EDGE SEMINAR SIP2 Logistics and Industrial Corridor · Project Scope The project entails Pier 1...
Transcript of EDGE SEMINAR SIP2 Logistics and Industrial Corridor · Project Scope The project entails Pier 1...
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EDGE SEMINAR SIP2 Logistics and Industrial Corridor
19 February 2015
Contents
SIP2 Overview and Context
Port and Logistics Observations
Infrastructure Programme
Conclusion
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The National Infrastructure Plan comprises 18 Strategic Integrated Projects (SIPs)
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SIP 2: Durban-Free State-Gauteng Logistics & Industrial Corridor
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KZN- Free State &
Gauteng
Improve logistics and economic integration between the main economic centres and
raise the efficiency of the export operations
• 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 Free State Industrial Strategy
activities into the corridor; and
• Integrate the currently disconnected industrial
and logistics activities as well as
marganisalised rural production centers
surrounding the corridor that are currently
isolated from the main logistics system.
Project Location
SIP2 Launch Presentation 18 June 2012
Total freight on the South African surface is expected to increase from 761mt to 1 970mt. Flows through the port system will increase from 239mt to 565mt and cross-border traffic from 31mt to 70mt
2013 2044
Source: Transnet Freight Demand Model, 2014
The Gauteng-Free State-Durban Corridor is the most important economic corridor in the country
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SIP2: Key Objectives
• Improve the efficiency and effectiveness of the corridor;
– Create capacity ahead of demand;
– Create better access to the corridor; and
– Facilitate regional trade;
• Align stakeholders behind a common plan for the corridor;
• Accelerate and synchronise infrastructure rollout; and
• Optimise industrial capability building, skills development and job creation.
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SIP2 Portfolio
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Port of Durban Port
and Rail Expansions
Durban Dig-Out
Port
City Deep
Tambo Springs
Harrismith Logistics
Hub
West Rand Hub
Pyramid South
Aerotropolis Sentra-Rand
Dube Trade Port
Cornubia Integrated Settlement
Rural Development
(SIP 11)
NSC (SIP 17)
Cato Ridge
Northern Region
Central Region
Southern Region
SIP2 Sponsors And Steering Committee
SIP Coordinator Transnet
Provincial Government Departments and Agencies
Local Government National Government
Departments SOCs and Agencies
Transport
Public Enterprises
Trade and Industry
Agriculture, Forestry and Fisheries
KZN
Office of the Premier Department of Transport Department of Economic
Development and Tourism
Maluti-A-Phofung Municipality
Transnet eThekwini Municipality
Free State
Office of the Premier Department of Transport Economic Development
Gauteng
Office of the Premier Department of Roads and
Transport Economic Development
City of Johannesburg
City of Tshwane
Ekurhuleni Metropolitan Municipality
SANRAL
ACSA
RTMC
Eskom
Presidency
National Treasury
Rural Development
Economic Development
Minister of Trade & Industry
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Contents
SIP2 Overview and Context
Port and Logistics Observations
Infrastructure Programme
Conclusion
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43%
11%
42%
4%
Containers & Auto General freight
Liquid fuels Minerals
Corridor Volumes 2011 and 2042
Over berth: 186 mtpa
Long haul: 110 mtpa 190 trains, 2700 trucks per day
Hinterland: 53 mtpa 8300 trucks per day
Cross border: 3 mtpa 6 trains, 120 trucks per day
Volume split
Long haul: 39.5 mtpa 30 trains, 4200 trucks per day
Cross border: 1.3 mtpa 3 trains, 135 trucks per day
Hinterland: 19.0 mtpa 2800 trucks per day
Over berth: 65.3 mtpa
Future Volumes
Current Volumes
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Source: Transnet
Around 60% of the country’s imports and exports go through the Port of Durban
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Imports Exports
Bill
ion
s
Big 3 mining exports
Total Import/Export
Durban
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Key Logistic Sector Observations
• 60% - 75% of all containers shipped & landed at the Port of Durban do not travel further than 30km from the port.
