0. eThekwini Municipality
2050 vision for the Durban to Gauteng Freight Corridor: What this means for Durban?
Andrew A. Mather
eThekwini Municipality

1. High Level Cost Estimates Socio Economic Benefits
Presentation outline
Context
Roads
Back of Port Land use
High Level Cost Estimates
Socio Economic Benefits
Critical Decision Matrix
Conclusion
Recommendation

2. CONTEXT

3. 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.

4. 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

5. DURBAN to GAUTENG TRANSPORT CORRIDOR
TRANSPORT CORRIDOR COMPONENTS
DURBAN to GAUTENG TRANSPORT CORRIDOR
PASSENGER TRANSPORTATION
FREIGHT TRANSPORTATION & LOGISTICS
Port
Road
Rail
Air
Road
Rail
Air
Pipe
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

6. STRATEGIC ALIGNMENT TO NATIONAL STRATEGIES AND POLICIES
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
Responds to crumbling infrastructure
Resource Intensive economy
Reduce poverty and inequality through lowering logistics costs and through BBBEE and local development via public investment
2050 VISION
IPAP2
NFLS
NGP
NATMAP
OUTCOME 6
NPC DIAGNOSTIC
Prioritises corridors
Identifies need to reduce logistics costs
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
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

7. 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 – (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.

8. Institutional Framework
DoT Minister
(National Champion)
DoT Director-General
(Chairman - Steering Committee)
DoT Deputy Director-General: TL&CD
Steering Committee
Secretariat/PMU
DoT
DPE
the DTI
Treasury
Presidency & NPC
Provincial Governments KZN, Gauteng & Free State
SANRAL
ACSA
RTMC
PRASA
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

9. INSTITUTIONAL FRAMEWORK: WORKSTREAMS
Steering Committee
Policy,
Legislation,
Regulatory,
Compliance
Workstream
Socio-economic, Financing and Funding
Communication
Planning + Infra-
structure Implementation
Project Management and Co-ordination
Prepare internal and external communication strategy.
Arrange launch publicity.
Ongoing reporting activities.
Ascertain investment requirements of program.
Advise on funding strategies.
Facilitate securing of funding.
Advise on affordability and sustainability.
Prepare and consolidate infrastructure plans for port, freight and passenger rail, road, terminals and land use.
Drive project delivery to meet objectives.
Advise on PLRC requirements, and ensure compliance.
Facilitate PLRC changes required to support the project.

10. The 2050 Vision Poster

11. ROADS

12. N3 Road Needs R15,32bn PRIORITY DUE BY DESCRIPTION LENGTH COST 1 2020
(km)
COST
(2010 Rands) 1
2020
Cato Ridge to PMB to 6 lanes & PMB I/C’s upgrade
21,5
R2,05bn 2
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
PMB Bypass 60
R3,65bn 6
2025
Heidelberg - Germiston 40
R1,0bn 7
2035
Germiston - End
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

13. Major Road Infrastructure Proposals from Port of Durban to Cato Ridge
Phase 1c: Mariannhill to Cato Ridge
Port of Durban
Phase 1a: Port to Mariannhill
Phase 1b: North – South Freight Route
Major Road Infrastructure Proposals from Port of Durban to Cato Ridge
Legend
: Implementation Phasing
: :
: Dedicated Road Freight Route

14. Freight Route Phasing - Roads
Phase 1b: North – South Freight Route and Complementary Upgrades
Phase 1a: East – West Freight Route: Port to Mariannhill

15. URBAN PLANNING AND ECONOMIC POTENTIAL ASSESSMENT
Typical Route Impact Analyses
Broad Land Cover
Key Industrial Clusters
Industrial Accessibility
ETA FREIGHT CORRIDOR STUDY

17. BACK OF PORT LAND USE

18. Back of ports ha required
Year
Back of ports ha required
2011
150
2014
179
2017
204
628
878
Back of Port Land Uses

19. HIGH LEVEL COST ESTIMATES

20. INFRASTRUCTURE ELEMENT
INDICATIVE COSTS
INFRASTRUCTURE ELEMENT
COST
(R billion)
PORT (Current port expansions, DIA digout port and Bayhead digout)
150
RAIL
Line capacity
Inland Terminals
Coastal Terminals
111 44 33 34
ROAD 20
PIPELINE 25

21. SOCIO ECONOMIC IMPACT

22. PRELIMINARY SOCIO-ECONOMIC ANALYSES
INFRASTRUCTURE ELEMENT
CONSTRUCTION JOBS
OPERATIONAL 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

23. Measuring Anticipated Economic Impact of Dig-Out Port Development
Order of Magnitude Study

24. 3. Increases in income/wages generation
Economic impact cycle
Economic Impacts
1. New business sales – new levels of demand generated by the port’s construction and development
2. Economic expansion - the growth in local and national economic production (gross geographic production) and supply
3. Increases in income/wages generation
4. Direct on-site jobs, supporting (induced) jobs as well as job opportunities

