2050 vision for the Durban
to Gauteng Freight
Corridor: What this means
for Durban?
Andrew A. Mather
eThekwini Municipality
CONTEXT
OBJECTIVES
The Durban to Gauteng freight corridor forms the backbone of
South Africa’s freight transportation network, and is vital in
facilitating economic growth for the country and the Southern
African region.
South Africa’s 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.
3
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
4
TRANSPORT CORRIDOR COMPONENTS
DURBAN to GAUTENG TRANSPORT CORRIDOR
FREIGHT TRANSPORTATION & LOGISTICS
Port
Road
Rail
Pipe
Air
PASSENGER TRANSPORTATION
Road
Rail
Air
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
STRATEGIC ALIGNMENT TO NATIONAL STRATEGIES AND
POLICIES
•Responds to crumbling
infrastructure
•Resource Intensive
economy
•Reduce poverty and
inequality through lowering
logistics costs and through
BBBEE and local
development via public
investment
•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
•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
IPAP2
NPC
DIAGNOSTIC
NFLS
•Prioritises corridors
•Identifies need to reduce
logistics costs
2050
VISION
OUTCOME 6
NGP
NATMAP
•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
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.
7
Institutional Framework
DoT Minister
(National Champion)
DoT Director-General
(Chairman - Steering Committee)
DoT Deputy DirectorGeneral: TL&CD
Secretariat/PMU
Steering Committee
DoT
DPE
SANRAL
the DTI
ACSA
Treasury
RTMC
Presidency
& NPC
PRASA
Provincial Governments KZN,
Gauteng & Free State
Transnet
Metros/Municipality
Jhb & Ethekwini
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
INSTITUTIONAL FRAMEWORK: WORKSTREAMS
Steering
Committee
Project Management
and Co-ordination
Planning + Infrastructure
Implementation
Workstream
• Prepare and consolidate
infrastructure plans for
port, freight and passenger
rail, road, terminals and
land use.
• Drive project delivery to
meet objectives.
Communication
Workstream
• Prepare internal and
external communication
strategy.
• Arrange launch publicity.
• Ongoing reporting
activities.
Socio-economic,
Financing and
Funding
Workstream
• Ascertain investment
requirements of program.
• Advise on funding
strategies.
• Facilitate securing of
funding.
• Advise on affordability and
sustainability.
Policy,
Legislation,
Regulatory,
Compliance
Workstream
•Advise on PLRC
requirements, and ensure
compliance.
•Facilitate PLRC changes
required to support the
project.
The 2050 Vision Poster
10
N3 Road Needs
PRIORITY
DUE BY
DESCRIPTION
LENGTH
COST
(km)
(2010 Rands)
1
2020
Cato Ridge to PMB to 6 lanes &
PMB I/C’s 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 R15,32bn
* Current investigation underway on an N3 8-lane option
and how this could extend the start date of these projects
Phase 1c: Mariannhill
to Cato Ridge
Port of Durban
Phase 1a: Port to Mariannhill
Phase 1b: North – South Freight Route
Legend
2010-2025 : Implementation Phasing
:
:
: Dedicated Road Freight Route
Major Road Infrastructure Proposals from Port of
Durban to Cato Ridge
Freight Route Phasing - Roads
Phase 1b: North – South Freight
Route and Complementary Upgrades
Phase 1a: East – West Freight Route:
Port to Mariannhill
URBAN PLANNING AND ECONOMIC
POTENTIAL ASSESSMENT
Typical Route Impact Analyses
Broad Land Cover
ETA FREIGHT CORRIDOR
STUDY
Key Industrial Clusters
15
Industrial Accessibility
Year
2011
2014
2017
2019-2037
2037-2050
Back of
ports ha
required
150
179
204
628
878
Back of Port Land Uses
18
INDICATIVE COSTS
INFRASTRUCTURE ELEMENT
COST
(R billion)
PORT (Current port expansions, DIA digout port
and Bayhead digout)
150
RAIL
• Line capacity
111
44
33
34
20
•Inland Terminals
•Coastal Terminals
ROAD
PIPELINE
25
PRELIMINARY SOCIO-ECONOMIC ANALYSES
INFRASTRUCTURE ELEMENT
CONSTRUCTION OPERATIONAL
JOBS
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
Measuring Anticipated Economic
Impact of Dig-Out Port Development
Order of Magnitude Study
Economic impact cycle
1. New business sales –
new levels of demand
generated by the port’s
construction and
development
4. Direct on-site jobs,
supporting (induced)
jobs as well as job
opportunities
Economic
Impacts
3. Increases in
income/wages
generation
2. Economic expansion the growth in local and
national economic
production (gross
geographic production)
and supply
Increases in Economic Demand
Demand for construction materials has a positive spin-off on
national economy, generates NEW BUSINESS SALES.
New Business Sales Impact (Rm)
30,000
Rand Rm
25,000
20,000
Total New Business Sales
o Phase 1: R54.3b
o Phase 2: R22.6b
o Phase 3: R21.3b
o Phase 4: R19 2b
o TOTAL: R117.6b
15,000
NEW BUSINESS SALES
MULTIPLIER PER R1
SPENT (Rm) Direct
10,000
5,000
Phase Phase Phase Phase
1
2
3
4
Phasing
NEW BUSINESS SALES
MULTIPLIER PER R1
SPENT (Rm) Indirect
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.