• However, 70% - 80% of all cargo landed in containers nonetheless does leave eThekwini Municipality.
• Of 1,320 logistics companies identified in eThekwini Municipality, 1,021 (77%) are trucking related.
• 60% of all trucking related logistics companies are located within 15km of DCT.
• 90% of all trucking related logistics companies are located within 30km of DCT.
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Source: eThekwini Transport Authority, 2012
Status Quo & Current Challenges Container movement from/to port
62.3% Import TEU
80.3% Export TEU
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Source: eThekwini Transport Authority, 2014
50.6%
3.9%
5.9%
8.7%
Status Quo & Current Challenges Logistics activity by industrial area (% of all logistics by area)
70%
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Source: eThekwini Transport Authority, 2014
Future Growth & Challenges
• Currently, 2.6 million TEU per annum moving through port, resulting in +/- 8000 daily container related heavy vehicle movements around the Bayhead Area;
• The containers could reach 8.2 million TEU by 2040, with new dig-out port at old Airport Site, resulting in +/- 17500 daily container related moves in the South Durban Basin Area;
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Source: eThekwini Transport Authority, 2014
Location of Integrated Freight Strategy
Port Upgrades
Rail Yard Upgrades
Truck Parking / Short Term Staging
All Inclusive Truck Stop
Intermodal Hub / Rail Sidings
Weighing Facilities
Dedicated Freight Route
National Corridor Upgrades
Crucial Freight Corridor Upgrades
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Source: eThekwini Transport Authority, 2014
The Maritime Connectivity Challenge
The intensity of global shipping by number of sailings
Source: World Bank
18,000 TEU vessels are already on the water …
(Source: The geography of transport systems)
15m+
(Indicative size)
Latest
Generation
Port of Durban – with deepened berths
• New deep-water berths with chart datum depth of 16,5m will enable routine handling
of all of these classes of vessels
• Modern, deep
water facilities are
required to
routinely handle
these vessels
Port of Durban - currently
• Special handling conditions
Port of Durban - currently
• Handles these vessels
routinely
More than 70% of all container ships on order in the global market
are >8,000 TEU capacity
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Bigger ships translate into a lower cost per TEU
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Contents
SIP2 Overview and Context
Port and Logistics Observations
Infrastructure Programme
Conclusion
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Port of Durban, Rail
and Road Expansions
PORT EXPANSION
RAIL PORT EXPANSION
ROAD EXPANSION
Pier 2
Pier 1
DDOP
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DCT (Pier 2) Berth Expansion and Deepening
Project Rationale Additional capacity plus ability to handle larger vessels
Project Scope • Lengthen berths 203 to 205 from 914m to 1210m;
• Deepen approach channel • Deepen berths 203 - 205 from 12.8m
CDP to 16.5m CDP; • Construct New quay walls able
withstand loading from heavier modern Ship To Shore (STS) cranes.
Project Stage Completing detail engineering design
Construction Period 2016 - 2021
Development Impact Improve the safety , efficiency, capacity of Pier 2 and accommodate larger vessels Progress Environmental authorisation granted
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Salisbury Island Expansion
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Project Rationale Create additional 1.4 million TEU capacity
Project Scope The project entails Pier 1 Upgrade – reclaim 14ha between Pier 1 and Salisbury and acquire 9ha of Navy land. Project will deliver two deep water berths, terminal and cranes and increase capacity from 0.7 mil TEUs pa to 2.1 mil TEUs p.a. The project will be executed in phases.
Project Stage Feasibility study nearing completion
Construction Period 2017-2022
Progress The lease agreement negotiations are at an advanced stage. EIA application targeted for completion in 2016/17.
Durban Dig-Out Port
Project Rationale Create additional container capacity in Durban
Project Scope The development of the old Durban International Airport (DIA) site to a deep-water mega container port, with an ultimate estimated maximum annual capacity of circa 9.7 m TEUs, to be developed in phases starting mid-2020’s through to mid-2050’s.