25. Increases in Economic Demand
Demand for construction materials has a positive spin-off on national economy, generates NEW BUSINESS SALES.
Total New Business Sales
Phase 1: R54.3b
Phase 2: R22.6b
Phase 3: R21.3b
Phase 4: R19 2b
TOTAL: R117.6b

26. 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.
Total New Production (GGP)
Phase 1: R22.4b
Phase 2: R8.9b
Phase 3: R8.4b
Phase 4: R7.6b
TOTAL: R47.5b

27. Work Opportunities and Job Creation
More production translates into an increase in the need for Labour
temporary work opportunities created through the port construction process and
jobs created during 30 year construction phase
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
 Total
63 656
46 171
17 484

28. 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.
Total New Income Impact
Phase 1: R11.2b
Phase 2: R4.5b
Phase 3: R4.2b
Phase 4: R3.8b
TOTAL: R23.8b

29. Economic Impact of Dig-Out Port Operations
An anticipated Operational related GDP of
R million (per annum at full operation) equivalent to 2.75% of SA GDP in current 2010 terms.
Job creation of an additional jobs created at full operation.
Port and Maritime Business related jobs: 11552
Petroleum related jobs: 701
Wider Economy Employment:

30. CRITICAL DECISIONS MATRIX

31. Phase 1 ( )
Planning / Critical Decisions
Infrastructure
Port
1. Acquire Salisbury Island (March 2011) 2. EIA (March 2012) 3. Rezoning (April 2012)
1. DCT Re-engineering (2012) 2. Pier One Phase 2 (2015)
Freight Rail
1. Rolling stock acquisition plan (April 2012)
1. Rolling Stock Acquired (2015)
High Speed Passenger Rail
1.Phase 1 feasibility (Oct 2011) 2. Phase 2 Feasibility (Oct 2014) 3. Cabinet Approval (Mar 2015) 4. EIA (Oct 2019) 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) hour freight management system (June 2015)
1. East - West Road Freight: Phase 1a (2015) , Phase 1c (2019)
Logistic Hubs & Intermodal Terminals
1. Approval of investment and Implementation plan (Dec 2011)
1. Reconfigure and Upgrade of City Deep and other inland existing terminal (2015)
Land Use
1. Finalise LAP (Durban and Gauteng) (June 2011) 2. Rezoning (2013)
1. Land use Phase 1 (2015)
Funding Plan
Develop funding plan for Phase 1 (Dec 2011)
Approved Funding (Dec 2012)
Blue - Decision solely within one stakeholders authority
Purple - joint stakeholder decision required
Red - decision to be made and driven by steercom

32. Phase 2 (2020 - 2037) Port Freight Rail High Speed Passenger Rail
Planning / Critical Decisions
Infrastructure
Port
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 (March 2020 for Ph 1)
Freight Rail
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)
High Speed Passenger Rail
1. Rezoning and Land Acquisition (Oct 2021)
1. Phase 1 Construction
Roads
1. Land assembly (2016) 2. Rezoning (2016) 3. EIA (Dec 2016) 4. Intention to Toll (Dec 2019) 5. Proclamation (June 2020) hr freight management system (2020)
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)
Logistic Hubs & Intermodal Terminals
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. Coastal logistics nodes Ph1 (2020) 2. Inland logistics nodes Ph1 (2020)
Land Use
1. Implementation plan for phase 2 (2016) 2. Rezoning (2017)
1. Land use Phase 2 (2020)
Funding Plan
Develop funding plan for Phase 1 (Dec 2014)
Approved Funding (Dec 2015)
Blue - Decision solely within one stakeholders authority
Purple - joint stakeholder decision required
Red - decision to be made and driven by steercom

33. Phase 3 (2038 - 2050) Planning / Critical Decisions Infrastructure
Port
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. Bayhead Dig-out Port (all phases) ( Ph 1)
Freight Rail
1. Land assembly (2028) 2. rezoning (2028) 3. EIA (2028)
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)
High Speed Passenger Rail
Ongoing construction phases
Roads
1. Land assembly (2028) 2. Rezoning (2028) 3. EIA (2028) 4. Intention to Toll (2028) 5. Proclamation (2028) 6.24 hr freight management system (2038) (To be incorporated into N3 future upgrades) - already a toll road
1. East-West Phase 3 (2038) 2. Extension of freight road from Cato Ridge to Gauteng Phase 2 (2038) (To be incorporated into N3 future upgrades) - already a toll road
Logistic Hubs & Intermodal Terminals
1. Coastal logistics nodes Ph 2 (2038) 2. Inalnd logistics nodes Ph2 (2038)
Land Use
1. Implementation plan for phase 3 (2028) 2. Rezoning (2028)
1. Land use Phase 3 (2038)
Funding Plan
Develop funding plan for Phase 1 (Dec 2025)
Approved Funding (Dec 2028)
Blue - Decision solely within one stakeholders authority
Purple - joint stakeholder decision required
Red - decision to be made and driven by steercom

34. 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