T Mhlahlo: OR Tambo District Growth and Development Summit

13 February 2007

Honourable Premier,
Honourable MECs and MPLs,
The Executive Mayor of OR Tambo District,
Mayors from local municipalities,
Councillors,
Distinguished guests,
Ladies and gentlemen:

It is indeed an honour for me to get an opportunity to address this august
gathering which seeks to emerge with a strategy that would be owned by all
stakeholders in pursuit of a better life for all our people.

The OR Tambo District Municipality is the largest area in this province in
terms population and it remains one of the regions which are dominated by
poverty.

Without reciting the historical political experience of the people of this
part of our country, I believe that the democratic government has a mammoth
task of changing the face and outlook of this area.

We are aware of the critical challenge we face as we attempt to continue to
redress the imbalances of the past through the implementation of the
Reconstruction and Development Programme (RDP) objectives with regard to the
rehabilitation of our transport infrastructure.

Our Provincial Growth and Development Plan (PGDP) highlights the importance
of transport infrastructure investment in the realisation of our economic
growth targets.

The Department of Roads and Transport remains committed to the achievement
of the PGDP targets and our role is to ensure that our transport system and
infrastructure complement the broader economic growth and development programme
of government.

Roads infrastructure

It is a widely known fact that Eastern Cape, especially the OR Tambo region,
has a challenge in terms of road infrastructure and the Department of Roads and
Transport has a responsibility to address this challenge which we inherited
from the apartheid regime.

The new approach that has been adopted by the provincial government which
involves integration of roads and transport planning, has given impetus to our
broad infrastructure development strategy.

There are many roads that we have constructed in this region which
included:
* Mthatha to Qokolweni: R130 million
* Ugie to Langeni Phase one: R240 million
* Flagstaff to Holy Cross Hospital: R142 million
* Mthatha River Bridge: R36 million
* Isilimela Hospital Road: R200 million
* Sulenkama Hospital Road: R242 million (currently under construction)
* Ugie to Langeni: R367 million (currently under construction)

We are currently tarring the streets of the Ngangelizwe Township in Mthatha
through our newly introduced Sakha Isizwe Community-Based Transportation
Learnership Programme.

This new programme will specifically deal with community based and labour
intensive methods of road construction and maintenance to build sustainable
livelihoods and push back the frontiers of poverty.

The Ngangelizwe Learnership Project has benefited 120 young people, who are
expected to work for a period of two and a half years at a cost of R3,8
million.

The Department is currently working on a plan to revitalise the road
infrastructure of the Mthatha city due to the upcoming developments in the OR
Tambo region, which would require government to reposition the town and change
its outlook.

The design of the second phase of the PGDP Wild Coast Meander has commenced
with the upgrading of the road from Tombo Store on the R61 in Port St Johns to
Isilimela hospital.

The feasibility study of the remainder of the route has been conducted.

Over the Medium Term Expenditure Framework (MTEF) period, the Department
will design and construct 1 100 kilometres of new surfaced roads.

This will be spread amongst the districts with 206 kilometres in the OR
Tambo District.

We further plan to surface the roads to Madwaleni and Greenville Hospitals
in 2009.

The Sakha Isizwe Community-Based Transportation Programme has already made
an impact in terms of infrastructure improvement and poverty alleviation
through our household contractor programme.

Presently, we have 1 995 beneficiaries throughout the province on which
R12,9 million had been spent.

Of this number, 545 are from the OR Tambo region in areas such as KSD,
Mhlontlo and Ntabankulu. The regional office has further added 310 temporary
household contractors.

This year, we want to increase this number to 5 000 and give each district
office R10 million to expand the programme.

Through this programme, poor households maintain certain stretches of road
and obtain salaries from the Department.

Their work entails road maintenance, upgrading, construction, focus on
roadside animal management, fencing, pedestrian safety, footpaths,
non-motorised transport, etc.

This new programme is expected to create an estimated 30 000 additional work
opportunities over the MTEF period, thus 5 000 per district.

It would further result in the construction of approximately 300 kilometres
of new low volume roads and the maintenance of approximately 5 500 kilometres
of existing roads, thus significantly improving the quality of the overall
provincial road network and transportation system.