Gross Value Added Impact (Rm)
14,000
Rand R million
12,000
10,000
Total New Production (GGP)
o Phase 1: R22.4b
o Phase 2: R8.9b
o Phase 3: R8.4b
o Phase 4: R7.6b
o TOTAL: R47.5b
8,000
6,000
GROSS VALUE ADDED
MULTIPLIERS PER R1
SPENT Direct
4,000
2,000
Phase 1 Phase 2 Phase 3 Phase 4
Phasing
GROSS VALUE ADDED
MULTIPLIERS PER R1
SPENT Indirect
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
Work Opportunities Created in Each
Phase
Phase 1
51,857
Phase 2
148,320
57,414
Phase 3
Phase 4
60,689
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
63 656
46 171
17 484
Total
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.
Income/Wages Impact
Rand (R million)
7,000
6,000
5,000
4,000
Total New Income Impact
o Phase 1: R11.2b
o Phase 2: R4.5b
o Phase 3: R4.2b
o Phase 4: R3.8b
o TOTAL: R23.8b
3,000
2,000
INCOME MULTIPLIERS PER
R1 SPENT Direct
1,000
Phase 1 Phase 2 Phase 3 Phase 4
Phasing
INCOME MULTIPLIERS PER
R1 SPENT Indirect
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
CRITICAL DECISIONS MATRIX
Phase 1 (2011 - 2019)
Planning / Critical Decisions
Port
1. Acquire Salisbury Island (March 2011)
2. EIA (March 2012)
3. Rezoning (April 2012)
Freight Rail 1. Rolling stock acquisition plan (April 2012)
High Speed 1.Phase 1 feasibility (Oct 2011)
Passenger Rail 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)
Infrastructure
1. DCT Re-engineering (2012)
2. Pier One Phase 2 (2015)
1. Rolling Stock Acquired (2015)
Blue - Decision solely within one stakeholders authority
Purple - joint stakeholder decision required
Red - decision to be made and driven by steercom
1. East - West Road Freight: Phase 1a (2015) ,
Phase 1c (2019)
Logistic Hubs & 1. Approval of investment and Implementation 1. Reconfigure and Upgrade of City Deep and
Intermodal plan (Dec 2011)
other inland existing terminal (2015)
Terminals
Land Use
1. Finalise LAP (Durban and Gauteng) (June 2011) 1. Land use Phase 1 (2015)
2. Rezoning (2013)
Funding Plan Develop funding plan for Phase 1 (Dec 2011)
Approved Funding (Dec 2012)
Phase 2 (2020 - 2037)
Planning / Critical Decisions
Port
Freight Rail
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)
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)
1. Phase 1 Construction
High Speed Passenger Rail 1. Rezoning and Land Acquisition (Oct 2021)
1. Land assembly (2016)
Roads
2. Rezoning (2016)
3. EIA (Dec 2016)
4. Intention to Toll (Dec 2019)
5. Proclamation (June 2020)
6. 24 hr freight management system (2020)
Logistic Hubs &
Intermodal Terminals
Land Use
Funding Plan
Infrastructure
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. Implementation plan for phase 2 (2016)
2. Rezoning (2017)
Develop funding plan for Phase 1 (Dec 2014)
Blue - Decision solely within one stakeholders authority
Purple - joint stakeholder decision required
Red - decision to be made and driven by steercom
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)
1. Coastal logistics nodes Ph1 (2020)
2. Inland logistics nodes Ph1 (2020)
1. Land use Phase 2 (2020)
Approved Funding (Dec 2015)
Phase 3 (2038 - 2050)
Planning / Critical Decisions
Port
Freight Rail
High Speed Passenger
Rail
Roads
Logistic Hubs &
Intermodal Terminals
Land Use
Funding Plan
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. Land assembly (2028)
2. rezoning (2028)
3. EIA (2028)
Infrastructure
1. Bayhead Dig-out Port (all phases) (2038 - Ph 1)
Blue - Decision solely within one stakeholders authority
Purple - joint stakeholder decision required
Red - decision to be made and driven by steercom
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)
Ongoing construction phases
1. Land assembly (2028)
1. East-West Phase 3 (2038)
2. Rezoning (2028)
2. Extension of freight road from Cato Ridge to Gauteng
3. EIA (2028)
Phase 2 (2038)
4. Intention to Toll (2028)
(To be incorporated into N3 future upgrades) - already a
5. Proclamation (2028)
toll road
6.24 hr freight management system (2038)
(To be incorporated into N3 future upgrades) - already a
toll road
1. Land assembly (2028)
1. Coastal logistics nodes Ph 2 (2038)
2. rezoning (2028)
2. Inalnd logistics nodes Ph2 (2038)
3. EIA (2028)
1. Implementation plan for phase 3 (2028)
1. Land use Phase 3 (2038)
2. Rezoning (2028)
Develop funding plan for Phase 1 (Dec 2025)
Approved Funding (Dec 2028)
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