of Mpumalanga Freight and Logistics Forum and Freight Data Bank
9 October 2006
Programme Director
Comrade Fish Mahlalela
Ministries of both Mozambique and Swaziland
Members of the freight transport industry
Distinguished guests
Members of the media
Ladies and gentlemen
Thank you very much for affording me the opportunity to address this special
occasion and I am indeed privileged.
Let me first start by recognising the approval of the National Freight
Logistics Strategy by Cabinet in 2005, as a blueprint that eventually came into
existence in order to assist addressing the various challenges faced by the
freight sector both at system and firm level in the republic, the region,
continent and the global market. The final approval of the strategy was a great
achievement indeed.
In my 30 May 2006 Budget Vote speech, I raised the fact that corridor
development is a core project and it being a core project means that
commitment, intensive effort and focal attention should be given to it, in
order for it to be able to address issues like the imbalance of road and rail,
the divide between first and second economy, to mention but just a few. The
Mpumalanga Freight and Logistics Forum when discussing issues pertinent to
freight operations and corridor development should always have the
understanding that "corridors are the lifeblood of our economic growth" and
their planning should, as much as possible, be integrated.
As this process would be the first of its kind, with particular inclusion of
our Southern African Development Community (SADC) counterparts, it should
therefore lead by example to other coming similar initiatives, but at the same
time contribute to the Accelerated and Shared Growth Initiative for South
Africa (AsgiSA) and Joint Initiative for Priority Skills Acquisition's (JIPSA)
objectives and be part of the contribution towards the growth target that has
been set. My Department jointly with the province and private sector recently
completed the Mpumalanga Freight Data Bank, which I believe a platform was
created to engage in constructive analysis and conclusions. The databank should
therefore be used as an integrated baseline tool, which will enable the mapping
of corridors and the development of freight scenarios for 2014.
In the recent Transport Lekgotla, I and the various Members of the Executive
Council (MECs) of transport took a resolution that, as these freight and
logistics forums would be led by government it is therefore imperative that
freight logistics capacity is enhanced in the various government departments,
in particular, the provincial departments of transport as the driving
force.
It is the Transport Lekgotla's expectation that all the provincial
departments of transport should start building this capacity by having freight
directorates established. This enhancement of freight logistics capacity cannot
be achieved in isolation but needs serious private sector engagement, in an
effort to acquire shared knowledge and expertise. I therefore urge the private
sector to assist in this regard as they know the operational environment better
than government, notwithstanding the fact that the communities are equally
important in this process.
Programme Director, let me take this opportunity to emphasise what I think
the issues for discussion in the forum should take into consideration in
relation to the corridor:
* how best do we jointly as government and private sector, address the
optimum split between road and rail, in particular, ensuring rail friendly
cargo goes onto rail and the same with road. There is absolutely no need for me
or anyone for that matter to see 6 cubic metre trucks carrying chrome on the N4
all the way to Mozambique. The discussions around such issues should therefore
start a debate towards finding a solution on the readiness of rail capacity to
such a shift
* once more, the seamless movement of cargo between tertiary, secondary and
primary networks, in order to enable an agricultural produce from Wonderfontein
to be able to access route P15/1 right through to the N4 core network
* the already started Maputo Corridor Logistics Initiatives, how best can this
forum piggyback on them and start to articulate clear government and industry
policies
* alignment of activities with the region, in particular, Mozambique and
Swaziland should be mapped out as well as with other corridors in the
continent
* a consolidated implementation plan for both the Maputo Development Corridor
and its sub-corridors (within the province) as well as cross border
issues
* the forum should then start a process of developing clear corridor strategies
that would improve both operations and infrastructure at all levels of networks
including freight border posts, and subsequently tabled at the Economic Cluster
of Ministers for Cabinet approval
* the ability of our border posts to operate at hours and service levels that
meet the needs of users, buyers of goods and service. Border posts must not be
stumbling blocks of efficient movement of goods and people, and effective
trade.
The key border posts that we need to look at are Komatipoort, which now
moves more than Beitbridge, and Oshoek, which is our third busiest land
post.
The above-mentioned are just strategic issues of emphasis and I believe more
issues would surface as the processes unfold.
Lastly Programme Director, I would like wish the forum good luck in the
coming discussions and hopefully the challenges we face in the sub-sector would
be addressed.
I would also like to thank all the stakeholders who came and sacrificed
their busy schedule to come and be part of this joint initiative, with
particular reference to those from our neighbouring states; your presence and
continued support is highly appreciated indeed. This forum would not only be
seen as contributing to AsgiSA and South Africa but to the process of realising
the objectives of the Millennium Development Goals as set by the Ministers of
Transport in the African Union.
I thank you.
Issued by: Department of Transport
9 October 2006
