Tambo Springs’ next-generation inland port and logistics gateway promises to be a catalyst for job creation and economic development

The need

The further development of South Africa’s transportation and logistics infrastructure is critical to its efforts toward economic development and job creation.

This is because logistics efficiency directly affects the ability of the country to produce and export products in addition to the cost of imported goods.

As a result, countries strive to reinvent themselves in order to maintain and improve their competitive positions, address quality of life issues, while meeting the needs of the global supply chain.

Critical elements of new transportation and logistics solutions consider:

• The growth of large sea-going vessels that provide improved economics in container transportation, but require deepwater port locations;

• The increased use of dedicated freighter aircraft and the evolution of express air freight hubs;

• The use of extended intermodal (COFC, TOFC), block trains where average train lengths reach 6 000ft (1.8 kilometres), while longer, high-volume corridors can reach 12 000ft (3.6km);

• The creation of logistics and free/special trade zones adjoining getaway locations, as an integral part of the supply chain; and

• The development of operationally twinned sea and inland port locations that seek to secure and facilitate trade.

These needs, together with the significant increase in the volume of freight handled in South Africa – which has exceeded past projections – motivate the need to create a next-generation transportation and logistics infrastructure.

Gauteng growth characteristics

Gauteng’s existing population exceeds 10 million inhabitants and can be expected to exceed 13 million by 2018, which is expected to increase from 20.5% of South Africa’s total population in 2005 to 29.3% in 2050.

Therefore, it must meet growth requirements, where container movement to the province is projected at over three million 20-foot equivalent units (TEUs) per annum in 2015 and four million TEUs per annum in 2020.

Underlying elements of the existing situation identified include:

• Excessive use and wear of roads by road freight operators;

• A decline in rail usage due to poor service levels;

• Increased urban congestion affecting deliveries;

• Fragmented freight planning by multiple players; and

• A lack of focus on freight.

These issues need to be addressed as part of a next-generation solution focused on the needs of the global supply chain, which include:

• Creating an integrated multimodal (air, road, rail, sea) logistics capability;

• Providing improved levels of service using a variety of transportation modes and types as an integrated logistics capability;

• Improving the ability to move freight to and from Gauteng as part of its inland distribution network;

• Implementing multifunctional solutions that incorporate the working, living and recreation environments;

• Achieving environmentally friendly solutions, including the reduction of road freight via efficient intermodal movement; and

• Addressing the needs of the extended global supply chain that incorporates order-taking and fulfilment (manufacturing, transportation, customisation and delivery) activities.

This new model has the objective of achieving a quantum leap from the existing to a next-generation operating capability.

Next-generation inland port

The creation of Tambo Springs as master-planned next-generation inland port is critical to Gauteng’s ability to achieve accelerated economic growth.

The site characteristics of the planned development include:

• Being located adjoining a major freight road and rail transportation corridor on the periphery of the catchment area it serves;

• Adjoining a multimodal (road-rail) connector loop;

• Having the ability to accommodate unbroken extended length block/unit trains efficiently;

• Serving both full-truck-load, long-distance road movement, in addition to less-than-truck-load regional freight distribution;

• Having enough land to perform adjoining value-added logistics functions as an integral part of the transportation function;

• Being part of a twinned inland/seaport operational capability; and

• Having access to an adjoining labour pool.

The site therefore both provides direct access to the rail and the road infrastructure connecting South Africa’s major container ports and metropolitan areas, in addition to being able to serve the Gauteng catchment area.

It is therefore ideally located to act as an entry/exit point to the Gauteng catchment area on a 1 200-hectare site, while enabling the creation of a competitive environment for the manufacturing and processing of goods as a means for job creation and economic development – the objective being not only to focus on an improved logistics capability, but also to create the environment to attract foreign direct investment and the establishment of new enterprises.

On the basis of successful back of port/inland port, special economic/export zone and industrial city developments, the job creation potential of the Tambo Springs project within the inland port area over a 15-year period is estimated at 50 000 full-time positions, while providing a benefit to approximately 120 000 household members.

In addition, the spin-off effect on other industrial and logistics areas within Gauteng is expected to create a further 50 000 full-time positions in the field of manufacturing, while not including any of the opportunities created from the “soft” side of the supply chain.

Furthermore, all these positions are in addition to any organic growth that would naturally occur within the catchment area, should this next-generation capability not be created.

Twinned inland port and land bridge

The Tambo Springs initiative involves creating a significantly improved intermodal capability for the movement of freight to and from Gauteng. This is to be achieved by the operational twinning of the inland port with other seaport and cross-border locations.

The initial phase of this programme involves the twinning of Coega industrial area and Ngqura deepwater port with Tambo Springs.

The initiative involves the creation of a secure and bonded sprinter freight rail link between the two locations, which incorporates:

• Intermodal terminals at both ends of the land bridge;

• Adjoining industrial/logistics zones;

• Dedicated block/unit train movement between the two locations; and

• Secure and bonded transportation as part of an integrated operational capability.

This is to be undertaken by means of a private sector venture that utilises the Transnet rail capability between the two locations.

The service level to be achieved for the movement of the freight via this land bridge has a 24-hour objective from a container entering to exiting the system.

To achieve this involves the use of highly efficient intermodal capabilities integrated with the port functions and their associated feeder networks.

An integrated multifunctional solution

The development of Tambo Springs as a globally competitive solution focused on economic development and job creation involves the creation of a multifunctional working, living and recreational environment.

The goal is to create a self-sustainable environment that minimises the travel distance to the workplace, while incorporating commercial, institutional and recreation areas.

Consideration is therefore both given to operational requirements while addressing human resource/sociological issues in the creation of the built environment. This includes the creation of an incubator to stimulate the establishment and growth of new ventures.

The objective of implementing a multifunctional master development is to create a preferred location for the establishment of new enterprises, while improving the quality of life of the existing adjoining residents.

The initiative therefore creates a world-class logistics infrastructure as part of an overarching programme, with the goal of providing a location attractive to the multinational corporation for the establishing of new facilities.

A catalyst for cross-border economic developments

The creation of a next-generation inland port and logistics gateway will provide a catalyst for economic development both within the Gauteng catchment area and those connected locations. This includes operationally twinned sea and inland port locations with their associated logistics/industrial/special development zones.

The advantages gained from the Tambo Springs development can therefore extend to cross-border locations as part of a network of inland port locations, extending into Central Africa.

Significant improvements in job creation and quality of life require an all-encompassing approach that extends beyond the transportation function.

Next-generation concepts and standards, addressing levels of service, quality and security issues need to be implemented as an integrated network as part of the global supply chain.

The new model then provides the basis for the development of other associated or synergistic ventures as a generator for regional economic development.

Franco Eleuteri

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