Set to service Johannesburg, Gauteng and Southern Africa, Inframax MD, Dr Willie Els, says that the project has the potential to put the region’s entire logistics capability into a new and far more efficient era and to create thousands of jobs whilst stimulating the area’s GDP.

“It is,” says Els, “fairly widely thought that Johannesburg’s freight logistics needs have not been fully understood or appreciated by most of the public sector authorities and agencies serving this area over the years.  As a result, the current situation is characterised by excessive use, and wear, of roads by freight operators, dramatic decline in rail usage (due to poor service levels), increased congestion and fragmented freight planning.  South Africa’s freight logistics system is not meeting the country’s needs and not keeping up with the way the world is moving.”

The proposed new inland port and logistics gateway, says Els, will contribute significantly to meeting Gauteng’s need to increase the current freight logistics capacity/throughput in and out of Johannesburg, to 3 million TEU’s by 2015 and 4 million TEU’s by 2020 - with further increases thereafter.

The 630ha site for the new project, which will be called Tambo Springs (the original farm here was known as Tamboekiesfontein), is situated 25km southeast of the Johannesburg CBD.  Inframax plans to add at least a further 600ha to this site in time, which would enable it to be developed to a world class inland port and logistics facility.

“This,” says Els, “is appropriate as Gauteng is not only the largest metropolitan area in Africa, but is also one of the largest in the world, with a population of 10 million people generating the largest annual GDP in Africa.”

Inframax has commissioned GAPP Architects and Urban Planners and the internationally recognised logistics consultants, Franco Eleuteri and Associates, to help them structure the concept and business plan for Tambo Springs.  GAPP, says Els, are a well known local firm who have been acclaimed for such work as the Umhlanga Ridge New Town Centre North of Durban and the Cape Town Waterfront.  Eleuteri, who was born and raised in South Africa, is based in Dallas, Texas, and has been involved in the development of Inland Ports, IDZ’s and other logistic centres in Chicago, Dallas Fort Worth, Los Angeles and Monterey in North America.  He is also able to draw on experience acquired in similar developments in Asia and Europe.

“One of the things which has become clear from our association with Franco,” says Els, “is that the logistics challenges now faced in Johannesburg/Gauteng have cropped up worldwide wherever cities have expanded fast.”

“Typically,” says Els, “the original logistics centres were developed on what was then the periphery of the cities.  Over the years, however, these cities grow and absorb the centres, making expansion and/or upgrading to accommodate new demands difficult.”

This, he says, is more or less what is happening to Johannesburg’s City Deep Terminal, which was established in 1977 as a bonded inland container depot where containers from Durban could clear customs in Johannesburg. 

“City Deep still has a vital role to play but the time has come to have it operating in tandem with a larger inland port or ports located on the new city periphery and able to accommodate a large efficient intermodal capability  for road, rail and air transport.  This is fundamental to any 21st Century freight operation.” 

In choosing a site for a new next generation inland port there is, says Els, a checklist of factors which have to be in place before it can be considered – and Tambo Springs scores exceptionally well on such a list.

“The first essential for such a port,” says Els, “is that it has to have fast, easy access to the country’s major road and rail networks, linking it to the big industrial centres and the country’s major sea ports.

“Tambo Springs is exceptionally well positioned in this respect as it is located in the southern periphery of Johannesburg and within the Johannesburg/Durban road freight and rail corridor.  It has, therefore, access to the N3 freeway to Durban (South Africa’s major freight transport route), to the N1 to Cape Town and via the R390, to Port Elizabeth and East London as well as to other freeways to the industrial centres just south of Johannesburg:  Heidelberg, Vereeniging, Vanderbijl Park and Sasolburg, all of which are within 20 to 60km.  The site is also only 22km from the City Deep Terminal and 25km from the OR Tambo Air Freight Terminal.  These excellent road linkages will allow the site to accommodate both FTL (full truck load) long distance road freight and LTL (less than truck load) regional distribution.

“On the freight rail side,” says Els, “the existing dual directional links already run through the site to all the areas mentioned above.  Accordingly, the Tambo Springs development can contribute significantly to optimising the country’s existing infrastructure, particularly that of the Ngqura Deep Water Port near Port Elizabeth.  More optimal usage has the potential to increase this so called Eastern Corridor’s share of South Africa’s freight handling from +-14% currently to 21% in future.  This is important given congestion issues with Durban.