The targeted roads will assist in improving accessibility to economic
activities, tourism opportunities, schools, clinics and other government
services.

Some of the targeted roads include:
* Mqanduli to Hluleka
* Port St Johns R61
* R61 from Mampube to Town
* Port St Johns (DR08191)
* Mbizana (DR 08112 and DR 08113)
* Thabo Mbeki Village in Libode
* Nyandeni (DR 08313)
* Ngqeleni to Mahatma Mouth
* Corhana to Ngqeleni
* Ntabankulu (DR 08125 and DR08106)
* Lusikisiki to Mbotyi

We have further hired rangers in areas such as Ntabankulu, Nyandeni, KSD and
Port St Johns.

The Department has allocated R17 million for re-gravelling of roads by our
in-house maintenance unit in Ntabankulu, Qaukeni, Port St Johns, Nyandeni, King
Sabata Dalindyebo, Mbizana and Mhlontlo between 2007 and 2008.

The identification of specific roads will be guided by the municipalities'
Integrated and Development Plan (IDP) formulation process.

Moving back to rail

The rail network of the Eastern Cape consists of approximately 3 360
kilometres and approximately 450 stations.

The under-utilised rail infrastructure and excessive road damage caused by
heavy road freight suggests that rail freight transport is an option to pursue
in order to support socio-economic development and growth in the province.

This presents a major challenge which has prompted the Eastern Cape
government to adopt the "move back to rail" policy.

We have already started with the Kei Rail Project between East London and
Mthatha, which is expected to commence its operations on 29 March 2007 with a
passenger service between the two cities.

Many people have already lost hope of seeing the train operating due to the
long processes that we had to follow.

Since the start of the Kei Rail Project an amount of R117 million was spent
and 1 700 jobs were created.

Some of the socio-economic benefits identified include:
* 28 000 jobs to be created over 20 years
* 10% reduction in unemployment
* saving in road haulage costs
* saving in road maintenance costs
* avoiding road accidents.

The Department of Roads and Transport has further allocated R37 million for
the new financial year to:
* upgrade service roads along the Kei Rail Line
* refurbish locomotives and wagons
* maintain the line.

Approximately 90% of this work will be done by communities living along the
line.

I would like to inform this meeting that the Zamukulungisa residents have
agreed to relocate to Zimbane Valley in July 2007, which would pave way for the
start of the Siding Facilities' construction worth R11 million.

We further plan to have a "services train", where our people can access
government services such as health (clinics, optometrists, and dental care),
social services (social grants) and communication of government programmes.

This project has prompted the provincial government to declare the area
between East London, Mthatha and beyond as the Kei Development Corridor which
encompasses various mega projects that have huge economic potential.

A freight demand study has been conducted and formed part of the feasibility
report to ascertain current freight movements in the Kei Development
Corridor.

Analysis of data showed an estimated freight tonnage of 7,5 million per
annum and potential rail eligible freight was separated from this total volume
within this corridor.

By implementing a diversion model based on international and local studies,
the study estimates the potential road to rail diversion of between 250 000 and
400 000 tons per annum in the short to medium term.

Other than freight, the possibility of train tourism in this most scenic
part of the province will be investigated.

Specific projects in the OR Tambo District cover mega projects and various
sectors such as agriculture, tourism and industry.

These include the Wild Coast Meander, N2 Toll Road, Kei Rail, Ugie-Langeni
Road and mass food production.

In the agricultural sector, specific projects are livestock improvement
projects, irrigation schemes, macadamia nut production, tunnel farming.

Tourism projects are the Nelson Mandela Cultural Precinct, Nelson Mandela
Cultural Corridor, Tsitsa Falls Nature Reserve, Greater Kei Holiday and
Cultural Village Development.

Industrial projects are integrated food crops, canola bio-fuel industry,
small, medium and micro enterprise (SMME) and co-operative development,
essential oils, cement importing and blending and timber processing.

In an effort to build our capacity in order to sustain this project, the
Department will open a rail centre of excellence in partnership with the
Transport Education and Training Authority (TETA), Walter Sisulu University and
the Nelson Mandela Metropolitan University.

