State invests In Catalytic Infrastructure
25 March 2019
An estimated R227 billion worth of projects have been earmarked for implementation as part of the national Strategic Integrated Project 3 (SIP-3). TCTA coordinates this multi-billion-rand infrastructure rollout. It aims to develop the economy of the South-Eastern Node and Corridor of South Africa, an area encompassing the Northern Cape, Eastern Cape and KwaZulu-Natal.
There are R13, 7 billion worth of projects that are in the construction phase. About R10, 42 billion worth of related capital expenditure has occurred since 2012 when SIP-3 started.
At present, SIP-3 coordinates six active projects from the original twelve. The projects straddle mining, transport, energy, agriculture and water sectors. Most of them are government planned and financed, with a few being owned, funded and executed by the private sector.
Completed SIP-3 projects include the East London Strengthening electrification project, the Nelson Mandela Legacy Bridge, Mthatha bridge and roads, and the Mandela School of Science and Technology. Others are the Kalagadi Manganese Mine and Sinter Plant and the Mthatha Airport Upgrade.
There are 18 SIP packages in total that the Presidential Infrastructure Coordinating Committee (PICC) has identified and assigned various state-owned entities to coordinate. Each of the 18 is comprised of a bouquet of strategic and catalytic projects, where synergies can be achieved. The maximisation of impact is variously derived from, among other factors, integrated planning of value chains, management of inter-dependencies, and leveraging of lessons from similar projects.
The PICC has assigned TCTA with coordination of SIP-3 that aims, among other things, to strengthen the economic development of the Port Elizabeth area through the expansion of the Manganese Ore Rail & Port channel to Ngqura, which extends from the Northern Cape to the Eastern Cape Province. The former aimed to strengthen the economic development of the Port Elizabeth area through the expansion of the Manganese Ore Rail & Port channel to Ngqura, which extends from the Northern Cape to the Eastern Cape.
Among other objectives, this railway line upgrade was designed to promote beneficiation of manganese through a new sinter plant at Hotazel and a smelter plant and a Manganese terminal at Coega and simultaneously improving the export capacity of locally mined Manganese Ore.
The PICC envisaged that SIP-3 would unlock the industrial and export potential of the Eastern Cape through projects including the development of a multiple purpose transhipment hub at Ngqura. The project construction is 96% complete. The other initiatives include the establishment of the proposed Mthombo oil refinery in the Coega Industrial Development Zone precinct and the Greater East London Strengthening electrification project, which was completed in 2015.
Furthermore, SIP-3 aims to enhance the integration of the Eastern Cape Province with national supply chains through the N2-Wild Coast Highway and other transport-related projects such as the upgrade of the Mthatha Airport.
The state-owned entities that are project owners in the SIP-3 include Transnet, the Department of Energy, Eskom, South African National Roads Agency and TCTA. Kalagadi Manganese is the only project owner from the private sector. The projects being implemented or in feasibility stage include the manganese rail expansion project, the Ngqura Transhipment Hub, the Mthombo Refinery, the N2 World Coast Highway, the Kalagadi Manganese Smelter and MWP.