“A further essential element of Next Generation inland ports such as Tambo Springs,” says Els, “is to have sufficient reasonably priced land to be able to accommodate an intermodal rail yard capable of handling point to point movement of freight using ‘block trains’ up to 1,5km to 2km in length and integrating the exchange of goods to and from the trains with road and air transportation systems.

“There must, too, be sufficient land to perform value added logistics functions on site as an integral part of the transportation functions.  It is for this reason that Inframax is assembling ±1 200 ha of land for the Tambo Springs development.

“Finally,” says Els, “as the whole aim of a development of this kind is to increase freight handling efficiency and improve service, it is important that the most advanced telecommunications backup is available – including high speed broadband and sophisticated IT systems.

“With all these elements in place,” says Els, “it is possible to establish twinning arrangements, with an agreed set of operational procedures, between the coastal ports and the new inland port/logistics centre.  Once these have been clearly defined and understood, he says, they can make a tremendous difference to the functionality of the new port and the efficiency of the local logistics system as part of the Global Supply Chain.

“Developments of this kind,” adds Els, “have internationally led to ancillary development and the overall plan has to make allowance for this.  Typically, this involves the following, which the planning of Tambo Springs will accommodate:

• freight transportation and logistics focussed development including an intermodal yard with rail access;
• value added logistics park as an economic development zone forming part of a (sea, air, road, rail) logistics gateway with a focus on accommodating businesses involved in the transportation, processing, manufacture, warehousing and distribution functions;
• an ancillary business park accommodating a commercial development component;
• the development of a retail support component for the above; and
• the development of a consequential residential component which enables the occupants to work, live and recreate on site without having to travel large commuting distances.   The residential component in turn, will require social facilities such as schools, sports clubs, churches, and the like.

“One of the great benefits of being able to work on a new greenfields project of this kind,” says Els, “is that it is possible from the outset to implement green and eco-focused plans which ensure a minimum of pollution and a steady improvement of the environment.  This not only greatly improves the quality of life of those moving in there, but it also makes the project more attractive to First World firms which have come to expect this standard of development.”

“Tambo Springs, which will be developed in phases, is expected to take about ten years to reach full fruition.   The first phase is anticipated to involve an initial investment of ±R1 billion,” said Els.

“Projects of this size, scale and impact are typically in the international experience carried out with public/private partnership arrangements which have mutual benefits for both sectors,” says Els.  “For this reason, while this is a private sector driven initiative, Inframax has from the outset engaged with key public sector authorities and agencies to canvass in principle policy support for the initiative.  These include Gauteng Department of Economic Development; Blue IQ; Transnet Freight Rail and Ekurhuleni Municipality, among others.  In addition, Inframax is currently engaging with potential private sector stakeholders to help finalise the business plan for the development.” 

“At the end of the day,” says Els, “the success of the development will depend on how successfully it addresses the business imperatives of companies in the logistics arena.”

Els pointed out further that in addition to enhancing the logistics capacity and efficiency of South Africa, the project will have other significant economic, social and environmental benefits, including:  the creation of decent jobs on a large scale; creating business opportunities for both large established companies and SMME’s; the enhancement of GDP for both Gauteng and Ekurhuleni; contributing positively to the achievement of Gauteng’s Economic Growth and Development Strategy; the upliftment of the deprived areas immediately north of the site, i.e. in the greater Katorus area;  enhancement of Sustainable Human Settlements and the enhancement of Gauteng’s and SA’s position as an economic driver/conduit in Southern Africa.

“Particularly exciting,” says Els, “is the job creation potential of the initiative, given that high unemployment is one of the biggest challenges in South Africa.  Citing the example of a similar development at Interpuerto, Monterrey, in Mexico which has similar challenges, Els points out that the number of jobs that can be created from a project like this can range from between 37 000 to 57 000, of which between 28 000 to 42 000 are expected to be from logistics operations and 9 000 to 14 000 from ancillary associated activities.”
 
“The Tambo Springs development,” says Els, “provides the opportunity for public and private sector partners to participate in financially viable ventures, while acting as the catalyst for initiatives focussed on strategic goals and economic development in Southern Africa.”