T Mhlahlo: R72 Indaba

Address by honourable Thobile Mhlahlo, MEC for Safety,
Security, Liaison, Roads and Transport at the R72 Indaba, Mphekweni
Resort

25 September 2007

It is indeed a great privilege for me to get an opportunity to engage the
business community about the challenges of infrastructure that continue to
confront the Provincial Government.

I would like to express my sincere appreciation for the initiative that has
been taken by the Eastern Cape Business community, which clearly shows your
seriousness about the economic growth and development of our Province.

The message that our collective experience communicates to all of us is
that, working together, we can and shall succeed in meeting the common
objective we have set ourselves as a nation – to build a better life for
all.

Although the Department of Roads and Transport would like to allocate more
funding to routine maintenance, the current capital projects consume the lion
share of the budget. The result is only 37 percent of the total roads budget is
allocated to maintenance and this is only 40 percent of the R2 billion
required.

One of the main strategic priorities in our infrastructure investment
strategy is to make our coastal route, including the Wild Coast available as a
natural resource.

More attention will given to the coastal road between East London and Port
Elizabeth (R72), which runs through the Ncanarha interchange on the N2 to the
Nahoon interchange on the N2 in East London.

This is a vital arterial road that supports both industry (East London and
Coega IDZs) and tourism, and is also of importance for the 2010 FIFA World Cup
that will be held in South Africa and the Eastern Cape.

This road is similar in length to the N2 through Grahamstown, but is
favoured by truckers due to the fact that it has fewer gradients. Traffic
volumes on the R72 have increased significantly over the past three
years.
This is by far the highest trafficked Provincial Rural Road in the
province.

Current challenge:

* Only 95 km of 260 km of total R72 in acceptable standard and
condition
* Capital required to bring R72 up to standard R1,5 billion
* Capital required to bring N2 up to standard R1,5 billion
* Funding not available in Medium Term Expenditure Framework (MTEF)
* Current re-seal of R72 is only holding action till capital projects can be
implemented

Despite these challenges, our routine maintenance programme will assist us
to ensure that the R72 is trafficable.

East London Airport - Lilyvale: Rehabilitation of this section will commence
in this current financial year 20007/08 (in January 2008) and be completed by
2009. An amount of R20million has been budgeted for the current financial
year.

Bushman's River & Kasouga River Bridges: the two bridges at
Bushman's River as well as the bridge over Kasouga River on R72 will be widened
starting in January 2008 and be completed by January 2009. An amount of R5
million has been budgeted for the current financial year.

Ncanarha - Fonteinskloof: Planned commencement of rehabilitation of this
section is during 2008 and completion early in 2010.

Our Departmental Construction Unit will rehabilitate the section between
Loverstwist (Peddie intersection) and the Keiskamma River, where there is
failure of the underlying road foundation and is causing severe potholes.

A 10 km section of R345 between Peddie and Loverstwist (intersection with
R72) will be reconstructed to ensure a safe link between R72 and N2.
Maintenance along this section of road will at the same time intensify as well
as on the R67 between Port Alfred and Grahamstown.

Routine maintenance along sections of R72 which do not form part of the
above rehabilitation programme will be intensified. This entails:

* Surface and pothole repairs
* Bush clearing within the road reserve
* Gravel shoulder repairs
* Repainting of road markings
* Installation of road studs
* Replacement and erection of road signs
* Repairs to fences

As part of our turnaround strategy, the Department of Roads and Transport
has mandated South African National Roads Agency Ltd (SANRAL) to conduct a
feasibility study on the possibility of tolling certain strategic routes and
the priority is R72.

This study includes economic, funding, traffic and operational viability.
The Eastern Cape Roads Act does make a provision for the MEC for Roads and
Transport to take the tolling option.

Furthermore, the following needs to be done:

* Financing options need to be considered, including public (Treasury) and
private partnerships.
* Technical components need to be considered – construction is to commence in
2008 and end in 2011;
* Environmental requirements need to be met;
* Public participation and consultation need to take place,
* Toll operations need to be considered;
* The contractual and banking environments need to be considered, and
* A proclamation as a toll road by agreement need to be made before 2010.

As part of the procedure, the department will undertake the consultative
process and consult communities that reside along the R72.
At the right time, we will convene a broader session with all relevant
stakeholders and provide a way forward.

In conclusion, I would like to once more commend the business leadership in
this province for coming closer to us in an effort to provide a lasting
solution to the challenges of infrastructure.

I hope that we will continue to work together to ensure that we collectively
create a conducive environment for growth and development in this Province.

I thank you.

Issued by: Department of Safety, Security, Liaison, Roads and Transport,
Eastern Cape Provincial Government
25 September 2007

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