Organised business in KwaZulu-Natal has welcomed the R26bn port investments launched in the province, saying they are a major boost for the economy, which has been battered by the Covid19 pandemic and the July 2021 political and civil unrest. The trailblazing investments are designed to give impetus to growing the oceans economy and implementing the comprehensive maritime transport policy announced by transport minister Fikile Mbalula on January 21. They are geared towards advancing SA’s economic interests through Operation Phakisa — a fastresults delivery programme launched in July 2014 to help implement the National Development Plan, with the ultimate goal of boosting economic growth and creating jobs. Durban Chamber of Commerce & Industry president Nigel Ward said the investments will unlock potential in the maritime sector, stimulate economic growth and contribute to the advancement of SA’s economy. “As organised business, we are encouraged to see the minister take the necessary steps to reach our full potential through Operation Phakisa. We constantly need to identify projects that will position Durban as an attractive and hospitable environment for investors locally and internationally.” An estimated 90% of world trade is facilitated by maritime shipping. As trade volumes grow, it has become clear SA’s port infrastructure has to be developed to meet the demand. “We believe this development will yield positive economic spin-offs for the local economy. The oceans economy and the maritime sector are considered to offer several benefits to the city and SA in the future,” said Ward.“Provided Operation Phakisa is well-executed, we can unlock the economic potential of SA’s oceans, which can contribute up to R177bn to GDP by 2033 and create between 800,000 and 1-million direct jobs. We view this investment as a catalyst to reconstructing and rebuilding the maritime sector,” he said. The construction phase will create more than 1,500 temporary direct and other indirect job opportunities. The operation phase will create more than 150 skilled and semi-skilled employment opportunities.“This investment will significantly contribute to infrastructure development. The total construction investment is R1.5bn. The $26m (R405m) maritime vessel that is part of this investment is the first chemical tanker to be acquired by an SA company and will soon be flagged locally,” said Mbalula. Dormac Marine Engineering will renew existing leases, which will generate rental income for Transnet and eThekwini Municipality, now standing at R17.5m per annum. Port premises in Durban and Cape Town, now leased from Transnet at full commercial rentals, generate R20.6m per annum for Transnet. Dormac employs 136 employees, and this investment will preserve these jobs. The investments are a catalyst towards the realisation of tangible economic interventions and improving the competitiveness of SA ports.Meanwhile, Hillside Aluminium will renew existing leases at the Port of Richards Bay for the bulkstorage silos facility, pitch tanks terminal, stock yard facility and the conveyor belt system effluent pipeline facility. “Their investment further supports the competitive existence of a downstream aluminium industry directly employing about 11,600 people permanently, while contributing to the indirect formal employment of 28,500 people,” said Mbalula. The direct contributions include revenue to Transnet and the municipality of Richards Bay of R338m per annum, local procurement spend of R2bn per annum, and contribution to the tax base of R1.1bn per annum. He said the ports infrastructure has been identified as a strategic area to drive government objectives of economic inclusion particularly regarding the participation of the historically disadvantaged communities in the maritime sector, including women and youth. In the context of the above article, discuss the various roles that transport plays in the economy.
Organised business in KwaZulu-Natal has welcomed the R26bn port investments launched in the province, saying they are a major boost for the economy, which has been battered by the Covid19 pandemic and the July 2021 political and civil unrest. The trailblazing investments are designed
to give impetus to growing the oceans economy and implementing the comprehensive maritime transport policy announced by transport minister Fikile Mbalula on January 21.
They are geared towards advancing SA’s economic interests through Operation Phakisa — a fastresults delivery programme launched in July 2014 to help implement the National Development
Plan, with the ultimate goal of boosting
Commerce & Industry president Nigel Ward said the investments will unlock potential in the
maritime sector, stimulate economic growth and contribute to the advancement of SA’s economy.
“As organised business, we are encouraged to see the minister take the necessary steps to reach our full potential through Operation Phakisa. We constantly need to identify projects that will position Durban as an attractive and hospitable environment for investors locally and internationally.” An estimated 90% of world trade is facilitated by maritime shipping. As trade volumes grow, it has become clear SA’s port infrastructure has to be developed to meet the demand.
“We believe this development will yield positive economic spin-offs for the local economy. The oceans economy and the maritime sector are considered to offer several benefits to the city and SA in the future,” said Ward.“Provided Operation Phakisa is well-executed, we can unlock the economic potential of SA’s oceans, which can contribute up to R177bn to
construction investment is R1.5bn. The $26m (R405m) maritime vessel that is part of this investment is the first chemical tanker to be acquired by an SA company and will soon be flagged locally,” said Mbalula. Dormac Marine Engineering will renew existing leases, which will generate rental income for Transnet and eThekwini Municipality, now standing at R17.5m per annum. Port premises in Durban and Cape Town, now leased from Transnet at full commercial rentals, generate R20.6m per annum for Transnet. Dormac employs 136 employees, and this investment will preserve these jobs. The investments are a catalyst towards the realisation of tangible economic interventions and improving the competitiveness of SA ports.Meanwhile, Hillside Aluminium will renew existing leases at the Port of Richards Bay for the bulkstorage silos facility, pitch tanks terminal, stock yard facility and the conveyor belt system effluent pipeline facility.
“Their investment further supports the competitive existence of a downstream aluminium industry directly employing about 11,600 people permanently, while contributing to the indirect formal employment of 28,500 people,” said Mbalula. The direct contributions include revenue to Transnet and the municipality of Richards Bay of R338m per annum, local procurement spend of R2bn per annum, and contribution to the tax base of R1.1bn per annum.
He said the ports infrastructure has been identified as a strategic area to drive government objectives of economic inclusion particularly regarding the participation of the historically
disadvantaged communities in the maritime sector, including women and youth.
In the context of the above article, discuss the various roles that transport plays in the economy.
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