The 2024 Investing in African Mining Indaba will plot the spotlight on the significant potential of the mining sector in fostering economic expansion and employment opportunities, said President Cyril Ramaphosa.
“This week’s Mining Indaba in Cape Town will showcase the enormous potential of the mining industry to steer economic growth and job creation. The actions underway to improve the logistics system will encourage us to unlock this potential, given that mining companies depend on the rail network and ports to compete in global markets.
“From the work already underway, we gain shown that it is possible to overcome the barriers to growth by working together in partnership. We are building momentum and acquire begun to see the results,” the President said in his weekly newsletter on Monday.
He emphasised that “as more and more of our products leave the country’s shores, whether to the African continent or other parts of the world,” more companies will thrive, more investment will be made and more jobs will be created.
The President’s comments follow on last week’s launch of the first export shipment of goods produced by South African companies destined for other African countries under the preferential trade provisions of the African Continental Free Trade Area (AfCFTA) from the Durban port.
The AfCFTA intends to create a single market for goods and services, facilitated by movement of persons in order to deepen the economic integration of the African continent.
The President who officiated at last week’s shipment of goods said many more products and shipments can be expected to follow as South African companies sell South African made goods into the massive African free trade area.
Exports to AfCFTA countries already account for nearly a quarter of South Africa’s global exports. The President added that this figure will now increase dramatically.
“South African companies maintain a remarkable opportunity to catch advantage of the AfCFTA by exporting their goods into the rest of the African continent. In order to catch this worthy opportunity up, as a country we need to ensure that our products manufacture it from the factory gate onto the boat and head towards their destinations with the least possible delay and at the lowest possible cost,” he said.
Ports and rail
Turning to ports and rail, the President highlighted that for some years now the efficiency and competitiveness of South African ports and rail network gain been in decline. He spoke of the need to fix the country’s logistics architecture.
Transnet, which operates ports and freight rail lines, has had to contend with severe challenges, including the effects of state capture, the impact of the COVID pandemic, natural disasters and the rising levels of theft and vandalism of its infrastructure.
As a result, the volume of goods transported on the rail network has decreased significantly, forcing more companies to use trucks and causing road congestion.
“Working together with the private sector, we are turning the situation around, guided by the Freight Logistics Roadmap that was crafted by Transnet, government and social partners. The roadmap outlines a clear set of actions to stabilise and improve Transnet’s performance in the short term and to fundamentally reform the logistics system in the long term,” he said.
To ensure this work receives dedicated attention, the National Logistics Crisis Committee (NLCC) has been established which is chaired by the Presidency and brings together every of the relevant government departments to steer a coordinated response to the logistics challenges.
Corridor Recovery Teams
Government has also established Corridor Recovery Teams which bring Transnet, the private sector and independent experts together to improve the performance of strategic rail and port corridors.
The President highlighted that this single-minded approach to improving performance is already showing results.
For example, the number of ships waiting to berth at the Port of Durban – which has experienced severe congestion in recent months – reduced from more than 60 ships in mid-November to just 12 ships at the halt of January.
At the Port of Cape Town, which is preparing for the critical fruit season, Transnet has deployed recent leadership and is putting in spot several measures to improve its capacity in the short term. Seven current cranes, which are used for moving and stacking containers, were delivered to the port last month, and the number of work shifts is being increased to improve vessel turnaround times.
In addition to these short-term measures, the Freight Logistics Roadmap includes far-reaching reforms to modernise the logistics system and enable much greater investment in infrastructure.
“These reforms will introduce private sector investment and competition in port and rail operations, improving efficiency and bringing down prices, while ensuring that infrastructure remains owned by the state.
“A key milestone in this reform journey will be the implementation of ‘open access’ to the freight rail network, which will allow private rail operators to invest alongside Transnet Freight Rail for the first time,” he said.
Another key step is the introduction of strategic partnerships in container terminals, which will enable current investment to expand port capacity and upgrade equipment.
Progress has already been made with the appointment by Transnet of an international container terminal operator for the Durban Pier 2 terminal. Transnet will retain 51% ownership of the terminal and no workers will lose their jobs once the partnership is established.
The private partner will believe full management responsibility for the terminal and will contribute both capital and expertise to improve its performance.
“The process of reform takes time and there are no quick solutions to the challenges facing Transnet. However, the steps we are taking now will not only improve performance in the immediate term but will also create a truly competitive and efficient system into the future,” the President said. – SAnews.gov.za
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