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Limpopo Department of Roads and Transport August 2012 1 Contents 1

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Limpopo Department of Roads and Transport August 2012 1 Contents 1 Limpopo Department of Roads and Transport August 2012 1 Contents 1. Opening Statement 2. Setting the Freight Transport Scene 3. Freight Transport Vision, Mission and Goals 4. Freight Transport Challenges & Solutions 5. The Freight Transport Strategic Network 6. Implementation Plan 7. Funding Options 8. Monitoring Approach 2 Opening Statement 3 Opening Statement LIMPOPO PROVINCE IS SITTING ON SOUTH AFRICA’S FUTURE. Limpopo Province needs to unlock this future to realize its position as “The Heartland of Southern Africa”! Challenges faced by the province from a freight transport perspective: Economic issues Institutional issues Legal and Policy issues Infrastructure issues Operational issues 4 Setting the Freight Transport Scene in Limpopo 5 Freight Transport Drivers today 6 Freight Transport Drivers today 7 Freight Transport Drivers today 8 Road Network today 9 Rail Network today 10 Historic Freight Transport Trends 11 Historic Freight Transport Trends 12 Current Freight Transport Trends Groenbult - Tzaneen - Phalaborwa - Kaapmuiden 5000000 4500000 4000000 3500000 3000000 Agriculture Mining Tons 2500000 2000000 Manufacturing Container Traffic 1500000 1000000 Pyramid - Pretoria - Polokwane - Beit 500000 Bridge 0 350000 Fwd Traffic Received Transit Traffic Traffic 300000 Pyramid - Rustenburg - Lephalale 250000 200000 Agriculture 90000000 Tons 150000 Mining 80000000 Manufacturing 100000 Container Traffic 70000000 50000 60000000 0 Fwd Traffic Received Provincial Transit 50000000 Agriculture Traffic Intrastate Traffic Tons Traffic Mining 40000000 Manufacturing 30000000 Container Traffic 20000000 10000000 0 Fwd Traffic Received Provincial Transit 13 Traffic Intrastate Traffic Traffic Current Freight Transport Trends MAIN DIRECTION OF LINE COMMODITIES ORIGIN DESTINATION FREIGHT HANDLED Polokwane, Musina, Petroleum Liquid Inbound Various Provinces Mokopane, Louis Trichardt Polokwane, Musina, Pretoria Musina Maize Inbound Various Provinces Mokopane, Louis Trichardt Coal Outbound Musina Bijlkor Lime products Outbound Bela Bela Pyramid Suid Groenbult- Petroleum Liquid Inbound Various Provinces Tzaneen Komatipoort Citrus Fruits Outbound Lesitele, Orangene Durban, Maputo, WC Coal Outbound Lephalale Various Provinces Iron Ore Outbound Thabazimbi Vereeniging Lephalale- North West Gauteng, Northern Gypsium Inbound Middelwit Cape 14 Current Freight Transport Trends 15 Current Freight Transport Trends 16 Current Freight Transport Trends 17 Current Freight Transport Trends 2006 FREIGHT AVERAGE FREIGHT 2011 FREIGHT AVERAGE FREIGHT DATABANK VOLUMES DATABANK VOLUMES TREND CORRIDORS (million tons per annum) CORRIDORS (million tons per annum) N1 (North of N1 (North of 2.77 2.62 -5.73% Polokwane) Polokwane) 1 1 N1 (South of N1 (South of 3.18 3.48 8.62% Polokwane) Polokwane) N11 N11 (Northwest of 1.28 (Northwest of 4.21 69.60% Mokopane) Mokopane) 2 2 N11 N11 (Southeast of 1.38 (Southeast of 1.52 9.21% Mokopane) Mokopane) 3 R33 1.47 3 R33 0.74 -98.65% 4 R71 1.62 4 R71 1.05 -54.29% 5 R37 0.41 5 R37 2.59 84.17% 6 R81 1.18 6 R81 1.23 4.07% 7 R521 0.58 7 R521 2.97 80.47% Total 13.87 Total 20.41 32.04% 8 R510 0.51 8 R519 1.00 9 R516 0.49 9 R40 1.00 R33 – south in Not in Greater applicable 10 R555 1.68 10 Sekhukhune 1.69 district (R25 linking with R579) 18 Freight Transport Vision for Limpopo 19 Freight Transport Vision 2030 Freight Transport Vision: • A World Renowned Freight Transport Freight Transport Mission • White Paper on National Transport Policy: “To provide safe, reliable, effective, efficient and fully integrated land freight transport operations and infrastructure...” • Optimised Freight Movement That Stimulates Growth Key Freight Transport Goals • Maintain and improve the efficiency of the freight transport system ; • Enhance the sustainability of the freight sector ; and • Ensure the availability of sufficient capacity in the freight sector. 20 Freight Transport Vision 2030 LEGDP 21 Freight Transport Challenges and Solutions 22 Key Freight Transport Principles Sustainable land freight Significant investment in the land freight transport system . transport system By effectively serving all modes in an integrated manner the land freight transport system can be highly responsive to change and provide access and mobility for goods movement. Safe land freight Land freight transport system needs to be safe. Equally, education and promotion are methods transport system that can contribute to significant safety outcomes. Integrated and Packaging complementary measures that work towards the Strategy’s goals and vision responsive land freight transport system Integration of activities between transport agencies, between transport modes