EDGE SEMINAR SIP2 Logistics and Industrial Corridor. 19 February 2015

Transcription

1 EDGE SEMINAR SIP2 Logistics and Industrial Corridor 19 February

2 Contents SIP2 Overview and Context Port and Logistics Observations Infrastructure Programme Conclusion 2

3 The National Infrastructure Plan comprises 18 Strategic Integrated Projects (SIPs) 3

4 SIP 2: Durban-Free State-Gauteng Logistics & Industrial Corridor Improve logistics and economic integration between the main economic centres and raise the efficiency of the export operations Strengthen the logistics and transport corridor between SA s main industrial hubs; Improve access to Durban s export and import facilities, Raise efficiency along the corridor; Integrate the Free State Industrial Strategy activities into the corridor; and Integrate the currently disconnected industrial and logistics activities as well as marganisalised rural production centers surrounding the corridor that are currently isolated from the main logistics system. Project Location KZN- Free State & Gauteng SIP2 Launch Presentation 18 June

5 The Gauteng-Free State-Durban Corridor is the most important economic corridor in the country Total freight on the South African surface is expected to increase from 761mt to 1 970mt. Flows through the port system will increase from 239mt to 565mt and cross-border traffic from 31mt to 70mt Source: Transnet Freight Demand Model,

6 SIP2: Key Objectives Improve the efficiency and effectiveness of the corridor; Create capacity ahead of demand; Create better access to the corridor; and Facilitate regional trade; Align stakeholders behind a common plan for the corridor; Accelerate and synchronise infrastructure rollout; and Optimise industrial capability building, skills development and job creation. 6

7 SIP2 Portfolio Pyramid South Northern Region Sentra- Rand West Rand Hub City Deep Aerotropolis Tambo Springs Central Region Rural Development (SIP 11) Harrismith Logistics Hub NSC (SIP 17) Cato Ridge Dube Trade Port Southern Region Port of Durban Port and Rail Expansions Cornubia Integrated Settlement Durban Dig-Out Port 7

8 SIP2 Sponsors And Steering Committee Minister of Trade & Industry SIP Coordinator Transnet National Government Departments Provincial Government Departments and Agencies Local Government SOCs and Agencies Transport KZN ethekwini Municipality Transnet Public Enterprises Trade and Industry Office of the Premier Department of Transport Department of Economic Development and Tourism Free State Maluti-A-Phofung Municipality City of Johannesburg SANRAL ACSA Agriculture, Forestry and Fisheries Presidency Office of the Premier Department of Transport Economic Development Gauteng City of Tshwane Ekurhuleni Metropolitan Municipality Eskom RTMC National Treasury Rural Development Office of the Premier Department of Roads and Transport Economic Development Economic Development 8

9 Contents SIP2 Overview and Context Port and Logistics Observations Infrastructure Programme Conclusion 9

10 Corridor Volumes 2011 and 2042 Cross border: 1.3 mtpa 3 trains, 135 trucks per day Cross border: 3 mtpa 6 trains, 120 trucks per day Future Volumes Current Volumes Volume split 4% Long haul: 39.5 mtpa 30 trains, 4200 trucks per day Long haul: 110 mtpa 190 trains, 2700 trucks per day Hinterland: 19.0 mtpa 2800 trucks per day Hinterland: 53 mtpa 8300 trucks per day 42% 11% Containers & Auto Liquid fuels 43% General freight Minerals Over berth: 65.3 mtpa Over berth: 186 mtpa Source: Transnet 10

11 Billions Around 60% of the country s imports and exports go through the Port of Durban Big 3 mining exports Total Import/Export Durban Source: GAIN, Imports Exports 11

12 Key Logistic Sector Observations 60% - 75% of all containers shipped & landed at the Port of Durban do not travel further than 30km from the port. However, 70% - 80% of all cargo landed in containers nonetheless does leave ethekwini Municipality. Of 1,320 logistics companies identified in ethekwini Municipality, 1,021 (77%) are trucking related. 60% of all trucking related logistics companies are located within 15km of DCT. 90% of all trucking related logistics companies are located within 30km of DCT. Source: ethekwini Transport Authority,

13 Status Quo & Current Challenges Container movement from/to port 80.3% Export TEU 62.3% Import TEU Source: ethekwini Transport Authority,

14 Status Quo & Current Challenges Logistics activity by industrial area (% of all logistics by area) 5.9% 8.7% 50.6% 70% 3.9% Source: ethekwini Transport Authority,

15 Future Growth & Challenges Currently, 2.6 million TEU per annum moving through port, resulting in +/ daily container related heavy vehicle movements around the Bayhead Area; The containers could reach 8.2 million TEU by 2040, with new dig-out port at old Airport Site, resulting in +/ daily container related moves in the South Durban Basin Area; Source: ethekwini Transport Authority,

