2050 vision for the Durban to Gauteng Freight Corridor: What this means for Durban?

1
2050 vision for the Durban to Gauteng Freight
Corridor What this means for Durban? Andrew A.
Mather eThekwini Municipality
2
Presentation outline Context Roads Back of Port
Land use High Level Cost Estimates Socio Economic
Benefits Critical Decision Matrix Conclusion Recom
mendation
3
CONTEXT
4
OBJECTIVES

• The Durban to Gauteng freight corridor forms the
  backbone of South Africas freight transportation
  network, and is vital in facilitating economic
  growth for the country and the Southern African
  region.
• South Africas ability to improve efficiencies
  and lower logistics costs on the corridor, and to
  provide freight handling capacity in line with
  demand, will be critical to the region achieving
  its short, medium and long term economic
  objectives.

5
THE 2050 VISION

• The 2050 vision provides an integrated solution
  to the growing expansion requirements of the
  Durban to Gauteng freight corridor which will
  form the foundation for the establishment of a
  Southern African regional freight network.
• The Durban to Gauteng corridor consists of the
  following key developmental components
• The Port of Durban
• The Durban Gauteng road corridor
• The Durban Gauteng freight rail corridor
• Strategically located logistics hubs and
  terminals
• Supportive local area land use plans

6
TRANSPORT CORRIDOR COMPONENTS
DURBAN to GAUTENG TRANSPORT CORRIDOR
PASSENGER TRANSPORTATION
FREIGHT TRANSPORTATION LOGISTICS
Rail
Air
Road
Air
Road
Rail
Pipe
Port
Intermodal Hubs Terminals Supportive Land Use
Planning
Passengers and freight share the same
infrastructure on the corridor. While at a demand
and capacity planning level the development of
the corridor considers the integrated impact of
the growth of both passengers and freight , the
2050 Vision focuses on Freight transportation and
logistics
7
STRATEGIC ALIGNMENT TO NATIONAL STRATEGIES AND
POLICIES

• Supports Regional Integration through reinforcing
  short sea shipping, extending the rail and road
  corridors into Africa
• Public investment leverage opportunity for local
  development and BBBEE
• Addresses aged, expensive ports rail

• Responds to crumbling infrastructure
• Resource Intensive economy
• Reduce poverty and inequality through lowering
  logistics costs and through BBBEE and local
  development via public investment

• Prioritises corridors
• Identifies need to reduce logistics costs

• Increase rail market share
• Competition for the management of container
  terminals
• Long term national freight plan and prioritise
  corridor development
• Implementation of the Transnet Infrastructure
  Build

• Reducing logistics costs improves competitiveness
  and creates more jobs
• Infrastructure investment creates direct and
  indirect jobs
• Addresses backlogs and bottlenecks in logistics

• Prioritises corridors
• Opportunity for private sector participation in
  terminal operations

8
MAJOR PHASES OF DEVELOPMENT

• The 2050 vision is driven by three major phases
  of port development
• Phase 1 2010 2020 (current expansions in
  the Port of Durban)
• Pier 1 Phase 2, Maydon Wharf, berth deepening,
  land acquisitions, environmental approvals,
  interim leasing of airport site, dedicated
  freight route to N2, construction of phase 1 of
  airport site dig-out, phase 1 of road and rail
  expansions, land use plans, phase 1 of hubs and
  terminals.
• Phase 2 2020 2040 (Airport site
  development)
• Construction of next phases of airport site
  dig-out, associated road and rail capacity
  upgrades, second phase of land-use plans and
  development of hubs and terminals, environmental
  approvals, land acquisitions, rail relocations,
  construction of first phase of Bayhead dig-out.
• Phase 3 2040 2050 (Bayhead development)
• Construction of next phases of Bayhead dig-out,
  ongoing associated corridor expansions.
• The corresponding rail, road, hub and terminal
  and land-use projects also follow this phasing
  sequence.