and policy development and application within and between regulatory agencies. Creating freight Enable choice that encourages goods to travel in affordable, integrated, safe and environmentally transport choices by sustainable ways. balancing roles of freight transport modes Freight movement by road favoured to the detriment of other modes. Slide 23 Air Freight Potential AIRPORT IN LIMPOPO FREIGHT POTENTIAL DESCRIPTION There is hardly any high-value freight in the area, unless significant beneficiation of Burgersfort low platinum takes place like manufacturing of high-value products There is no high-value freight in the area and Musina low / insignificant no future projections thereof Very little expectation that high-value freight Thohoyandou low will be available unless agro-processing takes place in the future Very little beneficiation / manufacturing taking Tzaneen low place to produce high-value freight in the area Very little beneficiation / manufacturing taking Phalaborwa low place to produce high-value freight in the area Lephalale's economy is envisaged to grow substantially in the next 20 – 30 years but Lephalale Limited none of the development is envisaged will bring high value freight Hoedspruit Limited Courier type cargo envisaged It is estimated that Polokwane International could attract about 3 600 tonnes of air freight Polokwane High per annum, which equates to about 45 flights by an 80-tonne freighter aircraft 24 Air Freight Strategy DEVELOPMENT OPTION PATH DECRIPTION ENVIRONMENTAL SCAN KEY FACTORS TO CONSIDER Small cargo handling New development inside SAA Airlink bumping off cargo; Competitive pricing against road transport; facilities on existing site airport perimeter Mostly for rest of SA bound cargo Bigger and more airlines; Belly cargo focus; Airline operators with freight handling and forward capacity; Better use of unutilised hangar space Major cargo handling New development at the Severe competition from road Competitive pricing with road transport; facilities on the airside entrance of the airport freighting; Bigger and more airlines at airport to seek and outside airport Cargo trends follow the direction of competition perimeter economically-downturn means Belly cargo and all-cargo freighting focus decrease in cargo; International route – market development Most agricultural produce very bulky; Operate belly cargo in Africa to avoid dead legs; Most mining produce bulky and non- Operate both belly-cargo and all cargo from perishable – no beneficiation; European routes; Transportation to ports and shipped; Have to have freight handling and forwarders based at the airport; Not economical, air-freighting too expensive; Needs to be driven as a provincial priority; Virtually no international freighting Needs significant provincial initiative possible for other airports outside of implementation; ORTIA; Needs government subsidisation; and Dead legs on return international Long term focus and African cargo freight flights; Potential fresh product demand Slide 25 throughout the year Rail Freight Strategy Rail Freight Characteristics: Challenges • 3 freight transport • Loss of market share by drivers: rail freight; • Agriculture and food • Lack of rail services. processing • Underutilisation of rail • Industry – cement infrastructure; • Mining – gold, iron • Presently freight ore, copper, platinum, transport mainly consists COAL of road and rail, with limited intermodal freight. Slide 26 Rail Freight Strategy 27 Rail Freight Requirements 28 Road Freight Strategy Road Freight Road Freight Challenges Challenges • Less than 35% of road network in the • Overloading control contributing to province is paved; deterioration of road infrastructure; • General lack of maintenance; • Border crossing processing requiring • No dedicated fund for road maintenance on reviewing; other transport corridors; • Lack of law enforcement; • Lack of calibrated weighing equipment, • Transport of hazardous materials challenges knowledge and skills, enforcement and such as the lack of incident management supervision to address the issue of system (IMS). overloading; • Lack of proper facilities such as truck stops; and • Excessive overloading. Slide 29 Where is traffic coming from? 30 Where is traffic going to? 31 Optimization for HAZMAT Movement 32 What should not be on the road network? Slide 33 How heavy vehicles are avoiding to be weighed… Solutions: • Strengthening of overload control enforcement on escape routes. • Introduction of regular calibration of weighbridges. • Upgrading weighbridge scales to the type of scale suitable for the traffic on each particular route or corridor. • Extend operating hours of some strategic weighbridges such that they operate throughout the day. 34 Solutions for Border Post Operations PROCESSING TIMES IN MINUTES BORDER POST IMMIGRA- POLICE & **SPS/ STAN- TOTAL
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