The Acting Premier, Mr Phumulo Masualle,

The Minister of Public Enterprises, Mr Malusi Gigaba,

The Minister of Economic Development, Mr Ebrahim Patel

The Minister of Transport, Mr Dikobe Martins,

Honourable MECs,

The Chairman of the Board of Transnet Mr Mafika Mkhwanazi,

Group Chief Executive of Transnet, Mr Brian Molefe,

The workers and management,

Distinguished guests,

 

Molweni, sanibonani, good morning!

 

I am happy to be back in the Eastern Cape and in particular in the heartland of our country’s automotive sector.

 

We are here to take forward two important objectives in our New Growth Path. These are to promote our manufacturing sector and also our infrastructure development plan.

You may recall that we announced our national infrastructure plan in 2012 and also announced that Transnet in particular, would spend over R300billion in infrastructure development as part of its market demand strategy.

 

In the past six months alone, Transnet has invested a massive R11,2 billion on rejuvenating and expanding our country’s infrastructure.

Over the next seven years, Transnet is planning to invest R26 billion on expanding infrastructure programmes in the Eastern Cape Province, given the importance of the province to the country’s economic development.

 

This region is central to government’s plans to strengthen the backbone of our country’s freight transport and logistics infrastructure.

 

It is also central to the support we want to continue providing to our manufacturing sector, especially the automotive sector.

Government wants to provide more support in particular to manufacturing centres that suffer from a disadvantage by virtue of their location in South Africa.

 

The Eastern Cape Province and Port Elizabeth-Uitenhage area are high priority locations for such support. This is because of the existence of a manufacturing cluster as well as high levels of unemployment.

The Eastern Cape automotive cluster is one of the most important drivers of growth in this region. South Africa’s automotive manufacturing sector is one of the country’s key foreign revenue earners.

 

In 2012,automotive exports comprised 12.1% of South Africa’s total exports. A total of R86,9billion in vehicles and components were shipped to 152 various countries around the globe. 

These figures add to the growth of our economy. The role that Transnet plays is key to that success.

 

Logistics plays a key role in the automotive sector. We are therefore very happy today, to be officially launching the new dedicated wagon for motor vehicles.

When I met auto manufacturers here a year ago they expressed their concerns and frustrations to me regarding the transportation of cars. We agreed that a joint solution was called for.

 

I am proud to say that these new wagons, which have been developed and built here in Uitenhage, is the outcome of those discussions. It shows you what we can do ifwe put our hearts and minds together.

 

It also demonstrates the power of creativity and innovation by our design teams.

 

Some 180 of the wagons are currently in service and it is envisaged that about 350 wagons will be built in the coming months. These units will mostly serve on the route between Kaalfontein, near Esselen Park, and Durban.

 

Although Transnet has been operating a fleet of car carrier wagons for many years, these units had become outdated, as industry requirements had changed.

The old carriers had open sides, which meant that the vehicles in transit could be maliciously damaged, while the open sides were also an invitation to theft.

Also, as the vehicles were exposed, they were subjected to more damage and corrosion.

 

The dimensions of vehicles have also changed over the years.

The earlier car carriers could not accommodate higher profile SUV-type vehicles or 4x4s as they are known as well as raised body minibuses. Transnet is therefore moving with the times!

This development also contributes positively to our campaign to promote the move from road to rail in the transportation of goods in order to protect our road networks and promote efficiency.

 

The development of the new vehicle carrier is also testament to the technical expertise and the commitment of all the workers here at Uitenhage. 

 

Siyabulela kubasebenzingomsebenzi omuhle.

All of you went all out to ensure the success of this project.

 

We are pleased that about 90 young welders were employed and 34 young students were trained in welding to build these wagons, with a mix of male and female students.

I have learned as well that the roof section of the wagons, which is the most critical, is managed by a black female supervisor, proving that women can do any job they want to do.

This is not the end.

Transnet is exploring initiatives to enhance competitiveness of both the Eastern Cape and the automotive sector.

This includes positioning Port Elizabeth and Ngqura as key automotive logistics hubs for both the Eastern Cape and Gauteng.

Transnet is also coming up with additional solutions  - such as twenty-four hour operations, expanding the length of trains and training more drivers.

Also being explored are incentives to encourage automotive manufacturers to increase volumes to and from the Eastern Cape.

Ladies and gentlemen,

 

Let me also highlight the importance of our ports.

 

Our ports are some of the tools we have at our disposal that are utilised by the automotive sector daily to move goods locally and abroad.

 

In this province, Transnet owns and manages three commercial ports, which are Ngqura, Port Elizabeth and East London.

 

Transnet also operates container terminals, car terminals, multi-purpose terminals and dry bulk terminals in our three ports here.

The three ports are connected to the markets by existing rail connections between the Eastern Cape and all regions of South and Southern Africa.

 

These are important activities as they create jobs. Transnet has created over 4 200 direct permanent jobs in this province through its operations. 

Its capital investment programme also creates a significant number of additional temporary construction jobs and indirect jobs in the provincial economy.

 

Given their key role in the economy, we continue to develop and expand our ports.

Ngqura is going to be the major trans-shipment hub in Southern Africa.

 

In fact, the Ngqura Container Terminal has just been named as the world’s fastest growing terminal out of an estimated 120ports globally. We extend hearty congratulations to the team at Ngqura. You have done South Africa proud!

 

Ladies and gentlemen

 

Let me underscore that having these ports is very important given the location of our country,  far from the world markets and also the spread of Original Equipment Manufacturers and their suppliers within South Africa. 

 

To alleviate this difficulty, our logistics services must operate at world class efficiencies.

 

The ongoing improvements at all our ports, as part of the infrastructure build programme, must be viewed in this context.

Ladies and gentlemen,

We are a country at work, building a better life for all. We strive to do things better each day. It is for this reason that we can boldly state that South Africa is a much better place to live in now than it was before 1994.

The country’s success has also been acknowledged by independent institutions, for example the Goldman Sachs report released yesterday.

We warmly welcome this report which offers afresh, constructive and independent perspective on South Africa’s achievements in the past 20 years, and work we still need to do.

These achievements have been scored due to the hard work of all South Africans. Working together we must continue the journey towards a prosperous South Africa, the South Africa outlined in the National Development Plan.

I thank you all for the efforts you have put in to make this project a success.

 

I thank you.