Manuel commits R1-bn to road and rail

Ed Richardson GOVERNMENT HAS budgeted an increase of R1-billion in spending on road and rail services. This will bring the budget for the Department of Transport to R5 343 675 000. In his budget speech last week finance minister Trevor Manuel said this would "ensure that rehabilitation and investment raises economic activity and provides development. "As in last year's budget, investment in infrastructure is prioritised. "In addition to national and provincial capital spending, the investment programmes of public enterprises and public-private partnership agreements - including transport projects, government buildings and several eco-tourism initiatives - will contribute significantly to building productive capacity in the years ahead," he said. The Department of Transport says it "is also continuing to work on improving the road network, ensuring that it is well maintained and safe. "A new National Roads Plan is being developed, indicating the importance of roads to the economy. Rail transport, however, also has an important role to play, and the Department will continue to support the development of a rail network that is efficient, sustainable and competitive," it says in its medium term expenditure estimate. In order to promote passenger and freight rail transport, the Department will establish a rail safety management system to set standards and monitor the rail network. A rail economic regulator will be set up to regulate operators in the rail industry. This will support South Africa's growing success in export markets. According to Manuel "export diversification continues, both in non-traditional manufactured goods, tourism-related trade and growth in services exports. Manufactured exports grew from 9 to 20% of GDP between 1990 and 2000."