9
Institutional Framework
DoT Minister (National Champion)
DoT Director-General (Chairman - Steering
Committee)
DoT Deputy Director-General TLCD
Secretariat/PMU
Steering Committee
Provincial Governments KZN, Gauteng Free State
Presidency NPC
DoT
the DTI
DPE
Treasury
Metros/Municipality Jhb Ethekwini
SANRAL
RTMC
PRASA
ACSA
Transnet
Work Streams
Planning Infrastructure
Socio-economic , Finance Funding
Legislation, Policy, Regulation , Compliance
Environment
Communication
National Champion Facilitate inter-ministerial
alignment and Cabinet approval Steercom
Chairperson Ensure administrative and technical
alignment in government Steercom Members
Responsible for sectoral adoption and alignment
10
INSTITUTIONAL FRAMEWORK WORKSTREAMS
Project Management and Co-ordination

• Prepare internal and external communication
  strategy.
• Arrange launch publicity.
• Ongoing reporting activities.

• Ascertain investment requirements of program.
• Advise on funding strategies.
• Facilitate securing of funding.
• Advise on affordability and sustainability.

• Prepare and consolidate infrastructure plans for
  port, freight and passenger rail, road, terminals
  and land use.
• Drive project delivery to meet objectives.

• Advise on PLRC requirements, and ensure
  compliance.
• Facilitate PLRC changes required to support the
  project.

11
The 2050 Vision Poster
12
ROADS
13
N3 Road Needs
PRIORITY DUE BY DESCRIPTION LENGTH (km) COST (2010 Rands)
1 2020 Cato Ridge to PMB to 6 lanes PMB I/Cs upgrade 21,5 R2,05bn
2 2020 De Beers Pass 98 R3,44bn
3 2020 Freight Route Phases 1 2 44 R2,76bn
4 2030 Freight Route Phase 3 23 R1,92bn
5 2030 PMB Bypass 60 R3,65bn
6 2025 Heidelberg - Germiston 40 R1,0bn
7 2035 Germiston - End 5 R0,5bn
TOTAL TOTAL TOTAL TOTAL R15,32bn
Current investigation underway on an N3 8-lane
option and how this could extend the start
date of these projects
14
Phase 1c Mariannhill to Cato Ridge
Port of Durban
Phase 1a Port to Mariannhill
Phase 1b North South Freight Route
Major Road Infrastructure Proposals from Port of
Durban to Cato Ridge
15
Freight Route Phasing - Roads
Phase 1b North South Freight Route and
Complementary Upgrades
Phase 1a East West Freight Route Port to
Mariannhill
16
URBAN PLANNING AND ECONOMIC POTENTIAL ASSESSMENT

• Typical Route Impact Analyses

Broad Land Cover
Key Industrial Clusters
Industrial Accessibility
17
(No Transcript)
18

• BACK OF PORT LAND USE

19
Back of Port Land Uses
Year Back of ports ha required
2011 150
2014 179
2017 204
2019-2037 628
2037-2050 878
20
HIGH LEVEL COST ESTIMATES
21
INDICATIVE COSTS
INFRASTRUCTURE ELEMENT COST (R billion)
PORT (Current port expansions, DIA digout port and Bayhead digout) 150
RAIL Line capacity Inland Terminals Coastal Terminals 111 44 33 34
ROAD 20
PIPELINE 25
22

• SOCIO ECONOMIC IMPACT

23
PRELIMINARY SOCIO-ECONOMIC ANALYSES
INFRASTRUCTURE ELEMENT CONSTRUCTION JOBS OPERATIONAL JOBS
PORT (Current port expansions, DIA digout port and Bayhead digout) 64 000/annum 28 000/annum
RAIL ROAD 51 000/annum 49 000/annum
BACK OF PORT 23 000/annum 6 500/annum
24
Measuring Anticipated Economic Impact of Dig-Out
Port Development

• Order of Magnitude Study

25
Economic impact cycle
26
Increases in Economic Demand

• Demand for construction materials has a
  positive spin-off on national economy, generates
  NEW BUSINESS SALES.