16 Location of Integrated Freight Strategy Port Upgrades Rail Yard Upgrades Truck Parking / Short Term Staging All Inclusive Truck Stop Intermodal Hub / Rail Sidings Weighing Facilities Dedicated Freight Route National Corridor Upgrades Crucial Freight Corridor Upgrades Source: ethekwini Transport Authority,

17 The Maritime Connectivity Challenge The intensity of global shipping by number of sailings Source: World Bank

18 18,000 TEU vessels are already on the water More than 70% of all container ships on order in the global market are >8,000 TEU capacity Latest Generation 15m+ (Source: The geography of transport systems) (Indicative size) Port of Durban - currently Handles these vessels routinely Port of Durban - currently Special handling conditions Port of Durban with deepened berths New deep-water berths with chart datum depth of 16,5m will enable routine handling of all of these classes of vessels Modern, deep water facilities are required to routinely handle these vessels 18

19 Bigger ships translate into a lower cost per TEU 19

20 Contents SIP2 Overview and Context Port and Logistics Observations Infrastructure Programme Conclusion 20

21 Pier 2 PORT EXPANSION Pier 1 DDOP Port of Durban, Rail and Road Expansions RAIL PORT EXPANSION ROAD EXPANSION 21

22 DCT (Pier 2) Berth Expansion and Deepening Project Rationale Project Scope Additional capacity plus ability to handle larger vessels Lengthen berths 203 to 205 from 914m to 1210m; Deepen approach channel Deepen berths from 12.8m CDP to 16.5m CDP; Construct New quay walls able withstand loading from heavier modern Ship To Shore (STS) cranes. Project Stage Construction Period Completing detail engineering design Development Impact Improve the safety, efficiency, capacity of Pier 2 and accommodate larger vessels Progress Environmental authorisation granted 22

23 23 Salisbury Island Expansion Project Rationale Create additional 1.4 million TEU capacity Project Scope The project entails Pier 1 Upgrade reclaim 14ha between Pier 1 and Salisbury and acquire 9ha of Navy land. Project will deliver two deep water berths, terminal and cranes and increase capacity from 0.7 mil TEUs pa to 2.1 mil TEUs p.a. The project will be executed in phases. Project Stage Feasibility study nearing completion Construction Period Progress The lease agreement negotiations are at an advanced stage. EIA application targeted for completion in 2016/17.

24 Durban Dig-Out Port Project Rationale Create additional container capacity in Durban Project Scope Project Stage Construction Period The development of the old Durban International Airport (DIA) site to a deep-water mega container port, with an ultimate estimated maximum annual capacity of circa 9.7 m TEUs, to be developed in phases starting mid s through to mid-2050 s. Pre-feasibility Initial phase Progress Pre-feasibility engineering studies commenced for Port July 2013 Landside geotechnical investigations undertaken; Initial Biodiversity due diligence study & contamination / groundwater assessment for DIA completed Sustainability Steering Committee established, to oversee sustainability elements to be incorporated into design, development and operation of the DDOP met-ocean investigations for current & wind data completed Hydrographic surveys to ascertain sea-bed configuration completed 24

25 Durban Rail in Port Project Rationale Project Scope Project Stage Create additional rail capacity and more efficient rail operations within the port The upgrading, reconfiguration and relocation of yards and terminals within the Durban port area in order to complement the development of port capacity. Various lines and yards to be reconfigured to accommodate port developments and improve operational efficiencies Pre-feasibility study underway Construction Period Commencing

26 Road Expansion Plan Phase 3: Post 2035 East West freight route from Port to Mariannhill Phase 1a : Implement by 2020 from Port to N2 with new Interchange Phase 2: Post 2035 East West freight route from Port to Mariannhill Port of Durban Phase 1b: Dependent of Phase 1 of Dig-out Port North South freight route to Dig Out Port Proposed Dig Out Port Source: ethekwini Transport Authority 26

27 Freight Road 1a: East West: Bayhead to N2 Project Rationale Project Scope Project Stage Improve traffic flow into and out of port New 4-lane freight road New Interchange onto N2 New interchange at Langerberg/Bayhead Rd 6.8km long 2 x 11m carriageways 1200 HV/hr carrying capacity Detail Design and EIA commenced Construction Period Development Impact Route will lead to the opening up of 44ha industrial land and alleviate congestion around the port area Progress Phase 1A: Design and EIA commenced - August 2013 (Targeted EIA approval: March 2015); Detail Design will be informed by the conditions of the RoD; Construction: Anticipated to commence in

28 Freight Road 1b: New EW link to Dig Out Port Project Rationale Project Scope Create link between existing and new ports New 4-lane freight road Substantially overpass structure New interchange at E/W Freight Route 6.5 km long 2 x 13m carriageways 1200HV/hr carrying capacity Project Stage Construction Period Alternate options being investigated. Linked to the development of DDOP To be aligned with the DDOP Development Impact New road will facilitate re-development of 751ha land Progress Route pre-feasibility location study complete Alternative strategies being investigated Alignment with DDOP FEL2 in progress 28

