Competitive tariffs also promised, writes Ed Richardson
TRANSPORT WAS identified as one of the main focus areas to improve the competitiveness of South African industry by president Thabo Mbeki in his state of the nation address to parliament last week.
Mbeki pledged government to the liberalisation of the transport, energy and telecommunications sectors.
In the transport sector, among other things, new investments will be made and restructuring effected in the rail, road and port infrastructure, he added.
To improve our competitiveness, we must lower input costs throughout the economy, Mbeki told Parliament.
Accordingly, we have decided to go over to a managed liberalisation of the energy, transport and telecommunications sectors.
With regard to all these sectors, all outstanding policy matters, including the regulatory frameworks, will be addressed leading to the creation of the necessary climate of certainty for both public and private sector investors, said Mbeki.
Developments promised for the transport sector include the construction of a deep-water port at Coega 20 kilometres east of Port Elizabeth, and the granting of concessions to private operators within the existing ports. Mbeki said competitive tariffs would also be introduced into the ports.
Steps will also be taken to increase the number of flights to and from South Africa and a final decision will be taken on a new international airport outside Durban.
With regard to the energy sector, among other things, our decision will entail restructuring the electricity supply and distribution industries to introduce greater levels of competition. Independent Power Producers will be allowed into our energy system and localised energy grids for rural areas will be developed, he said.
Other sectors that will receive special attention because of their potential to contribute especially to the objectives of higher growth rates and job creation include agriculture, tourism, certain export sectors, cultural industries and the information and communication sector. Export sectors identified by Mbeki include agro-processing, automobiles and components, mining technology and minerals beneficiation and clothing and textiles. Mbeki also promised to address skills shortages in certain industries. Immigration laws and procedures will be reviewed urgently to enable us to attract skills into our country. Improvements in maths and science education will also be prioritised.
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