Transport
From The Report: South Africa 2014
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South Africa is home to the farthest-reaching and highest-quality transport network on the African continent. For decades the country’s extensive road, air, rail and sea links have underpinned economic and social development not only in the domestic market but through the region as a whole. In recent years the government has made a concerted effort to shore up South Africa’s infrastructure and connectivity, establishing a handful of large-scale, long-term capital investment programmes, including the 2012 National Infrastructure Plan (NIP), under which the state plans to spend $407.2bn on new and upgraded infrastructure across the transport, energy, water, sanitation, health and education sectors over a 15-year period. Major transport projects include a $1.54bn initiative to revitalise the country’s rail network and a $1.4bn plan to update and expand provincial bus lines. The rapid pace of investment and development in recent years is widely considered to be a reflection of both the sector’s many strengths and long-term potential for continued growth.

This chapter contains interviews with Nazir Alli, CEO, South African National Roads Agency Limited; and Monwabisi Kalawe, CEO, South African Airways.

Articles from this Chapter

Overview

With infrastructure spending on the rise, the sector is poised for expansion
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South Africa is home to the farthest-reaching and highest-quality transport network on the African continent. For decades the country’s extensive road, air, rail and sea links have underpinned economic and social development not only in the domestic market, but through the region as a whole. In recent years the government has made a concerted effort to shore up South Africa’s infrastructure and connectivity, establishing a handful of large-scale, longterm capital investment programmes, including…

Interview

OBG talks to Nazir Alli, CEO, South African National Roads Agency Limited (SANRAL)
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Interview:Nazir Alli Is South Africa’s land transport network capable of absorbing increased freight movement? NAZIR ALLI: South Africa’s road network is well equipped to meet the rising volume of freight and passenger movement. However, the development of rail capacity will assist in providing a much-needed balance for such transportation going forward. The national road network has grown over the past few years, from 16,000 km of road in 2013 to more than 21,000 km in 2014. This development…

Interview

OBG talks to Monwabisi Kalawe, CEO, South African Airways (SAA)
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Interview:Monwabisi Kalawe What impact have tariffs and fuel costs had on passenger demand and profitability? MONWABISI KALAWE: The biggest challenges to airliner profitability and passenger demand are exchange rate volatility, rising fuel costs and sluggish economic growth. The South African rand has weakened substantially against the dollar in the past year or so, which has had a direct impact on fuel prices as well as maintenance and other foreign supplier costs. Many airlines, like SAA,…

Analysis

Investment in key regions is set to boost productivity and efficiency
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South Africa’s National Infrastructure Plan (NIP), which was launched in 2012 and is expected to run through 2027, is organised into 18 Strategic Integrated Projects (SIPs), including initiatives aimed at catalysing development and growth in the areas of energy supply, social infrastructure, health and education provision, and water and sanitation networks. Under the first five geographically focused SIPs laid out in the NIP document, the federal government aims to establish (or, in some cases,…

Analysis

Rapid mass transit is on the rise throughout the nation’s urban areas
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With growing demand from a cost-sensitive population and increased congestion, South Africa’s investment in public transport has skyrocketed in the past decade. In addition to refurbishing existing rapid transit networks – such as the Metrorail, which operates across five separate metro areas – in recent years the government has also launched a handful of high-profile projects, including the Gautrain, a rail and bus network that covers a large geographical area north of Johannesburg; and bus…