Employment Profile
2.4 Climate Change
2.6.5 The 18 Strategic Integrated Projects (SIPs)
Having recently celebrated 20 years into our democracy, South Africa still faces major challenges of poverty, unemployment and inequality at all spheres of Government. The National Development Plan (2012) was developed in response to the abovementioned challenges and aims to eliminate poverty and reduce
Source: eThekwini Industrial Strategy Figure 45: Industrial Areas
129 inequality by 2030. It identified infrastructure as a critical element to facilitate economic growth and job creation. In line with this and to support and stimulate service delivery, job creation and economic transformation the National Infrastructure Plan (NIP) was adopted in 2012 and the Presidential Infrastructure and Coordinating Commission (PICC) was established to integrate and oversee its implementation. The PICC announced 18 Strategic Integrated Projects (SIPs) which represent corridors of proposed infrastructural development, as support to achieving the goals of the NIP.
The SIPs cover social and economic infrastructure across all nine provinces.
Table 7: The 18 Strategic Integrated Projects (SIP) STRATEGIC INTEGRATED PROJECT (SIP) SIP 1
Unlocking the Northern Mineral Belt with Waterberg as the Catalyst SIP 2 Durban- Free State– Gauteng Logistics and Industrial Corridor SIP 3 South Eastern Node & Corridor Development
SIP 4
Unlocking the economic opportunities in North West Province SIP 5
Saldanha-Northern Cape Development Corridor SIP 6
Integrated Municipal Infrastructure Project
SIP 7 Integrated Urban Space and Public Transport Programme Plan SIP 8
Green Energy in support of the South African economy SIP 9
Electricity Generation to support socio-economic development SIP 10
Electricity Transmission and Distribution for all SIP 11 Agri-Logistics and Rural Infrastructure
SIP 12
Revitalisation of public hospitals and other health facilities SIP 13
National school build programme SIP 14
Higher Education Infrastructure SIP 15
Expanding access to communication technology SIP 16
SKA & MeerKat SIP 17
Regional Integration for African cooperation and development SIP 18
Water and Sanitation Infrastructure Master
130 Figure 39: Durban- Free State– Gauteng Logistics and Industrial Corridor
The nationally driven Strategic Integrated Projects have a significant impact on the eThekwini Municipality, in particular, the SIP2 Logistics and Industrial Corridor as it forms the backbone of South Africa’s freight network.
The main components of the freight corridor are the Port of Durban, well established road, rail and pipeline links to Gauteng, and inland freight terminals to service the broader Gauteng area and countries to the north of our border. The Bay of Natal is a regionally significant estuary and home to Africa’s busiest port, handling a wide range of high value cargoes. It plays a critical role in servicing the import and export needs not only of Durban and its extensive KZN hinterland, but also of Gauteng and the Southern African region. Two thirds of South Africa’s containers move through Durban, as well as a majority of liquid fuel and automotive cargoes. In addition, Durban handles significant break bulk, dry bulk and chemical cargoes, and provides facilities for cruise liners, the SA Navy, and for fishing, service vessels and recreational craft.
Durban is the premier gateway port in the South African ports system, with the lowest logistics costs.
Durban handles high-value cargoes in a complementary relationship with the Port of Richards Bay, which focuses on bulk exports of minerals. Together the ports service the maritime needs of South Africa’s eastern seaboard. As the South African economy grows, the capacity of the port needs to be increased. Over the past ten years, the growth in container traffic through Durban has been three times the national GDP growth rate. There is already pressure on the port, the roads, and in back of port areas, despite recent expansion projects. At an 8% annual container growth forecast the existing transportation infrastructure will reach its limits in 2019. Unless significant expansion takes place, South African economic growth will be constrained, and freight will be forced to relocate to more distant ports, increasing already high transport logistics costs, and compromise South Africa’s global competitiveness. The development of the freight corridor and related projects will reduce the cost of doing business and improve productivity, which will create employment and generate wealth locally, regionally and nationally.
The vision covers port, rail, road and land-use plans, and focuses on national and local economic growth, social upliftment for affected communities, and environmental sustainability.
131 Investment in infrastructure capacity will exceed a quarter of a trillion Rand, making this one of the most significant projects in the history of South African freight transportation. The contributions to the local, region and national economies are expected to be significant during construction and operations. The anticipated number of jobs are 62 000 construction jobs and 54 000 permanent jobs locally, and another 22 000 permanent jobs in port related industries elsewhere in KZN. The project will stimulate local and regional economic growth. A growth of R4 billion per year in KZN GDP is projected during the construction phase.
During the operational phase the growth is significantly larger and estimated GDP at local level is R12.5 billion per year. Cognisance has been taken of other freight expansion projects to accommodate growth in break bulk, dry and liquid bulk, and automotive volumes, and on other non-freight projects. Provision has been made for port and non-port related growth on the transportation corridors, as well as for expansion of passenger numbers on road and rail.
The Port of Durban currently experiences congestion, especially around port operations. In order to alleviate the situation, Transnet proposes to improve throughput capacity by reconfiguring and rationalising the existing precincts of Durban Container Terminal (DCT), Point, Maydon Wharf and Islandview. Transnet also proposes to utilise the Bayhead rail precinct for Back of Port commercial logistics development, in the medium to long term. Transnet plans to supplement the medium to long term capacity by developing the old Durban International Airport site to the proposed Durban Dig Out Port.