The opening of this centre will give impetus to our "moving back to rail"
strategy.

This means more opportunities for the people of this region as they are
going to acquire skills on rail related studies at this centre and contribute
in the sustainable development of rail infrastructure in this province.

I would like to take this opportunity to inform you that this year we will
host a Kei Development Corridor Investor Conference, which would serve as a
platform for lobbying more investors to come forward.

Rural transport

The national household travel survey of 2005 revealed that 84,5% of Eastern
Cape households have no access to public transport.

About 49,2% of trips made in the province daily were for education purposes,
while 86,3% of these trips to school were walking trips.

This means that the people of the Eastern Cape, particularly learners, have
little mobility.

About 7% of learners in the province take longer than one hour to get to
school and almost 20% take more than 45 minutes to reach schools.

This year, we will introduce animal drawn wagons for rural communities
throughout the province.

The new vehicles can be used for a myriad of functions including:
* scholar transport
* tourism operations
* mail and community services
* cartage
* traditional occasion transport
* rural ambulance services
* transportation of elderly people to the social grants pay points
* mobile clinic operations
* library functions, etc.

This year we will further intensify our Shova Kalula Bicycle Project through
dispatching 1 000 bicycles to rural learners of the Eastern Cape.

Already 71 bicycles have been distributed to Luthuka Senior Secondary School
in Tsolo (41) and Mnceba Senior Secondary School in Ntabankulu (30).

We have 150 bicycles which we will hand over in Port St Johns next
month.

Bus services

The restructuring of the bus services in the former Transkei region has
finally reached a stage of rolling out the buses.

Local individual small bus operators have established a single legal entity
called Africa's Best 350 Ltd (AB350) which is a 100% black owned company in
which all the small bus operators are shareholders.

AB350 is going to purchase 175 brand new buses to service 166 routes in the
former Transkei.

The first 55 buses are expected on the 1st of June 2007.

Road safety

With regard to promotion of safety on our road network, the Department will
build a vehicle testing centre in Lusikisiki to ensure that all vehicles that
travel in the area are in good condition.

Blue skyway aviation strategy

On 2 0ctober 2006, the Department of Roads and Transport unveiled the Blue
Skyway Aviation Strategy which seeks to rejuvenate the Bhisho and Mthatha
airports and our rural airstrips.

The objectives of this strategy are:

* to enhance the usage of Bhisho and Mthatha Airports and our
airstrips
* to provide a policy framework that would guide our public-private partnership
(PPP) engagements with aviation sector role players in the Eastern Cape
* to open up opportunities for maximum participation of the historically
disadvantaged individuals (HDIs), particularly women and the physically
challenged individuals in aviation
* to reposition aviation as a critical component of public transport as we
prepare for the 2010 FIFA World Cup and beyond.

The Department wants to attract as many activities as possible to Bhisho as
well as Mthatha airports and we still encourage other interested service
providers to link up with us to discuss their proposals.

Mthatha Airport has three scheduled flights a day between Mthatha and
Johannesburg by Air Link.

The airport's air traffic volume has recently increased from 23% to 30%.

Already, car rental services are rendered by Avis, Budget and Imperial at
the Mthatha Airport.

The Department has purchased two new fire engines worth R2,5 million which
will assist in increasing the airport's emergency capacity and improve its
grades from four to six.

The national Department of Environmental Affairs and Tourism has allocated
R28 million for the renovations of this airport and consultants have already
been appointed.

The renovations include:
* new parking area for buses and car hire
* all buildings to be repaired
* new intersection linking with the R61
* existing parking to be converted to a pay parking facility.

More discussions and consultations will take a priority in establishing a
second airline to service the Johannesburg to Mthatha route.

We further envisage a link from Mthatha to Durban as soon as the correct
type of service is developed.

An important goal is the linking of Port Elizabeth to Mthatha via Bhisho
with the service geared for faster movement between the three areas, which have
been identified for the 2010 World Cup.

In conclusion, I would like to call upon all mayors to participate in
transport forums in order to ensure integrated planning.

Thank you!

Issued by: Department of Safety, Liaison, Roads and Transport, Eastern Cape
Provincial Government
13 February 2006