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16 October 2008

Programme Director
Mayor of the Khara Hais Municipality
Officials from Siyanda District and Khara Hais Municipality present
Representatives of the Airports Company of South Africa
Representatives of Nocci and other business representatives
Members of the media
Ladies and gentlemen

As I was coming to this workshop this morning, I could not help but think of the sterling work that Airports Company of South Africa (ACSA), the Khara Hais Municipality and other key socio economic stakeholders have done on the development of the Upington Cargo Hub.

Indeed, the development of the Upington Cargo Hub is a commendable effort by government, business and labour to create work opportunities and reduce the levels of unemployment for our people.

I am sure all of us gathered here are acutely aware and fully conversant with government’s policies and programmes of creating jobs and eradicating poverty. Guided by the Reconstruction and Development Programme, our vision is to build a society that is truly united, non-racial, non-sexist and democratic. Central to this is a single and integrated economy that benefits all.

Ladies and gentlemen, within the context of achieving our targeted 6% economic growth for the province, we are aware of the fact that an efficient and competitive freight transport environment is critical to the long term economic and social well being of the Northern Cape populace. Most significantly, the Cargo Hub will create an estimated total inflow of R1, 4 billion into the Upington economy.

The Northern Cape Province can be viewed as an extreme example of the challenges South Africa as country faces in terms of freight logistics. Two features stand out in particular: the province’s rurality as it is by far the most sparsely populated province in the country; and its long travelling distances when compared to South Africa’s main economic centres and major ports.

The overall objectives, as defined by the Provincial Growth and Development Strategy, suggest that the freight transport strategy is designed to support the achievements of four broad goals: namely, business competitiveness, inclusion, sustainability and safety, and coordination and direction.

Of these goals, the third one, sustainability, is remarkably important to us. For example, about seventy eight tons of cargo per week is flown from Upington during the busiest months of November to January. Essentially, what this means, ladies and gentlemen, is that activity in the airport is seasonal and not sustained throughout the year. As a result, OR Tambo International Airport is being seen as the only main gateway for freight in the country.

What we are saying now is that we want the exporting of products from the Upington Airport to be consistent and continuous throughout the year. As Upington is centrally located between key South African major areas, it is paramount for us to market this airport as a viable alternative to OR Tambo for cargo traffic.

Fundamentally, we need to constantly highlight the fact that the development of the Cargo Hub represents considerable and attractive benefits for users in that there is less congestion, a quicker airport turn around time, potential for payload factors and lower handling and airport charges.

About seventy hectares of land has been earmarked for this project. Within these seventy hectares, there will also be the establishment of a designated area for aircraft maintenance and storage service, whereby older aircrafts can be parked in circumstances similar to those found in Middle Eastern countries and other semi desert areas of the world. Aircrafts will also be maintained for future use or stripped for the recycling of spare parts in this designated area.

Chief among these initiatives, it has been recognised that an essential condition for this airport’s success would be the support of the major international airlines and key importer and produce exporter groups. Indeed, the future for freighter aircraft is not in the commercial passenger airports of this country. Upington can definitely be a viable alternative.

Programme Director, it is without saying that as government we cannot embark on these initiatives without the support of business, labour and other key socio economic partners. It undoubtedly gives us pleasure to have them among us today.

The marketing and promotion of the Upington Cargo Hub remains one of our key priorities. I read with keen interest an article in the Business Report dated 5 April 2006. One analyst commented in this article that he cannot help but wonder as to why the South African Chamber of Business did not consider Mafikeng as a hub and an alternative to OR Tambo.

The commentator further says and I quote: “I have to point out that the existing navigational aids at Mafikeng Airport are superior to those at Upington. Also, Mafikeng would be under the highly sophisticated radar control system operated from Johannesburg International, due to its proximity. The imagined Upington Hub is a long way away while the alternative could, with a bit of imagination and inspiration, become a reality in the short term.”

Ladies and gentlemen, this commentary alone tells us there is misunderstanding by certain individuals about this project. There clearly needs to be a vigorous marketing and promotion campaign on it. Some among us will recall that the Northern Cape Province hosted the International Trade and Investment Expo in Kimberley in August last year. The purpose of this Expo was to provide a platform and showcase South African products and services with buyers and exhibitors from targeted Asian and other countries.

In partnership with ACSA, we showcased the Upington Cargo Hub at this event; we saw this as a unique opportunity to provide and strengthen relationships with potential investors that also attended. With this in mind, an Expo, similar to the one held in the province last year, will take place from tomorrow until Sunday at the University of the Free State, Bloemfontein. Again, together with ACSA we will have an exhibition stall of the Upington Cargo Hub at this year’s Expo.

Ladies and gentlemen, in closing, October month is transport month. Guided by the theme: “Transport Infrastructure creating a lasting legacy 2010 and beyond,” this year’s transport month seeks to raise awareness of the role of transport in the South African economy and also to invite participation from civil society in providing a reliable transport system for the country for 2010 and beyond.

I thank you.

Issued by: Department of Transport, Roads and Public Works, Northern Cape Provincial Government
16 October 2008