Limpopo InfrastructureIndaba

1-2 December 2008

Meropa Casino Polokwane

PRESENTATION FROM THE

SOUTH AFRICAN NATIONAL

ROADS AGENCY LIMITED

(SANRAL)

2 DECEMBER 2008

I ESSA

INTRODUCTION

“WHERE ROADS GO, WEALTH FOLLOWS”

RELATIONSHIP BETWEEN ROAD INFRASTRUCTURE AND ECONOMIC

DEVELOPMENT - 1

Question: Does Road Infrastructure bring about economic growth or does economic growth lead to the financial capacity to invest in road infrastructure?

•Egg / chicken?

Relationship - 2

• Existence of infrastructure on its own does not facilitate economic growth

• Potential economic resource has to exist

• Road infrastructure will then enhance this potential growth further

Relationship - 3

Benefits of road infrastructure are transmitted as:

• Improved network performance once the new or

improved infrastructure is in place– Reduction in vehicle operating costs

– Reduced travel time per trip

– Multiplier effect on other sectors of the economy

– Job creation

– Poverty reduction

Relationship - 4

In an urban context:

• Road infrastructure should be “demand” driven

• The “demand” be mandated by land use development– As and when required

– Rezoning or land use charged

GENERAL CONCLUSIONS

• Road infrastructure has both a direct and indirect impact on overall economic growth

• Impact of Public Sector infrastructure investment on private sector investment in physical capital is strong

NATMAP REPORT PHASE 2

NATMAP ANALYSIS CONCLUDES:

Roads in Limpopo are in a “fair” condition

Roads have spare capacity

Future road corridor developments be further appraised•R37 Dilokong corridor•R33 East-West corridor•R71 Polokwane to Moria

NATMAP REPORT PHASE 2

Analysis of roads in Province per road authority

Total roads in S.A. 448 000 km

Limpopo roads

22 200 km or 5% of total national network

Authority Km’s

SANRAL 3200

RAL = Dept of Roads & Transport 7270

Local & District Authorities 11730

Total 22200

SANRAL’s

PLAN & PROGRAMME FOR

ROADS INFRASTRUCTURE

FOR THE PERIOD

2008-2011

SANRAL’s ROAD NETWORK IN THE PROVINCE

SANRAL’s

FUTURE EXPENDITURE IN THE PROVINCE

FIN. YEAR TOTAL EXPENDITURE CAPEX & OPEX

STATUS

2008/9 R560 MILLION Approved & being spent

2009/10 R480 MILLION Budget

2010/11 R529 MILLION Budget

ROADS/ROUTES IN THE SANRAL NETWORK THAT REQUIRE DEVELOPMENT IN

THE MEDIUM TO LONG TERM 1

Polokwane Ring Road to the east

• Tenders closed 28/11/08

• Construction start March 2008

• Completion 2 stages– Stage 1: Completion of 6km section from North to

stadium to be completed by end May 2010

– Stage 2: Completion of the balance of contract by May 2011

continued

Mussina Ring Road EIA investigations have commenced• Construction to start in 2010• Makado (Louis Trichardt)

– Investigate alternatives to keep passing traffic and local traffic apart

• Tzaneen– Investigate alternative alignments to keep local &

passing traffic apart• R33

– Possibilities of incorporating into national network in the near future??

OVERALL CONCLUSIONS ON THE OVERALL IMPACT OF ROADS INFRASTRUCTURE ON

ECONOMIC GROWTH

• Higher economic growth rate requires rapid infrastructural development

• Higher levels of export require sufficient roads so that the goods can reach their point of export (airports, harbours etc)

• Rapid infrastructure delivery is more achievable by road rather than rail especially in the urban areas

OVERALL CONCLUSIONS ON THE OVERALL IMPACT OF ROADS INFRASTRUCTURE ON

ECONOMIC GROWTH

• More affluence amongst the populace leads to more vehicles and a greater desire to travel due to affordability

• Infrastructural development is a strong advantage of a nations competitive advantage (Porter)

– Cost

– Differentiation

• Rapid Growth – rapid urbanisation – better road network

THANK YOU FOR YOUR ATTENTION

QUESTIONS