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Harrismith Logistics Hub Initial Scoping Project

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Harrismith Logistics Hub Initial Scoping Project HARRISMITH LOGISTICS HUB INITIAL SCOPING PROJECT REPORT FEBRUARY 2007 Prepared By: Prepared For: Free State Department of Public Works, TMT Projects (Pty) Ltd Roads and Transport P O Box 654 P O Box 690 Durban Bloemfontein 4000 9300 Tel: 031-5662352 Tel: 051-4055018 Fax: 031-5661966 Fax: 051-4054394 Email: [email protected] Email: [email protected] Department of Transport Pretoria Private Bag X193, Pretoria, 0001 Tel: 012 -3093405 Email: [email protected] HARRISMITH LOGISTICS HUB Initial Scoping Project Report Table of Contents Page No. Preface i List of Acronyms iii Executive Summary v 1. Overview of the Current Situation 1 2. Current Spatial Distribution of Industries and Services 3 3. Economic Situation 8 3.1 Free State Province 8 3.2 Thabo Mofutsanyane District 10 3.3 Harrismith 12 3.4 Industrial Development in Harrismith 14 3.5 Industrial Development Prospects 15 4. Road Transport Related Service Industries 21 4.1 Informal Parking 21 4.2 Truck Stops and Service Centres 21 4.3 Accommodation and Catering 22 4.4 Maintenance and Engineering services 24 5. Road Infrastructure & Capacity 25 5.1 Road Infrastructure 25 5.2 Capacity and Traffic Planning 27 6. Distribution and Warehousing 28 6.1 Road Transport Services 28 6.2 Distribution Centres 29 7. Inter-Modal Facilities 30 8. Current Road Freight Operations 31 8.1 Road Freight on N3 [Durban-Gauteng Corridor] 31 8.2 Road Freight on N5 [Harrismith-Winburg Corridor] 32 9. Rail Freight Infrastructure and Operations 35 9.1 Rail Track Status and Capacity 35 _____________________________________________________________________________ Harrismith Logistics Hub i February 2007 Initial Scoping Report 9.2 Station and Yard Facilities 36 9.3 Current Traffic and Cargoes 37 10. Pipeline Transport 43 11. Air Freight 44 12. Potential Logistics Related Developments 45 12.1 Suitability of Harrismith 45 12.2 Potential Large Scale Logistics Opportunities 46 13. Key Stakeholder Perceptions 50 14. Way Forward 53 Annexure A – Detailed Town Plan Map 55 Annexure B – Detailed Spatial Framework Map 56 _____________________________________________________________________________ Harrismith Logistics Hub ii February 2007 Initial Scoping Report PREFACE In May 2006 the Free State Development Corporation (FDC) an agency of the Free State Department of Economic Development, published a Way Forward report on the Harrismith Logistics Hub as a vehicle for economic growth. The FDC Study Report mentions a range of logistics initiatives that apart from the direct employment and economic multiplier effects of the relevant modal operations, also covers the value added development benefits that would follow. The Study Report proposes that implementation of a “Way Forward” must be premised by the “development of an overall Masterplan, which will require: the definition of an overarching operational concept; …….. which …….. must incorporate road, rail, and sea modes of transportation as part of an integrated plan.” “Individual elements of this plan will include ………. The handling of freight within (…….a planned ………) IDZ area”. This approach is multidisciplinary in nature with the requirement for road, rail, sea, and air cargo investigations to run parallel and, presupposes the establishment of an industrial development zone (IDZ) with qualities attractive to potential investors. This form of approach is widely utilized in projects of this nature and in classical research terms, would be correct. However, by its very nature the approach requires quite substantial additional research, with significant stakeholder networking and buy-in. Different government departments will be involved and the process to reach consensus on all modal issues could be lengthy. In terms of it’s National Freight Logistics Strategy the Department of Transport Pretoria has identified a logistics hub at Harrismith as becoming a key nodal point on the Durban-Gauteng-Durban freight corridor as well as providing a logistic hub gateway to the Free State and beyond. Implementation of this strategy would be devolved to the Free State Department of Public Works, Roads and Transport (FS:DPWRT). Thus, while it is acknowledged that in its broader sense the FDC Study Report has an exciting vision, the scope of implementation is very wide with no defined time line. The total envisaged Masterplan as proposed in the output report covers different transport modes and concepts, each controlled by different national and provincial government departments. Multimodal operational implementation in the short term is highly unlikely due to the wide ranging solicitation that will be required to reach consensus agreement on investment _____________________________________________________________________________ Harrismith Logistics Hub i February 2007 Initial Scoping Report decisions. And in this respect the issues to be debated relate to freight transport policy and strategy. Accordingly, as part of it’s initiative to investigate the modal feasibility of providing services for a logistics hub at Harrismith, the Department of Transport and the FS:DPWRT commissioned TMT Projects (Pty) Ltd as an extension of the latter’s Freight Transport Databank appointment, to undertake an initial scoping exercise for such a facility. To widen it’s resource capability for the extended project, TMT sub-contracted the services of Ubuhle Capital (Pty) Ltd. ____________________________ _____________________________________________________________________________ Harrismith Logistics Hub ii February 2007 Initial Scoping Report LIST OF ACRONYMS AADTT - Annual Average Daily Truck Traffic ABSA - Amalgamated Banks of South Africa AIDS - Acquired Immunodeficiency Syndrome AsgiSA - Accelerated shared growth in South Africa ATM - Auto teller machines AVUTUR - Aviation Turbine Fuel (kerosene) CBD - Central Business District CTC - Centralised Traffic Control DBN - Durban DC - direct current DHD route - Durban-Harrismith-Durban DOT Pretoria - Department of Transport Pretoria FDC - Free State Development Corporation Free State Department of Public Works, Roads and FS:DPWRT - Transport GDP - Growth Domestic Product GGP - gross geographic product HGH route - Harrismith-Gauteng-Harrismith route HGV - Heavy Goods Vehicle HIV - Human Immuno Virus IDC - Industrial Development Corporation ISO - International Standards Organisation specification ISP - Internet Service Provider ISR - Initial Scoping Project JHB - Johannesburg JIHA - Johannesburg International Airport KV - kilo volts KZN:DOT - KwaZulu Natal Department of Transport N3TC - N3 Toll Concession NATCOR - Natal Corridor NDOT - National Department of Transport NPA - National Ports Authority P.G.D.S - Provincial Growth and Development Strategy _____________________________________________________________________________ Harrismith Logistics Hub iii February 2007 Initial Scoping Report p.a. - per annum RIDP - Regional Industrial Development Programme SANRAL - South African National Roads Agency Limited SAPO - South African Ports Operations SDF - Spatial Development Framework TEUs - Twenty foot equivalent unit (6 metre container) TLC - Transitional Local Council U.S.A. - United States of America _____________________________________________________________________________ Harrismith Logistics Hub iv February 2007 Initial Scoping Report EXECUTIVE SUMMARY 1. Harrismith Hub Locality Harrismith is situated in Free State province of South Africa, located approximately 306 kms from Durban and 294 kms from Johannesburg and is therefore at the mid-point of the N3 national road corridor between Durban and Gauteng. The town is also at the intersection of the N3 and the N5 national routes the latter running 200 kms westwards, through Bethlehem to Winburg where it intersects the N1 route to the Cape. 2. Harrismith Town & Population The town of Harrismith was established in 1849 as a staging post on the old Natal transport route with the hinterland, during the Kimberley diamond rush. A railway line was constructed along this route from the then named Province of Natal, reaching Harrismith in 1892. The town is located on the eastern boundary of the Free State, with the country of Lesotho lying to it’s south west. Harrismith falls within the district municipality of Thabo Mofutsanyane, the district municipal offices being situated at Phuthaditjhaba about 47 kilometres from Harrismith. The predominant language of the area is Sesotho, followed by Zulu, although Afrikaans and English are also widely spoken. The total population of Harrismith town and adjoining suburbs / townships is approximately 96,000. The district municipality population is 725,939. 3. Economic Indicators 3.1 Free State Province The Free State Province is centrally located in terms of the geographic distribution of South Africa, and represents 10.6% of the total land area and 6% of the national population of South Africa (Census 2001). It is estimated that there is an economically active population of 1.09 million, within which there is substantial unemployment, estimated at 38.9% in 2002. Overall gross geographic product (GGP) for the province was estimated at R49.1bn in 2002, resulting in an annual per capita income of R11, 854, significantly below the national average of R17,164. 3.2 Harrismith Community services are the most important economic sector in Harrismith, contributing 38% of output. However, in contrast to the District profile, _____________________________________________________________________________ Harrismith Logistics Hub v February 2007 Initial Scoping Report manufacturing
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