By Sinazo Mkoko
Delivering his budget speech in February this year, Finance Minister, Enoch Godongwana, said the government is implementing growth-enhancing reforms in key sectors, including the transport sector, to boost growth and improve the efficiency of South Africa's Transport and logistics infrastructure.
Hon. Godongwana said the public sector is projected to spend R903-billion on infrastructure, and the largest portion of this amount, around R448-billion, would be spent by state-owned companies, public entities, and public-private partnerships. The spending plans are mostly for strategic projects in different sectors, and transport and logistics would spend an estimated R351.1-billion, including for SANRAL to improve the road infrastructure network.
The National Treasury stated that constraints in logistics have negatively affected economic growth and employment.
"More than a quarter of long-distance freight traffic has shifted to roads in the past five years as a result of severe deterioration in the freight rail network. This is due in large part to historical underinvestment in the network."
The National Treasury said several reforms are underway to support recovery in the transport sector, and the Economic Regulation of Transport Bill, which will establish the transport regulator, has been tabled in Parliament.