to make continuous
introspections on the quality of lives of our people, the socio-economic imperatives
and whether we as the transport sector do contribute to this important agenda.
Programme Director,
The transport sector is an essential component of the economy with strong effects
on development and the welfare of the populations. When transport systems are
efficient, they provide socio-economic opportunities and benefits that result in
positive multiplier effects such as a better accessibility to markets, employment
and additional investments. When transport systems are deficient in terms of
capacity or reliability, they can have an economic cost such as reduced or missed
opportunities.
Since the 1994, under the ANC led government the transport sector has
undergone a major transformation, the transport sector has mostly been
deregulated and transport policies have been modified to permit market
determined decisions, enterprise autonomy and private participation ownership
and management of the transport business.
As a Region and Continent, we need to prioritise transport infrastructure and
operations, amongst those priorities should be roads, railways, sea and airports.
As the Region and Continent is predominantly rural, taking into consideration landlocked countries railways and road infrastructure becomes key. For example, rural
roads can help prevent maternal deaths through timely access to childbirth-related
care, boost girls’ enrolment in school as well as increase and diversify farmer’s
2
income by connecting them to markets. Roads are the predominant for freight and
passenger transport in Africa. It should not be a challenge to secure cost-effective
improvement of road networks and maintenance; the user-pays principle remains
the solution.
As a Region and Continent, we never adequately prioritise issues of Climate
Change. It is worth noting that, transport accounts for about 60% of global oil
consumption, 27% of all energy use and 23% of world CO2 emissions. With
motorization rates in the rise, this share is expected to grow dramatically.
Air pollution and road safety are as much important and critical to analyse and
prioritise. More than 1,2 million people are killed and up to 50 million are injured
on the world’s roads every year and the low and middle-income countries account
for 90% of the deaths although they own just half the world’s motor vehicles. Urban
air pollution largely linked to transport also kills an estimated 800 000 people each
year. The biggest question that we need to unpack is “Where is the Region and
the Continent on these figures”. The Conference seriously needs to accurately
assist in this regard.
Programme Director,
I want to emphasise that, as the developing world rapidly urbanizes, there is an
opportunity to build safer, cleaner and more efficient and accessible transport
systems that reduce congestion and pollution, facilitate access to jobs and lower
transport energy consumption.
The poor and inadequate state of Africa’s transport network hampers effective
competition on the global market. Effective transport networks are a key
component of investment climate, enabling people and goods access to markets
and reducing the cost of doing business. Intra-African trade stands at less than
11% of all African GDP and Africa’s share of the world trade is only 2%. Africa’s
3
challenges are not only lack of investment in infrastructure but also the distance
between the hinterland and the ports. Efficiency of ports and logistics is particularly
important for Africa’s 15 landlocked countries, whose average transport costs are
nearly 50% higher than for coastal economies.
Further common challenges are:

Poor linkages amongst transport modes in Africa cause long delays and
raise costs in the movement of international commodities

Infancy logistical service in Africa is of major concern

Lack of capacity and skills development in the freight handling sector

Under investment in port, rail and pipeline infrastructure on the continent
and lack of advance planning

