IWCDP SUMMIT
N2 DEVELOPMENT
LOGISTICS PLATFORM FOR THE
WILD COAST
14 November 2013
PART 1
ROAD CONSTRUCTION PROJECTS
IN THE EASTERN CAPE
Project Types
Corridor Development
 Bypass Development
 Conventional Projects
 Routine Road Maintenance
 Community Development Projects

Corridor Development

Proposed N2 Wild Coast Highway
Bypass Development

Butterworth & Dutywa
Public participation completed.
 Final scoping report compiled.
 Scoping report to be advertised for comments.
 Construction estimated to commence 2016.


King William’s Town
Route location to be identified.
 Consulting Firm to be appointed.

Bypass Development

Mount Frere
Possible routes (six options have been identified)
 Public participation to commence March 2014.


Qumbu
Currently no need for a bypass, but
 urgent need for public transport and trading facilities.
 If Municipality provides the necessary taxi/bus ranks,
 SANRAL will consider providing a dual carriageway

Conventional Projects
Recently
Completed
In Construction
In Design or
Planning
N2
5
7
8
R 4 624 mill
N6
3
1
2
R
503 mill
N9
0
0
1
R
350 mill
N10
5
2
1
R 1 034 mill
R56
0
0
1
R
90 mill
R58
0
0
1
R
85 mill
R61
2
7
8
R 4 539 mill
R72
1
0
2
R
Route
Total Estimated
Value
700 mill
Routine Road Maintenance Routes









N2
N6
N9
N10
R56
R58
R61
R61
R62
Tsitsikamma to Brooksnek
East London to Aliwal North
WC Border (Willowmore) to Middelburg
Nanaga to Middelburg
Middelburg to EC Border (Matatiele)
EC Border (Venterstad) to Elliot
WC Boarder to Aberdeen
Queenstown to Port St Johns
EC Border (Haarlem) to N2 (Humansdorp)
Routine Road Maintenance Routes





R63
R63
R67
R72
R75
West EC Border (Graff Reinet) to N10 (Cookhouse)
East N10 (Bedford) to N2 (Komga)
N2 (Grahamstown) to R61 (Queenstown)
N10 (Nanaga) to East London Airport
N2 (Port Elizabeth) to R63 (Graaff Reinet)
Year
2012/2013
2013/2014
2014/2015
Funding
R 94 973 048
R 74 707 645
R 125 323 335
Community Development Projects

In Construction










Brooksnek Various Facilities Mar. 2013 to Mar. 2014
Tombo Various Facilities
Oct. 2011 to Feb. 2014
St Barnabas Various Facilities Aug. 2013 to Apr. 2014
Misty Mt. Various Facilities Jun. 2012 to Jun. 2014
Mafini Various Facilities
Jun. 2012 to Nov. 2013
Umngazi Various Facilities
Oct. 2012 to Oct. 2014
Maqwathini CAR
Nov. 2012 to Nov. 2014
Nyhwarha CAR
Oct. 2012 to Nov. 2014
Magalakangqa CAR
Aug. 2013 to Jun. 2015
Engcobo Pedestrian Facilities Aug. 2013 to Jun. 2015
Total
Est. R 34 mill
Est. R 54 mill
Est. R 27 mill
Est. R 42 mill
Est. R 60 mill
Est. R 52 mill
Est. R 18 mill
Est. R 32 mill
Est. R 50 mill
Est. R 36 mill
Est. R 405 m
Community Development Projects

In Planning








Ndabakazi Intersection
Breidbach IC Pedestrian Fac.
KWT Pedestrian Facilities
Fort Beaufort Various
Tsolomnqa Various Facilities
Whittlesea Pedestrian
Ngcweleni Various Facilities
Mzeke Various Facilities
Start April 2014
Start June 2015
Start June 2015
Start January 2014
Start January 2014
Start January 2014
Start Oct. 2015
Start Jul 2014
Est. R
Est. R
Est. R
Est. R
Est. R
Est. R
Est. R
Est. R
25 mill
8 mill
8 mill
10 mill
12 mill
16 mill
36 mill
21 mill
PART 2
N2 WILD COAST HIGHWAY
PROJECT
Socio-economic Benefit



Give access to untapped potential of former Transkei.
Address the primary inequity of lack of access, which
has led to being the most impoverished region of SA.
Road User Benefits




Linking East London with Durban.
69 km shorter than the existing N2 route.
Estimated time savings of 1¼ to 2¼ hours.
This time and cost savings due to:
 distance
saving,
 Improved alignment,
 lower altitude.
Basic Scope of the Work