29 Back of Port (LAP) - secondary linkages Project Rationale Project Scope Project Stage Improve land use and spatial planning in the back of port area Upgrade existing roads to accommodate diverted traffic : Tara, Grimsby, Stanvac Roads New lanes and freight management infrastructure 7.3km long 2 x 8.0m carriageways 440HV/hr carrying capacity Detailed designs being finalised Construction Period Progress Preliminary design Stakeholder engagement and EIA ongoing 29

30 N2 - Isipingo to Umdloti Project Rationale Project Scope Project Stage Construction Period Provide additional capacity required for the developments and growth of the Dube Tradeport, Cornubia Housing dev, DDOP, e.t.c Upgrade of the under pressure EB Cloete alleviating traffic movement of N2 and N3, and service the projected traffic volumes from the Durban Dig out port Upgrading and widening of the N2 road section between Umdloti and Isipingo Detailed Design To be determined Progress Completed: Preliminary designs Exploring funding models 30

31 N3 Road Network Upgrade Project Rationale Project Scope Project Stage Construction Period Increase capacity along the corridor s road network by upgrading the N3 section between upgrading of the N3 Section between Durban and Cedara. The project scope includes: Widening of N3 to 8 lanes (4 per direction), Upgrade interchanges and possibly build new interchanges, Design Phase 1: Cato Ridge and Pmb by 2017 Phase 2: Durban to Cato Ridge by 2027 Progress Preliminary design and commencement of environmental assessment Exploring funding models 31

32 Contents SIP2 Overview and Context Port and Logistics Observations Infrastructure Programme Conclusion 32

33 National Freight System Context Freight system challenges Road - Rail market share is imbalanced and leads to high costs, high carbon intensity and vulnerability to the international oil price. Requirements for long term competitiveness A large scale modal shift from road to rail to address costs, congestion and carbon emissions. A low carbon, energy efficient freight system that will reduce vulnerability to the volatile oil prices and support South Africa s long-term trade competitiveness and sustainability. Global and regional maritime connectivity is poor. Consolidation in the regional shipping network and the creation of international hub ports. Increased maritime connectivity between regional ports. The regional freight system is weakly integrated and displays poor performance. A high performing core transport network in the region that will enable growth in intra-regional trade. Demand for transport infrastructure across all modes will rise significantly based on forecast freight demand. A freight logistics system that creates capacity ahead of demand, while ensuring that costs to users remain competitive. There is a shortage of skills across most areas of the freight system. Supplier industries for all transport modes are underdeveloped. Identification of priority and scarce skills, and targeted skills development. The State to retain strategic control of the network in order to lead and guide infrastructure investment and development of the supplier industry. 33

34 ethekwini Freight Vision Freight & Logistics Vision for ethekwini By 2030, ethekwini will be the freight and logistics gateway into Southern Africa, providing a world-class freight system and infrastructure with seamless movements modes, origins and destinations of freight. Freight activities will be key in supporting ethekwini's industrialisation, while freight movements and operations will be efficient, cost effective and minimise the negative impact on residents and commuters. Source: ethekwini Transport Authority,

35 Thank you 35

36 The Port of Durban The Port of Durban is the gateway for more than 60% of the country s imports and exports and the value of freight handled is 60% more than the GDP of KZN The port and port related businesses employ in excess of 50,000 people The port is also a key anchor for several industries, example the petrochemical industry More than 60% of the ethekwini economy is heavily reliant on freight transport Forecasts of freight demand indicate the need for significant expansion of port capacity The expansion of port capacity musty be supported by appropriate back of port infrastructure including roads, cargo processing facilities, storage areas, truck stops, etc Following several years of joint planning, a portfolio of projects was developed to meet future capacity requirements and improve the efficiency and effectiveness of the port and the corridor to Gauteng 36

37 High forecast volume growth will put impossible strain on current transport infrastructure unless a significant road to rail shift is achieved *RF = Rail Friendly Corridor Northern Corridor Actual Road 11.2 Total Rail 1.3 RF Cape Town-Gauteng Actual Road 34.2 Total Rail 1.9 RF Durban-Gauteng Actual Road 48.2 Total Rail 7.0 RF Gauteng-East London Actual Coastal Road 4.5 Total Rail 0.3 RF Actual Road 33.7 Total Rail 0.9 RF Source: Transnet Freight Demand Model, 2014 Gauteng-Port Elizabeth Actual Road 5.7 Total Rail 0.9 RF

38 Billion Rands The value of freight handled at the port of Durban is 60% more, than the GDP of KwaZulu-Natal Total value of freight handled at port of Durban GDP of Kwazul-Natal Source: GAIN,