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John Rammutla

Economy
Infrastructure
Logistics

Transport evolution: a driver of international economic growth

Yesterday - by John Rammutla
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Transport infrastructure and planning are key enablers of trade and drivers of economic growth.

These networks represent invaluable assets, not merely in terms of monetary worth but in the significant socioeconomic benefits they bring.

The ability to move people, goods, and services seamlessly lies at the heart of modern life, connecting participants within the economy – businesses and individuals – and fostering progress.

South Africa, for example, boasts an extensive network of transportation assets, including vast roadways, comprehensive rail systems, air- land- and seaports and maritime networks.

Together, these form one of the country’s most valuable national assets. And yet, given the current state of prioritisation of infrastructure projects, it must be said that we need a long-term transport infrastructure vision that encapsulates how people will live, work and play – well beyond 2030.

Maintenance of existing infrastructure, and planning and development of new, future-ready infrastructure is fundamental to economic activity, and therefore to economic growth. The safe and reliable movement of goods, services, and people is essential to prevent stagnation.

Transport networks are vital in unlocking opportunities at both micro and macroeconomic levels, playing an instrumental role across mainstream and secondary economies.

The impact of efficient and well-thought-out transport networks extends far beyond functionality, influencing societal transformation and environmental outcomes. Through thoughtful planning and collaboration, transport systems can become catalysts for improved quality of life and community development.

By designing solutions to address specific needs – such as revitalising neighbourhoods, waterfront development, transit-oriented downtown improvements (TOD), or planning for regional growth – thorough planning helps turn transport infrastructure projects into defining landmarks that contribute meaningfully to society.

Effective strategies focus on equitable and inclusive designs that reflect the interests of all stakeholders from the outset. In this way, transport planning becomes a transformative force that enriches communities and economies alike.

Even the best-laid plans can fail without funding. Traditional funding models, such as reliance on government budgets or bank loans, often fall short of addressing the growing infrastructure demands faced by communities worldwide. In response, alternative financing approaches have emerged, leveraging both public and private resources to meet these needs.

These innovative financing models provide diverse opportunities to develop sustainable and impactful transport systems that align with contemporary economic realities. They ensure communities are equipped with the foundational infrastructure needed for interconnected growth and development.

For a country like South Africa, efficient planning, coupled with robust and innovative funding strategies, is essential for unlocking the potential of transport networks. Sincere collaboration between the public and private sectors must form the foundation of engagement for this approach to succeed.

Once open channels of engagement and trust can be established and cemented – based on mutual understanding of each party’s perspective and needs – immense opportunities for collaboration can be created. Currently, the magnitude of what can be achieved through collaboration is unmeasurable, but it could range from transferring skills to joint strategic planning initiatives, and delivery through joint ventures or public-private partnerships (PPPs).

In addition to more effective collaboration, leveraging Intelligent Transportation Systems (ITS) to digitalise transportation networks will further economic growth through efficiency and safety. ITS integrates cutting-edge information and communication technologies into transportation and traffic management to enhance safety, efficiency, and sustainability, while reducing congestion and enriching the driving experience.

These advancements offer road administrations the opportunity to revolutionise highway network management and operations. ITS enables automation of traditionally manual activities, real-time monitoring and adjustment of road network performance, and access to richer data sources that eliminate dependency on expensive physical infrastructure.

Furthermore, real-time data analytics allow for more dynamic decision-making compared with reliance on historical data, and road user behaviour can now be influenced through diverse channels like mobile devices and in-car systems rather than solely by road signs. To unlock the full potential of ITS, road administrations must adopt comprehensive strategies to unify existing systems, services, and operational methodologies over time, ensuring a seamless transition into a more intelligent and interconnected transportation future.

Driving a long-term vision through collaboration, and embracing new technologies, will be essential to unlocking the country’s true economic potential, and enabling the co-creation of more jobs, trade and cross-industry growth. This is because our modern lives are increasingly characterised by our ability to travel, transport assets and goods, and remain connected with other players in the economy.

South Africa – with 750 000 kilometres of roads, 20 953 kilometres of rail networks, 407 airports and 8 vital seaports along the coast – is well-positioned to leverage the power of transport infrastructure and planning to enable trade and economic growth. Considering the extent of our transportation-related assets compared to most other African countries, South Africa remains home to the most extensive transportation network on the continent – despite the challenges we have faced in maintaining and growing our transportation assets.

The key, now, is to plan, construct and maintain our infrastructure with a vision of the societal resilience that will continue to build and support the economy of future generations – for our own country, and our continent.

  • This column was inspired by the Transport Evolution that took place at Gallagher Convention Centre from 17-19 June.
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