Logistics SOCs 'performing well'

Two of the three state-owned
companies (SOCs) singled out as
“doing well” by president Jacob Zuma
in his State of the Nation address
last week provide logistics-related
infrastructure.
“Sanral has built some of the best
roads in Gauteng and in many parts of
the country.
“Transnet has built rail
infrastructure which has enabled our
country’s mines to move massive bulk
of commodities through our ports to
markets around the globe.
“Eskom, in spite of the challenges,
still manages to keep the economy
going, against all odds,” he said.
Operation Phakisa has also
supported investment in the logistics
infrastructure of the country.
“Seven billion rand has been
committed in new port facilities,
following the adoption of a Public-
Private-Partnership model for port
infrastructure development by
Transnet National Ports Authority.
“We were concerned that South
Africa did not own vessels while
we are surrounded by about 3 000
kilometres of coastline.
“Through the oceans economy
segment of Operation Phakisa, we are
trying to solve this challenge.
“I am pleased that two bulk carrier
vessels have been registered in Port
Elizabeth, and a third tanker in Cape
Town under the South African flag.
“Another positive Operation Phakisa
development has been the launch of a
fuel storage facility here in Cape Town,
bringing an investment of six hundred
and sixty million rand,” he said.
Zuma did not hold out much hope for
the economic growth that would drive
cargo volumes.
“Our reality right now is that global
growth still remains muted. Financial
markets have become volatile.
“The economies of two of our
partners in BRICS – Brazil and Russia –
are expected to contract this year.
“China will not register the kind of
robust growth that it is known for,” he
said.
Labour relations were also linked to
economic growth by Zuma – possibly
for the first time in a State of the Nation
address by an ANC leader.