• Total New Business Sales
• Phase 1 R54.3b
• Phase 2 R22.6b
• Phase 3 R21.3b
• Phase 4 R19 2b
• TOTAL R117.6b

27
Increasing Local Production
As business sales increase this requires a
significant increase in local production output,
and generates NEW PRODUCTION referred to as GROSS
GEOGRAPHIC PRODUCTION.

• Total New Production (GGP)
• Phase 1 R22.4b
• Phase 2 R8.9b
• Phase 3 R8.4b
• Phase 4 R7.6b
• TOTAL R47.5b

28
Work Opportunities and Job Creation

• More production translates into an increase in
  the need for Labour
• 318 279 temporary work opportunities created
  through the port construction process and
• 63 656 jobs created during 30 year construction
  phase

Total Jobs Created in Each Phase Total Jobs Created in Each Phase Total Jobs Created in Each Phase Total Jobs Created in Each Phase
  Total Direct Indirect
Phase 1 29 664 21 301 8 363
Phase 2 12 138 8 803 3 335
Phase 3 11 483 8 436 3 046
Phase 4 10 371 7 631 2 740
 Total 63 656 46 171 17 484
29
Impact on Salaries and Wages during Construction
The temporary and permanent employment positions
has a significant impact on the level of local
salaries and wages. These increase R23.8 billion
over the period.

• Total New Income Impact
• Phase 1 R11.2b
• Phase 2 R4.5b
• Phase 3 R4.2b
• Phase 4 R3.8b
• TOTAL R23.8b

30
Economic Impact of Dig-Out Port Operations

• An anticipated Operational related GDP of
• R55 615 million (per annum at full operation)
  equivalent to 2.75 of SA GDP in current 2010
  terms.
• Job creation of an additional 27 533 jobs created
  at full operation.
• Port and Maritime Business related jobs 11552
• Petroleum related jobs 701
• Wider Economy Employment 15821

