1. SIP2: Durban - Free State - Gauteng Logistics and Industrial Corridor Overview – May 2015 Msunduzi Investment Conference

2. The 2050 Vision Poster 1. BACKGROUND

3. transport Department: Transport PROVINCE OF KWAZULU-NATAL ?? Geographic Location of the SIP2 Corridor

4. transport Department: Transport PROVINCE OF KWAZULU-NATAL Freight Nodes

6. 1700TEU 2300TEU3220TEU3900TEU4848TEU8600+TEU9700TEU

7. 19,5m

13. 2. SIP2 OBJECTIVES 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 currently disconnected industrial and logistics activities  Integrate marginalised rural production centres surrounding the corridor that are currently isolated from the main logistics system transport Department: Transport PROVINCE OF KWAZULU-NATAL

14. 3. THE SIGNIFICANCE OF THE CORRIDOR... transport Department: Transport PROVINCE OF KWAZULU-NATAL  The Durban – Gauteng Corridor forms the backbone of South Africa’s freight transportation network  It will improve South Africa’s ability to raise transport efficiencies and lower logistics costs – more competitive on international level  Massively improve freight handling capacities to meet future demands

15. transport Department: Transport PROVINCE OF KWAZULU-NATAL  Vital in facilitating economic growth for the country and the entire Southern Africa region  Job Creation  Skills Development  Catalyst for the development of: –Ports –Industrial nodes and hubs –Road and rail infrastructure

16. transport Department: Transport PROVINCE OF KWAZULU-NATAL 4. ALIGNMENT AND COORDINATION - INSTITUTIONAL STRUCTURES

17.  2050 Vision for Durban – Gauteng corridor  Chaired by TRANSNET  Steering Committee represented by DoT’s, DEDT, METRO’s, TRANSNET & SANRAL  The SIP2 KZN Focus Group dealing with the eastern section of the corridor through KZN is a sub-structure of the PICWG.  The SIP2 KZN Focus Group is facilitated and chaired by the KZN DoT transport Department: Transport PROVINCE OF KWAZULU-NATAL 4. ALIGNMENT AND COORDINATION

18. transport Department: Transport PROVINCE OF KWAZULU-NATAL SIP2 KZN Combined Focus Group ~ Purpose: “To produce a co-ordinated and consensus provincial position and input on all matters related to SIP2 and in undertaking this task it will:”  Provide a basis for stakeholder participation and co- ordination  Provide a technical platform to ensure spatial, time and budget alignment  Promote the most effective, efficient and economical provision of both economic (productive) and social (redistributive) infrastructure services  Explore skills & rural development and renewable energy opportunities

19. transport Department: Transport PROVINCE OF KWAZULU-NATAL Involvement of Entities and Municipalities:  SANRAL, TRANSNET, PRASA, DTP & TIKZN are actively involved and represented in the SIP2 KZN Combined Focus Group MUNICIPALITY eThekwini Metro Municipality Umgungundlovu District Municipality uThukela District Municipality Amajuba District Municipality Mkhambathini Local Municipality Msunduzi Local Municipality Umngeni Local Municipality Umtshezi Local Municipality Newcastle Local Municipality Okhahlamba Local Municipality  The following District and Local Municipalities are also actively involved and represented in the SIP2 KZN Combined Focus Group

20. 5. KEY DEVELOPMENTAL COMPONENTS transport Department: Transport PROVINCE OF KWAZULU-NATAL  The Durban – Gauteng Road Corridor  The Durban – Gauteng Rail Corridor  Strategically located hubs and terminals  The Ports of Durban  Strategic secondary developments along the Corridor

21. transport Department: Transport PROVINCE OF KWAZULU-NATAL Northern Region (Gauteng) Central Region (Free State) Southern Region KwaZulu-Natal Electricity Transmission NMPP NATCOR Rail Corridor N3 Road Corridor Pyramid South Aerotropolis City Deep Tambo Springs Sentra Rand West Rand Hub Rural Development (SIP11) Harrismith Logistics Hub & Tshiame Regional Integration (SIP17) Cato Ridge Dube Tradeport Cornubia Integrated Development Port of Durban, Port & Rail Expansion Durban Dig-Out Port Durban Back of Port (BOP) Priority Projects

22. DURBAN PORT EXPANSION : PIER 2 Project RationaleCreate additional Container Handling Capacity Project ScopeThe project entails the deepening and lengthening of Pier 2 berths 203, 204 & 205 as well as strengthening of Quay walls Project Stage Environmental Authorization obtained, final planning underway Development Impact: Handling bigger ships Construction Period 2017 - 2021 Estimated CostR 8,1 billion Job Creation241 Permanent (estimated) 63700 Temporary (estimated) Delivered, commissioned, in service

