Logistics sector fortifies the Gauteng economy- 24 November 2021

Office of the Premier 2021/11/23 - 22:00



Thembisa Shologu

As Gauteng's industries recover from COVID-19 socio-economic crisis, the logistics and freight sector have what it takes to spark growth.

Logistics entailed connections between industrial hubs and mining areas to ferry goods to harbours and airports which are critical in the reconstruction of the economy.

"Transport linkages enable the exploitation and development of natural and human resources and a country or region that has an inefficient and ineffective transport sector, would find it extremely difficult, if not impossible, to trade competitively," said Premier David Makhura on Tuesday. 

Speaking at the Freight and Logistics Roundtable at the Gallagher Estate in Ekurhuleni, Makhura said the Gauteng City-Region is well equipped to receive, sort and rapidly deliver goods and services cheaply and effectively stands to profit considerably from these abilities.

"We can manufacture stuff, we can do a lot of agro-processing if we cannot go competitively fast and efficiently at a cost to destinations other markets especially international markets get them out of our economic hub, we cannot get them where the consumption happens is on time then it is just a waste."

The Gauteng province is already a key player in the movement of goods to KwaZulu-Natal and the Eastern Cape ports. 

MEC for Economic Development, Parks Tau said the rial logistics was a binding constraint on investment in the Gauteng City Region. 

About 80% of the provincial freight moves by road, the most expensive mass mode other than air. 

At an optimised level, based on international benchmarks, 80% should move by rail. 

"In terms of all aspects of the logistics and freight system – ports, rail lines, wagons, inland dry ports, the road to rail exchanges, there are opportunities to position public value as commercial value by allowing third parties to run on and invest in public infrastructure," said Tau. 

The Gauteng government is implementing the Multi-Tier Special Economic Zones (SEZ) programme by securing approval and initiating implementation of Special Economic Zones as economic anchors in Tshwane Vaal River City, West Rand and the emerging Aerotropolis complex in the East. 

Trade, Industry and Competition's Director-General of the Department, Lionel October said the coordination and the institutionalisation of the Special Economic Zones, will be key in ensuring that the sector competes at the global stage. 

"This coordination can help us resolve our problems because we have means and capabilities," said October. 

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Tags: SOCIO-ECONOMIC Special Economic Zone Freight and Logistics COVID - 19

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