31
CRITICAL DECISIONS MATRIX
32
Phase 1 (2011 - 2019) Phase 1 (2011 - 2019)
Planning / Critical Decisions Infrastructure
Port 1. Acquire Salisbury Island (March 2011)2. EIA (March 2012)3. Rezoning (April 2012) 1. DCT Re-engineering (2012)2. Pier One Phase 2 (2015)
Freight Rail 1. Rolling stock acquisition plan (April 2012) 1. Rolling Stock Acquired (2015)
High Speed Passenger Rail 1.Phase 1 feasibility (Oct 2011)2. Phase 2 Feasibility (Oct 2014)3. Cabinet Approval (Mar 2015)4. EIA (Oct 2019)5. 24 hour freight management system (June 2015)  
Roads 1.Land assembly (Dec 2012)2. Rezoning (Dec 2012)3. EIA (Dec 2012) 4. Intention to Toll (Dec 2014)5. Proclamation (Jun 2015)6. 24 hour freight management system (June 2015) 1. East - West Road Freight Phase 1a (2015) , Phase 1c (2019)
Logistic Hubs Intermodal Terminals 1. Approval of investment and Implementation plan (Dec 2011) 1. Reconfigure and Upgrade of City Deep and other inland existing terminal (2015)
Land Use 1. Finalise LAP (Durban and Gauteng) (June 2011)2. Rezoning (2013) 1. Land use Phase 1 (2015)
Funding Plan Develop funding plan for Phase 1 (Dec 2011) Approved Funding (Dec 2012)
Blue - Decision solely within one stakeholders authority
Purple - joint stakeholder decision required
Red - decision to be made and driven by steercom
33
Phase 2 (2020 - 2037) Phase 2 (2020 - 2037)
Planning / Critical Decisions Infrastructure
Port 1.Cabinet resolution on preferred use of site in context of 2050 vision (March 2011)2. Adoption of role of dig-out port in context of national port strategy (March 2011)3. Purchase of land / land assembly (Sept 2014)4. SEA (March 2013)5. Rezoning (Sept 2015)6. EIA (Sept 2015)7. Regulatory Approval (March 2014)8. Port concessioning (Sept 2016) 1. Dig-out phases 1 - 4 (March 2020 for Ph 1)
Freight Rail 1. Identify need and location (Oct 2011)2. Sequencing and Phasing (Dec 2011)3. Land assembly (2017)4. rezoning (2017)5. EIA (2017) 1. Coastal Rail Terminal Ph 1 (2020)2. Freight-Commuter separation (2020)3. Rolling stock Acquired (2020)4. New Inland mega rail terminal (2020)5. Natcor Upgrade Phase 1 (2020)
High Speed Passenger Rail 1. Rezoning and Land Acquisition (Oct 2021) 1. Phase 1 Construction
Roads 1. Land assembly (2016)2. Rezoning (2016)3. EIA (Dec 2016)4. Intention to Toll (Dec 2019)5. Proclamation (June 2020)6. 24 hr freight management system (2020) 1. East-West Phase 2 (2022)2. Phase 1b (North - South) (2022) 3. Extension of freight road from Cato Ridge to Gauteng Phase 1 (2020) (To be incorporated into N3 additional lanes/future upgrades)
Logistic Hubs Intermodal Terminals 1. Identify need and location (Dec 2012)2. Sequencing and Phasing (Dec 2012)3. Land assembly (Dec 2012)4. rezoning (Dec 2014)5. EIA (Dec 2014) 1. Coastal logistics nodes Ph1 (2020)2. Inland logistics nodes Ph1 (2020)
Land Use 1. Implementation plan for phase 2 (2016)2. Rezoning (2017) 1. Land use Phase 2 (2020)
Funding Plan Develop funding plan for Phase 1 (Dec 2014) Approved Funding (Dec 2015)
Blue - Decision solely within one stakeholders authority
Purple - joint stakeholder decision required
Red - decision to be made and driven by steercom
34
Phase 3 (2038 - 2050) Phase 3 (2038 - 2050)
Planning / Critical Decisions Infrastructure
Port 1. Habitat re-creation plan (2017)2. Land assembly (2028)3. Rezoning (2029)4. EIA (2029)5. Regulatory Approval (2025)6. Port Concessioning (2028) 1. Bayhead Dig-out Port (all phases) (2038 - Ph 1)
Freight Rail 1. Land assembly (2028)2. rezoning (2028)3. EIA (2028) 1. Coastal Rail Terminal Ph 2 (2038)2. Natcor Upgrade Ph 2 (2038)3. Rolling stock acquired (2038)4. New inland mega rail terminal ph 2 (2038)
High Speed Passenger Rail   Ongoing construction phases
Roads 1. Land assembly (2028)2. Rezoning (2028)3. EIA (2028)4. Intention to Toll (2028)5. Proclamation (2028)6.24 hr freight management system (2038)(To be incorporated into N3 future upgrades) - already a toll road 1. East-West Phase 3 (2038)2. Extension of freight road from Cato Ridge to Gauteng Phase 2 (2038)(To be incorporated into N3 future upgrades) - already a toll road
Logistic Hubs Intermodal Terminals 1. Land assembly (2028)2. rezoning (2028)3. EIA (2028) 1. Coastal logistics nodes Ph 2 (2038)2. Inalnd logistics nodes Ph2 (2038)
Land Use 1. Implementation plan for phase 3 (2028)2. Rezoning (2028) 1. Land use Phase 3 (2038)
Funding Plan Develop funding plan for Phase 1 (Dec 2025) Approved Funding (Dec 2028)
Blue - Decision solely within one stakeholders authority
Purple - joint stakeholder decision required
Red - decision to be made and driven by steercom
35
CONCLUSION

• There is alignment within Government in respect
  of the role of the corridor, its components and
  development timeframes.
• A Multi sectoral Institutional Structure is in
  place to monitor and drive a set of critical
  decisions to ensure capacity is provided in line
  with demand.
• The 2050 Vision is aligned to key national
  policies and strategies
• It provides an aligned, integrated and total
  solution to the freight transportation needs of
  the one of the most important economic corridor
  in the country and Southern Africa