23. SALISBURY ISLAND EXPANSION :PIER 1 Project Rationale Create additional 1.4 million TEU capacity Project ScopeThe project entails Pier 1 Upgrade – reclaim 17ha between Pier 1 and Salisbury and acquire 9ha of Navy land, two deep water berths, terminal and cranes Project Stage The lease agreement negotiations are at an advanced stage. The EIA application is targeted for completion in 2016/17 Development Impact: Increase Stack Capacity by 1.4 mil TEUs and provide deep water berths Const. Period2017 - 2022 Estimated CostLite Option: R 8,5 million Infill Option: R 20,0 million Job CreationNil (in planning stage)

24. DURBAN DIG OUT PORT Project Rationale Create additional Container Handling Capacity Project ScopeCreate additional container capacity in Durban through a phased approach with the construction of the Durban Dig Out Port Project Stage DDOP: FEL 2 study report completed SBM: FEL2 study report completed; Commercial discussions with current owners commenced Development Impact: Increased Port capacity, especially container handling. Ability to handle bigger ships Construction Period Phase 1 : 2017 - 2024 Estimated Cost R110,9 billion (Total) R 37,0 billion (Phase 1) Job CreationNil (in planning stage)

25. DURBAN “BACK OF PORT” INTERFACE LOCAL AREA PLAN Scope: transport Department: Transport PROVINCE OF KWAZULU-NATAL A plan to provide a clear framework for the management and development of land use in the Back of Port areas in a feasible and sustainable manner.A plan to provide a clear framework for the management and development of land use in the Back of Port areas in a feasible and sustainable manner. -The project is in concept phase -Total estimated project cost: R 6.9 b -Funding status: Unfunded

26. NATCOR RAILWAY LINE Project Rationale Create additional Container Handling Capacity Project ScopeThe Natcor railway line upgrade project involves: Centralized traffic control (CTC) upgrading along the corridor Electrification upgrades Capacity and alignment upgrades Replacement of Rolling Stock and Locomotives Investigation of a new rail link connection from Cato Ridge to Durban Project Stage Various stages of implementation, Rolling Stock & Locomotive acquisition underway Funding Status Partially funded (Rolling stock is funded) Est. CostTotal est. project cost: R 60,7 b Job CreationNil (predominantly planning stage)

27. SANRAL ROAD PROJECTS : N2 & N3 UPGRADES Project RationaleCreate additional capacity on N2 & N3 Road Corridors through KZN Project ScopeThe upgrading of the N2 from Umdloti to Isipingo. The upgrading of the N3 from the EB Cloete I/C to Keeversfontein through a phased approach Project Stage N2, under construction & planning N3, planning & detail design Construction Period 2014 - 2021 Estimated CostR 38,6 billion Job Creation32 331 Temporary (estimated)

28. CORNUBIA HUMAN SETTLEMENT DEVELOPMENT Project Rationale The largest sustainable integrated human settlement initiative for eThekwini and KZN Project ScopeMixed-use, mixed income development. 2.5 million m2 industrial and commercial bulk, residential and open space uses. The estimated project yield is 24,320 residential units. The project is divided into 5 phases. Project StageConstruction – Phase 1A Construction Period Phase 1 - Complete by March 2015 Phase 2 – Complete by 2023 Est. CostR 25,0 billion Job Creation2762 jobs (Mar 2014) 42 800 Permanent (estimated) 387 000 Temporary (estimated)

29. DEVELOPMENT OF DUBE TRADEPORT AND AEROTROPOLIS ~ R 2,0 billion

30. RAIL YARDS AND TERMINALS Durban Port Rail & Terminals (DRIP) ~ R 11,6 billion

31. PROPOSED INLAND LOGISTICS HUB ~ R 2,0 billion Logistics Hub Dedicated Freight Route

32. FREIGHT ROUTE Road Expansion Plans ~ R 13,5 billion

33. PRASA PROJECTS Project Rationale Improve Public Transport Network Project Scope  Rolling Stock Fleet Renewal Programme – R 123,0 billion (20 years)  The first allocation of new coaches are due to arrive during 2017 in the KZN region. (Estimated R5,0bn per year)  Rolling Stock Depot Modernisation Programme – R38,5 million  In preparation for the new rolling stock, Springfield and Durban Yards will be upgraded accordingly with modernised infrastructure and equipment.  Business Express Train between Ethekwini and Pietermaritzburg  Completion of the project is scheduled for end May 2015.  Acceleration of the North – South rail corridor modernisation project – R 135,0 million  Track rehabilitation will be rolled out over the next 3 years to prepare the infrastructure to operate trains at 120km per hour  Station modernisation program of 30 stations has commenced to ensure a standard and modern identity of all stations