Project Stage Pre-feasibility
Construction Period 2021– 2025 Initial phase
Progress Pre-feasibility engineering studies commenced for Port July 2013 Landside geotechnical investigations undertaken; Initial Biodiversity due diligence study & contamination / groundwater assessment for DIA completed Sustainability Steering Committee established, to oversee sustainability elements to be incorporated into design, development and operation of the DDOP met-ocean investigations for current & wind data completed Hydrographic surveys to ascertain sea-bed configuration completed
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Durban Rail in Port
Project Rationale Create additional rail capacity and more efficient rail operations within the port
Project Scope The upgrading, reconfiguration and relocation of yards and terminals within the Durban port area in order to complement the development of port capacity. Various lines and yards to be reconfigured to accommodate port developments and improve operational efficiencies
Project Stage Pre-feasibility study underway
Construction Period Commencing 2018
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Road Expansion Plan
Phase 3: Post 2035 East West freight route from Port to Mariannhill
Port of Durban Phase 2: Post 2035 East West freight route from Port to Mariannhill
Phase 1b: Dependent of Phase 1 of Dig-out Port North South freight route to Dig Out Port
Proposed Dig Out Port
Phase 1a : Implement by 2020 from Port to N2 with new Interchange
Source: eThekwini Transport Authority
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Freight Road 1a: East West: Bayhead to N2
Project Rationale Improve traffic flow into and out of port
Project Scope • New 4-lane freight road • New Interchange onto N2 • New interchange at
Langerberg/Bayhead Rd • 6.8km long • 2 x 11m carriageways • 1200 HV/hr carrying capacity
Project Stage Detail Design and EIA commenced
Construction Period 2017 - 2019
Development Impact Route will lead to the opening up of 44ha industrial land and alleviate congestion around the port area Progress Phase 1A: Design and EIA commenced - August 2013 (Targeted EIA approval: March 2015); Detail Design will be informed by the conditions of the RoD; Construction: Anticipated to commence in 2017.
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Freight Road 1b: New EW link to Dig Out Port
Project Rationale Create link between existing and new ports
Project Scope • New 4-lane freight road • Substantially overpass structure • New interchange at E/W Freight
Route • 6.5 km long • 2 x 13m carriageways • 1200HV/hr carrying capacity
Project Stage Alternate options being investigated. Linked to the development of DDOP
Construction Period To be aligned with the DDOP
Development Impact New road will facilitate re-development of 751ha land Progress Route pre-feasibility location study complete Alternative strategies being investigated Alignment with DDOP FEL2 in progress
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Back of Port (LAP) - secondary linkages
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Project Rationale Improve land use and spatial planning in the back of port area
Project Scope • Upgrade existing roads to accommodate diverted traffic : Tara, Grimsby, Stanvac Roads
• New lanes and freight management infrastructure
• 7.3km long • 2 x 8.0m carriageways • 440HV/hr carrying capacity
Project Stage Detailed designs being finalised
Construction Period 2015-2023
Progress Preliminary design Stakeholder engagement and EIA ongoing
N2 - Isipingo to Umdloti
Project Rationale Provide additional capacity required for the developments and growth of the Dube Tradeport, Cornubia Housing dev, DDOP, e.t.c
Project Scope Upgrade of the under pressure EB Cloete alleviating traffic movement of N2 and N3, and service the projected traffic volumes from the Durban Dig out port Upgrading and widening of the N2 road section between Umdloti and Isipingo
Project Stage Detailed Design
Construction Period To be determined
Progress Completed: Preliminary designs Exploring funding models
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N3 Road Network Upgrade
Project Rationale
Increase capacity along the corridor’s road network by upgrading the N3 section between
Project Scope upgrading of the N3 Section between Durban and Cedara. The project scope includes: • Widening of N3 to 8 lanes (4 per
direction), • Upgrade interchanges and possibly
build new interchanges,
Project Stage Design
Construction Period
Phase 1: Cato Ridge and Pmb by 2017 Phase 2: Durban to Cato Ridge by 2027
Progress Preliminary design and commencement of environmental assessment Exploring funding models
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Contents
SIP2 Overview and Context
Port and Logistics Observations
Infrastructure Programme
Conclusion
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National Freight System Context
Freight system challenges Requirements for long term competitiveness
• Road - Rail market share is imbalanced and leads to high
costs, high carbon intensity and vulnerability to the
international oil price.
