Address by KwaZulu-Natal MEC for Economic Development and Tourism Michael Mabuyakhulu, at the launch of the Bell Articulated Dump Truck, Richards Bay

Programme Director,
The CEO of Bell Equipment Group, Mr Gary Bell,
The Mayor of UMhlathuze, Cllr Mbatha,
The Mayor of UThungulu, Cllr Mchunu,
 Ladies and gentlemen.

It is an honour for us to have been invited to the launch of what is the next phase in the technological advancement of the Bell Equipment range.

Indeed, all of us gathered here today are unanimous that the continually changing times in which we live require constant innovation. Equally, the ever changing climate conditions brought upon us by global warming dictate that in whatever we do, we take due care such that we do not upset the delicate balance of nature.

It is for this reason, that in coming up with the all new E-Series ADT range, the design gurus at Bell Equipment aimed to keep fuel emissions at a bare minimum.

Programme Director, we are aware and appreciate that the location of Bell Equipment’s principal manufacturing plant here in Richards Bay brings with it immense employment opportunities.

Our excitement at this launch today is further underscored by the fact that as a developing state, our country always looks favourably upon initiatives that might lend further impetus to our vision of altering our rather skewed economic landscape. In this regard, our government last year adopted a National Infrastructure Plan through which we intend to transform our economy while simultaneously creating significant numbers of new jobs, and to strengthen the delivery of basic services.

This plan – which also supports more integration among African economies – is premised on the need to drive spatial and regional integration such that we bridge the disconnect between areas that have, over time, come to be known as economic hubs and those that remain largely neglected swathes with little or no economic activity.

In this regard, our government has identified 18 key Strategic Integrated projects (SIPs). These SIPs, ladies and gentlemen, cover social and economic infrastructure across all nine provinces, and as we have already mentioned, have an emphasis on lagging regions of the country.

These SIPs include catalytic projects that have been identified as having the tenacity to fast-track development and growth.

For us as the province of KwaZulu-Natal, Sip 2, which is about further unlocking the potential of the Durban-Free State-Gauteng logistics and industrial corridor has been identified as our citadel of excellence.

In this regard, our main focus areas on Sip 2 are as follows:

  • Building Rail capacity to Mpumalanga and Richards Bay
  • Improve access to Durban’s export and import facilities.
  • N2-Wild Coast Highway which improves access into KwaZulu-Natal and national supply chains.

Work has already started on a massive logistics corridor stretching between Durban and the central provinces of the Free State and Gauteng. Most of the projects that form part of the second Strategic Infrastructure Project (SIP 2), also known as the Durban-Free State-Johannesburg Logistics and Industrial Corridor, are still in the concept or pre-feasibility stage, but construction has already started on several projects.

The aim of these projects and others which form part of SIP 2 is to strengthen the logistics and transport corridor between South Africa's main industrial hubs and to improve access to Durban's export and import facilities. It is estimated that 135 000 jobs will be created in the construction of projects in the corridor. Once the projects are completed a further 85 000 jobs are expected to be created by those businesses that use the new facilities.

Programme Director, we take cognisance of the pronouncements made by the CEO of Bell Equipment, Gary Bell at the opening the second Public-Private Infrastructure Forum where he commended our New Growth Path as "an ambitious plan designed to enhance growth, employment creation and equity."

In the words of Mr. Bell: "We see this infrastructure programme as promoting broader industrialisation of the economy, through the use of locally manufactured components and supplies. In this context infrastructure must also drive skills formation, particularly in critical areas such as engineers, artisans and technicians. As the only sizeable local manufacturer and distributor of mining, construction, agriculture and infrastructure equipment necessary for these projects, we reaffirm our pledge to support the various government programmes."

Indeed we welcome such valiant affirmations from our corporate partners as the kind of energy that can only take the country forward.

Programme Director, it would be remiss of us to ignore the immense opportunities presented by the northern corridor of the province. Richards Bay – which is fast proving itself to be a force to be reckoned with – remains a centerpiece in our province’s plans to decentralise development and ensure the distribution of economic activity to all corners of our districts. Along with Durban – we have moved to focus on this area to achieve among others, regional industrial economic zones, Special Economic Zones (SEZs), aerotropolis and a number of infrastructure programmes.

Certainly, Programme Director, the advent of the multi-modal transport logistics at Dube Trade Port which is poised to transform this zone into one of the world’s modern aerotropolis – provides further reason for economic activity to move northwards of the province.

Ladies and gentlemen – we want underscore the fact that regional integration remains a vital cog in the growth of not only the South African economy but that of our African peers as well. According to the Africa Competitiveness Report 2013, one of the possible blights to an otherwise positive outlook for the growth of the continent is the lack of long term competiveness.

The report also singles the need to facilitate trade, building better infrastructure, investing in growth poles as but some of the key ingredients to the continent’s sustained prosperity.

Programme Director – we earlier on alluded to our government’s plans to bolster economic development as hinging on successful regional integration. The Africa Competitiveness Report 2013 reinforces this view. Indeed, the report notes, "developing adequate and efficient infrastructure will assist African economies to increase productivity in manufacturing and service delivery, contribute to improvements in health and education and help deliver more equitable distribution of national wealth.

Also, generally public-private investments aimed at accelerating export facing-industries and their supporting infrastructure, growth poles represent important ways of building productive capacity and boosting regional integration through the attraction of investment."

We could not agree more with the view that at the heart of addressing this inherent weakness is the need to ensure the delivery of wider social and economic benefits. Ladies and gentlemen, it is heartening to learn that the generally tough global economic outlook notwithstanding, Bell Equipment earlier this year announced ambitious plans to further extend its operations in Africa through investment in infrastructure, particularly in areas of service, parts and technical support.

 It must be borne in mind that this plant alone currently produces some 5000 machines a year and supplies the rest of Africa and Asia with a full range of Trucks, Haulers, Loaders, Tractors, Backhoes and Custom equipment. The company also signalled its intentions for future infrastructure development in South Africa; with a view of penetrating the mining industry.

This stance is certainly welcome.

But we also expect that with this growth will come an added element of economic growth, job creation and also an element of skills transfer and empowerment to our burgeoning entrepreneurs and SMMEs in the manufacturing and distribution sectors. Programme Director, by the company’s own admission, Bell is well positioned to meet Africa’s heavy equipment needs.

As the government of KwaZulu-Natal we would like to say that we fully share in this enthusiasm and have every of bit of confidence in their abilities. We would like to again congratulate Bell Equipment on the launch of their new E-Series ADT range.

I thank you!

Province

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