Fostering Gauteng’s road to rail objective

The planned Tambo Springs
Freight and Logistics Hub
will enhance the logistics
capability not only of Gauteng
but of the whole of South
Africa, in the view of Anthony
Fletcher, director of Tambo
Springs Development Company
(TSDC).
“Container freight
throughput to Gauteng is three
million TEUs per year, and this
is anticipated to grow to four
million by 2020. This container
volume growth will exacerbate
existing problems like the
excessive use of the roads for
land freight transportation –
and concomitant high logistics
and social costs – caused by
the dramatic reduction in rail,”
he told FTW. “These problems
hamper the growth potential
of Gauteng and the country
as a whole. Tambo Springs
plans to handle 550 000 TEUs
per annum, which will make
a significant contribution
to dealing with growth in
container movement.”
In addition, he said, it
aimed to significantly enhance
Transnet’s strategic objective
of moving long haul container
freight from road to rail by
improving service levels and
cost efficiencies.
A socio-economic impact
study commissioned by
Gauteng province identified the
impact of the planned freight
and logistics hub.
“It is estimated investment
in the development equates to
a 0.81% increase annually in
Gauteng’s Gross Geographic
Product (GGP) over fifteen
years – or a 12% increase
relative to the initial GGP
basis,” said Fletcher. “The study
also found that it would have a
major impact on the Gauteng
GGP. The total economic value
added by the project relative
to the initial base is expected
to increase the Gauteng GGP
by 6.4%, which is significant,”
he said.
It will also have a
rates and taxes impact
based on Ekurhuleni
Metropolitan Municipality
(EMM) annual municipal
property rates. It is estimated
that R150 million could be
generated in property rates and
taxes annually ie, 5% increase
on the current income, while
the project has the potential
to increase national revenue
income over 15 years by
R21 billion (excluding local
rates and taxes).
“There is also the job
creation impact to consider,”
said Fletcher. “This project
alone is expected to increase
employment in Gauteng by
3.5% relative to the initial
base."