Limpopo Infrastructure Indaba 1-2 December 2008 Meropa Casino Polokwane

PRESENTATION FROM THE SOUTH AFRICAN NATIONAL ROADS AGENCY LIMITED (SANRAL) 2 DECEMBER 2008 I ESSA

INTRODUCTION “WHERE ROADS GO, WEALTH FOLLOWS”

RELATIONSHIP BETWEEN ROAD INFRASTRUCTURE AND ECONOMIC DEVELOPMENT - 1 Question: Does Road Infrastructure bring about economic growth or does economic growth lead to the financial capacity to invest in road infrastructure? Egg / chicken?

Relationship - 2 Existence of infrastructure on its own does not facilitate economic growth Potential economic resource has to exist Road infrastructure will then enhance this potential growth further

Relationship - 3 Benefits of road infrastructure are transmitted as: Improved network performance once the new or improved infrastructure is in place – Reduction in vehicle operating costs – Reduced travel time per trip – Multiplier effect on other sectors of the economy – Job creation – Poverty reduction

Relationship - 4 In an urban context: Road infrastructure should be “demand” driven The “demand” be mandated by land use development –As and when required –Rezoning or land use charged

GENERAL CONCLUSIONS Road infrastructure has both a direct and indirect impact on overall economic growth Impact of Public Sector infrastructure investment on private sector investment in physical capital is strong

NATMAP REPORT PHASE 2 NATMAP ANALYSIS CONCLUDES: Roads in Limpopo are in a “fair” condition Roads have spare capacity Future road corridor developments be further appraised R37 Dilokong corridor R33 East-West corridor R71 Polokwane to Moria

NATMAP REPORT PHASE 2 Analysis of roads in Province per road authority Total roads in S.A km Limpopo roads km or 5% of total national network AuthorityKm’s SANRAL3200 RAL = Dept of Roads & Transport7270 Local & District Authorities11730 Total22200

SANRAL’s PLAN & PROGRAMME FOR ROADS INFRASTRUCTURE FOR THE PERIOD

SANRAL’s ROAD NETWORK IN THE PROVINCE

SANRAL’s FUTURE EXPENDITURE IN THE PROVINCE FIN. YEARTOTAL EXPENDITURE CAPEX & OPEX STATUS 2008/9R560 MILLIONApproved & being spent 2009/10R480 MILLIONBudget 2010/11R529 MILLIONBudget

ROADS/ROUTES IN THE SANRAL NETWORK THAT REQUIRE DEVELOPMENT IN THE MEDIUM TO LONG TERM 1 Polokwane Ring Road to the east Tenders closed 28/11/08 Construction start March 2008 Completion 2 stages –Stage 1: Completion of 6km section from North to stadium to be completed by end May 2010 –Stage 2: Completion of the balance of contract by May 2011

c ontinued Mussina Ring Road EIA investigations have commenced Construction to start in 2010 Makado (Louis Trichardt) –Investigate alternatives to keep passing traffic and local traffic apart Tzaneen –Investigate alternative alignments to keep local & passing traffic apart R33 –Possibilities of incorporating into national network in the near future??

OVERALL CONCLUSIONS ON THE OVERALL IMPACT OF ROADS INFRASTRUCTURE ON ECONOMIC GROWTH Higher economic growth rate requires rapid infrastructural development Higher levels of export require sufficient roads so that the goods can reach their point of export (airports, harbours etc) Rapid infrastructure delivery is more achievable by road rather than rail especially in the urban areas

OVERALL CONCLUSIONS ON THE OVERALL IMPACT OF ROADS INFRASTRUCTURE ON ECONOMIC GROWTH More affluence amongst the populace leads to more vehicles and a greater desire to travel due to affordability Infrastructural development is a strong advantage of a nations competitive advantage (Porter) – Cost – Differentiation Rapid Growth – rapid urbanisation – better road network

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