A large scale modal shift from road to rail to address costs,
congestion and carbon emissions.
A low carbon, energy efficient freight system that will reduce
vulnerability to the volatile oil prices and support South Africa’s
long-term trade competitiveness and sustainability.
• Global and regional maritime connectivity is poor. Consolidation in the regional shipping network and the creation
of international hub ports.
Increased maritime connectivity between regional ports.
• The regional freight system is weakly integrated and displays
poor performance.
A high performing core transport network in the region that
will enable growth in intra-regional trade.
• Demand for transport infrastructure across all modes will rise
significantly based on forecast freight demand.
A freight logistics system that creates capacity ahead of
demand, while ensuring that costs to users remain competitive.
• There is a shortage of skills across most areas of the freight
system.
Identification of priority and scarce skills, and targeted skills
development.
• Supplier industries for all transport modes are
underdeveloped.
The State to retain strategic control of the network in order to
lead and guide infrastructure investment and development of
the supplier industry.
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eThekwini Freight Vision
Freight & Logistics Vision for eThekwini By 2030, eThekwini will be the freight and logistics gateway into Southern Africa, providing a world-class freight system and infrastructure with seamless movements modes, origins and destinations of freight. Freight activities will be key in supporting eThekwini's industrialisation, while freight movements and operations will be efficient, cost effective and minimise the negative impact on residents and commuters.
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Source: eThekwini Transport Authority, 2014
Thank you
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The Port of Durban
• The Port of Durban is the gateway for more than 60% of the country’s imports and exports and the value of freight handled is 60% more than the GDP of KZN
• The port and port related businesses employ in excess of 50,000 people
• The port is also a key anchor for several industries, example the petrochemical industry
• More than 60% of the eThekwini economy is heavily reliant on freight transport
• Forecasts of freight demand indicate the need for significant expansion of port capacity
• The expansion of port capacity musty be supported by appropriate back of port infrastructure including roads, cargo processing facilities, storage areas, truck stops, etc
• Following several years of joint planning, a portfolio of projects was developed to meet future capacity requirements and improve the efficiency and effectiveness of the port and the corridor to Gauteng
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*RF = Rail Friendly Corridor
Northern Corridor
Durban-Gauteng
Gauteng-Port Elizabeth
Cape Town-Gauteng
Gauteng-East London
High forecast volume growth will put impossible strain on current transport infrastructure unless a significant road to rail shift is achieved
Actual 2012 2012 2018 2043
Road 4.5 Total 4.8 5.6 10.9
Rail 0.3 RF 2.0 2.5 5.2
Actual 2012 2012 2018 2043
Road 48.2 Total 55.3 68.3 147.4
Rail 7.0 RF 32.2 34.5 75.7
Actual 2012 2012 2018 2043
Road 11.2 Total 12.5 14.8 31.7
Rail 1.3 RF 4.2 4.7 10.6
Actual 2012 2012 2018 2043
Road 34.2 Total 36.2 42.8 86.9
Rail 1.9 RF 16.8 19.6 40.2
Actual 2012 2012 2018 2043
Road 5.7 Total 6.6 7.3 16.8
Rail 0.9 RF 3.1 3.8 9.3
Actual 2012 2012 2018 2043
Road 33.7 Total 34.6 40.8 84.1
Rail 0.9 RF 0.9 0.9 1.7
Coastal
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Source: Transnet Freight Demand Model, 2014
The value of freight handled at the port of Durban is 60% more, than the GDP of KwaZulu-Natal
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Total value of freight handled at port of Durban GDP of Kwazul-Natal
Bill
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Source: GAIN, 2012