Corridor development: Durban to East London.
New alignment: Port Edward to Port St Johns.
Development of approximately 560 km of road.
Construction of 9 bridges, largest being:
 Mtentu
 Msikaba
Msikaba River Bridge
Mtentu River Bridge
Status Quo






RoD received April 2010.
RoD endorsed July 2011.
Detail design of two major bridges complete.
Preliminary design of 7 other bridges in progress.
Preliminary alignment of road works complete.
Commencement pending court cases.
Estimated Project Cost



Two major bridges (greenfields)
Roadworks (greenfields)
Roadworks (existing route)
Total project cost
R 2.1 bill
R 5.1 bill
R 1.8 bill
R 9–10 bill
Estimated Job Creation Potential

Construction Period
 Construction
– Direct
 Construction – Indirect

6 800 jobs
28 100 jobs
Maintenance Period (continuous per annum)
 Operation
– Direct
 Operation – Indirect
900 jobs
18 900 jobs
Estimated Local Socio-economic Impact

During Construction only
 Wages
and salaries
 Income to local industry
 Income to retailers
 Income to service providers
R 480.5 mill
R 360.4 mill
R 240.2 mill
R 120.1 mill
Potential Opportunities

Potential opportunities exists in:
 Road
Construction Projects (direct opportunities).
 Non-road Construction Projects (indirect opportunities).
 Sustainable socio-economic development.
Potential Opportunities During
Construction (Examples)

Construction of roadworks.
 Plant
and machinery hire.
 Establishment of quarries and borrow pits.

Construction of ancillary works.
 Establishment
of site offices and utilities
 Establishment of contractor villages.

Providing support services.
 Servicing
of plant, vehicles, printers, etc.
 Accommodation, catering, retail services.
Unlocking Opportunities
24

SANRAL’s Contribution to Unlock Opportunities
 Development
and training
 Inclusion mechanisms
Development and
Training Model
Community
Development
Projects
Contractor Growth
Path
Routine Road
Maintenance
Projects
Conventional
Projects
Model 1A
Labour Based
Labour
Model 1B
SMME Based
- Labour
- CE1
- CE2
Model 1C
Outcomes Based
- CE3
-CE4
Model 2
- CE6 to CE7
- CE2 to CE4
Model 3A
Small Conventional
Contracts
- CE6 to CE7
Model 3B
Conventional
- CE8 to CE9
Inclusion Mechanisms

Conventional Projects
 Contract

Participation Goals
Routine Road Maintenance Projects
 Enhanced

sub-contractor methodology
Community Development Projects
 Labour
and SMME based contracts.
26
Conventional Projects

Contract Participation Goals:
 Labour
Maximisation: 4 - 6% of tender sum.
 SMME/BE Utilisation : 8 - 12% of tender sum.
 90% of 8 – 12% black owned.
 40% woman owned.
 40% youth.
27
Routine Road Maintenance Projects

Enhanced Sub-contractor Methodology
 Main
contractor typically CIDB grade 6 and upwards.
 Main contractor executes 30 to 40 % of the work.
 Sub-contractors typically CIDB grade 2 to 4.
 Sub-contractors executes 60 to 70% of the work.
 90% of SMME’s black owned.
 40% of SMME’s woman owned.
 40% of SMME’s youth owned.
 All unskilled labour from the local community.
28
Community Development Contracts

Labour and SMME Based Contracts
 SANRAL
contracts with Construction Manager (CM).
 CM tenders for training, mentoring, overseeing, etc.
 CM does not tender for construction of the works.
 All SMME’s are recruited from the local community.
 SMME’s construct 90% of the work, 10% large plant.
 40% of SMME’s must be woman owned.
 40% of SMME’s must be youth owned.
 All labour recruited from the local community.
 Local suppliers are utilised as far as possible.
29
How to get involved?
30






Develop local skills
Develop local SMME’s
Develop local business
Share development plans
Share development programmes
Share data bases
Look out for SANRAL Tenders

Register with statutory controls


SANRAL web-site: www.nra.co.za





CIDB, UIF, SARS, Compensation Commissioner, etc.
Service Provider Zone
Tenders
Current Tenders/Tenders Awarded
All projects
Local media
Local notice boards
RRM & CD projects
31
MARLIZE NEL-VERWEY
(041) 398-3220
NEL-VERWEYM@NRA.CO.ZA
Fraud Hotline:
0800 204 558
sanral@tip-offs.com
www.nra.co.za