Poor port infrastructure, old equipment, poor ICT skills, and other technical
and management skills
Programme Director,
Today I stand here proud to give an update as to where we are as South Africa in
contributing to the Region and the Continent as a whole.
The South Africa government, proudly led by the ANC, has developed this Blue
Print in making planning and where we want to go as a Country easier by 2030. It
articulates the following on how South Africa should position itself with the rest of
the world:
“We are Africans.
We are an African Country.
We are part of our multi-national region.
We are an essential part of our Continent.
Being Africans, we are acutely aware of the wider World, deeply implicated in our
past and present.”
4
The Plan warrants us to note that, the shift of power towards developing countries
provides South Africa, the Region and the Continent maximize our regional and
international influence over the next 20 to 30 years, and we must grab this
opportunity with both hands. It calls on us not to loose grip of sustaining our
relationship as South Africa with Brazil, Russia, India and China while promoting
regional and global integration. It is important to fully utilize structures such as the
Southern African Development Community (SADC) and the Common Market for
Eastern and Southern Africa (COMESA) to engage business, labour and civil
society on all transport sector issues, in my view, these structures are underutilised or not visible nor communicated adequately for public knowledge on
transport related matters. Elimination of trade barriers towards free trade within in
the region still needs to be worked on, to mention but a few is tariffs, quotas and
non-tariff barriers.
Programme Director,
Transnet Freight Rail infrastructure represents about 80% of Africa’s total rail
network, with a total network of 30 400-track kilometers and 20 953-route
kilometers and a core network of 12 801-route kilometers. Transnet is undertaking
a major capital investment programme worth R336 billion with an operating
expenditure of over R420 billion. On the other hand the Passenger Rail Agency of
South Africa (Prasa) constitute a passenger rail network of 22 300 km, with a
current investment programme of R51 billion on its rolling stock modernization
programme of 600 new trains (3600 vehicles) over 10 years, with a subsequent
total of R123.5 billion to be invested in 20 years, 65 000 jobs intended to be
creation and 65% local content. The general intention is to expand passenger
railway service to the region, as the rail freight services have already started these
types of investments, one being the Swazi Rail Link.
5
It is with noting that, 5 new sets of passenger trains have already been delivered
from Brazil to Wolmerton Rail Depot North of Pretoria. I will be launching their
operation in October 2016 (October Transport Month). Prasa has also started the
construction of a new R1 billion Rail Manufacturing Factory in Dunnottar Park, East
of Johannesburg. It is through this Rail Manufacturing Factory that South Africa
has been mandated through the African Union to be the Rail Manufacturing Hub
for the Continent.
Having noted that South Africa’s foreign trade is largely dependent on maritime
transport, the South African Government through the Nine Point Plan led by the
South African President, Honourable Jacob Zuma, mandated the transport sector
to be part of a process of quantifying the value of the South African oceans. This
process indicated that, the value of our oceans have a potential of contributing R54
billion to the South African GDP and an estimated 316 000 jobs created. It is with
noting that private sector has committed R289 million for boatbuilding
infrastructure at the Port of Durban, 9 tugboats are being build to the value of R1,4
billion creating additional 200 jobs. Ladies and Gentlemen, more than R700 million
has been earmarked for Supplier Development Plan entered into between
Southern African Shipyards and Transnet local suppliers. In the same vain I have
issued a Ministerial Directive under Section79 of the National Ports Act for a
manganese and container terminals to be established at the Port of Ngqurha,
notwithstanding a subsequent Ministerial Directive for the Port of Saldanha to
accommodate further private sector participation for oil rigs repairs. It is therefore
important that our Regional and Continental counterparts position themselves as
strategic partners in this regard.
On 26 June 2013, Cabinet approved the establishment of a Border Management
Agency (BMA), of which the Department of Transport is part, to amongst others,
integrated the operations or functions of all government departments and agencies
that operate at South African Ports of Entry (PoEs). The aim of this Agency is to
consolidate the management of border security and control into a single agency
6
that will have the overall mandate over the border environment. A draft BMA Bill
was approved on 26 September 2015 and the process of tabling it to Parliament
is at an advance stage. As the Department of Transport, this Agency will enable
us to promote and unsure free flow of traffic through our borders as well as
enhancing beneficial trade with our SADC neighbouring countries. We envisage
the BMA to start operating on 01 April 2017.
Programme Director,
With regards to Civil Aviation, we as the South African government, will continue
to engaging with the African Continent to ensure that we have an African Single
Air Transport Market by 2017 and open skies for African countries in honour of the
Yamoussukro Decisison. To date we have developed the African Single Air Travel
Market Action Plan, which will culminate in allowing African Airlines to operate
freely within Africa without impediments and to date we have entered into bilateral
with six African countries in this regard.
Lastly as stated in my previous address that, in this year’s Conference I would like
to see an Action Plan emanating from the 34th Southern African Transport
Conference in order for all of us to implement the recommendations and solution
as per the difference papers and presentation made in this Conference. This Plan
of Action I am yet to see and would be very happy, if not this year, I finally receive
it for the next Conference of 2017. The Plan, I believe would assist us as
counterparts to commit to all the recommendation and solutions proposed in order
to avoid this Conference being a talk shop.
With these few words, I wish you all a fruitful 35th Southern African Transport
Conference 2016
I thank you
7