34. PRASA PROJECTS Project Rationale Improve Public Transport Network Project Scope  Resignalling of the KZN passenger rail network – R 1,3 bn (5 years)  The Bombardier Africa Alliance Consortium was appointed to undertake the project, which commenced in 2013. The scope of work of the project includes the establishment of the Durban CTC at Rossborough and the installation of interlocking systems in the Durban Region.  The remodelling and upgrade of Berea station as major CBD intermodal hub – R 230,0 million  PRASA will remodel and re-develop the station. The development also includes a mall, which is being funded by a private developer  Completing the Bridge City Rail Link, including new turn- around facilities with infrastructure upgrades at Dalbridge – R 1,3 billion  The actual start of the service commenced on 3 Feb 2014.  Facility for the new Bridge City train service which is part of the project is also progressing very well at 93% completion.  National Station Development Program – R 200,0 million  Various station upgrades and improvement projects including Duffs Road, Berea & Umlazi

35. 6. POTENTIAL BENEFITS TO MSUNDUZI transport Department: Transport PROVINCE OF KWAZULU-NATAL  The SIP2 (N3) Durban – Gauteng Road Corridor is traversing through the Msunduzi municipal area placing Msunduzi from a locality point of view right on the SIP2 Corridor Msunduzi SIP2 (N3) Corridor

36. transport Department: Transport PROVINCE OF KWAZULU-NATAL  The most significant benefits of the SIP2 (N3) Corridor through Msunduzi are: The N3 interchange points through Msunduzi provides key access points for freight and logisticsThe N3 interchange points through Msunduzi provides key access points for freight and logistics It supports the local SDF Developmental NodesIt supports the local SDF Developmental Nodes ECONOMIC NODES ALONG N3 CORRIDOR 1]RICHMOND/UMLAAS RD INTERCHANGE 2]LYNNFIELD PARK ROAD INTERCHANGE 3]MKONDENI/ASHBURTON INTERSECTION 4]HAYFIELDS 5]CBD NODE 6]LIBERTY MIDLANDS MALL 1 4 3 6 5 2

37. transport Department: Transport PROVINCE OF KWAZULU-NATAL Unlocking developmental potential of identified land parcelsUnlocking developmental potential of identified land parcels DEVELOPMENTLOCALITYDESCRIPTION HILLCOVE HILLSASHBURTON89.13 ha game reserve housing; 15.04 ha conventional housing; 22.58 ha lifestyle village housing 3.42 ha frail care suites and facilities 3.12 ha private hospital; 1.63 ha primary school 2 ha community facilities; 7.88 ha general business 7.40 ha limited business 1.28 ha equestrian centre and estate maintenance 2.65 ha lodge, chapel, conference centre, restaurant, wellness centre and spa; 21.62 ha office park 32.31 ha public open space [active and passive] 225.62 ha private open space [game reserve, conservation and parks] 1 ha sewage treatment works BURTON HEIGHTSASHBURTON14.63 ha light industry; 0.49 ha office; 10.36 ha mixed use 69.52 ha retail, education, private hospital, hotel and residential SAMI PALACEMKONDENI25.18ha Residential CHERRY MOSSLynnfield Park23.2721 ha business park; 0.2186 ha administration; 0.8686 ha commercial 2.2374 ha intermediate residential; 8.9465 ha office; 1.5075 ha private open space; 14.6026 ha conservation LYNFIELD SEWAGE WORKS LYNFIELD PARK WASTE LIONS PARK WAREHOUSING ASHBURTON 20.4 ha light industrial, warehousing, offices, storage, factory shops and showrooms PHOENIX IBHUBESI INDUSTRIAL PARK ASHBURTON60.6 ha light industry; 32.7 ha conservation; 0.5 ha associated services RITA LIGHT INDUSTRIAL PARK ASHBURTON14.5457 ha light industry; 2.1730 ha public open space

38. transport Department: Transport PROVINCE OF KWAZULU-NATAL It is also one of the 2 PSEDS “Provincial Priority Corridors” namely PC2, for mixed economic investment unlocking vast developmental potentialIt is also one of the 2 PSEDS “Provincial Priority Corridors” namely PC2, for mixed economic investment unlocking vast developmental potential

39. Investment Required

40. THANK YOU transport Department: Transport PROVINCE OF KWAZULU-NATAL