Freight, logistics a source of jobs
THE Gauteng government is trying to improve freight movement in order to grow the economy and create new job opportunities.
As the economic hub, the province is positioned for the movement of goods in the country and the region.
This also forms part of its transformation, modernisation and re-industrialisation (TMR) programme.
The province’s Department of Roads and Transport hosted a provincial freight and logistics summit recently to discuss plans and strategies to ensure sustainable and easy mobility, as well as the sector’s contribution to economic growth, transformation and modernisation.
The summit was held under the theme “Optimising Freight to Support Economic Growth”.
Addressing delegates, transport MEC Ismail Vadi said the seminar serves as a platform for all stakeholders in the province to continuously evaluate progress in making freight move faster, efficiently and smarter.
Vadi said Gauteng, as a key node to ports and SADC, experiences a number of constraints.
“These emanate from transport, freight logistics, supply chain and enforcement perspectives. The constraints can be overcome by developing intermodal facilities, rail and road infrastructure, intelligent transport systems and law enforcement.
“With a fairly well-developed road infrastructure, the province is well placed to receive, sort and rapidly deliver goods and services.
“Inefficiencies and deficiencies on the other hand severely retard competitiveness resulting in the relocation of economic activity to more favourable locations,” Vadi pointed out.
In 2013, the provincial government set out a strategic framework to support economic growth by optimising transporting goods and people. This framework – a blueprint for the next 25 years – is known as the ITMP25. Key to the programme of the TMR is the movement of freight through rail. This includes developing major rail-based freight logistics hubs, strategically located on the periphery of the Gauteng region’s urban core.
Vadi said it is estimated that about 60% of the country’s imports and exports are either delivered at or originate from Gauteng.
It is an important source and destination for international trade and is considered the gateway to the continent.
The provincial government is working with its partners, Transnet, the private sector, municipalities, law-enforcement agencies and other role players to establish mechanisms to shift the movement of freight from road to rail.
“Among the key interventions identified include the establishment of freight logistics hubs as part of the broader Durban, Free State and Gauteng Logistics and Freight Corridor Development, a strategic infrastructure project.
“These facilities include development and upgrades to the City Deep, Tambo Springs, Pyramid, Rosslyn, Sentra Rand, West Rand and Vaal logistics hubs.”
The City Deep terminal construction is under way and the Tambo Springs one is set to commence at the end of 2018.
Feasibility studies have been conducted for the West Rand and Vaal terminals while developments are proceeding for the Automotive City in Tshwane, Vadi said.
Summit looks at moving goods by rail instead of road transport