Integrated Freight Logistics Strategic Framework Action Plan for

Integrated Freight & Logistics Strategic Framework & Action Plan for e. Thekwini Transport Authority Paul Sessions Transport Economist e. Thekwini Municipality * Paul. Sessions@durban. gov. za ( (+27) 31 311 7809 (+27) 72 356 6454 1

Project Overview & Objective STATUS QUO ANALYSIS: Conduct comprehensive status quo analysis of freight in e. Thekwini STRATEGIC FRAMEWORK: Develop 20 year integrated freight & logistics strategy ACTION PLAN: Develop implementation plan Data collection & analysis Reduce logistics costs Infrastructure Institutional Development Stakeholder engagement Increase logistical efficiency Operations Communication International best practice Reduce negative impact trucking Policy & Regulations Funding Forecast & freight flows e. Thekwini competitive advantage Land Use STAKEHOLDER ENGAGEMENT 2

Status Quo Findings Heavy vehicles counts on major corridors Cato Ridge N 3 H/V per day = 6007 % Container = 7. 8% % Dangerous = 3. 5% Pinetown M 13 H/V per day = 925 % Container = 6. 4% % Dangerous = 2. 7% N 2 / N 3 Marian Hill N 3 H/V per day = 5886 % Container = 6. 9% % Dangerous = 4. 9% Northdene M 7 H/V per day = 4698 % Container = 10. 6% % Dangerous = 6. 7% H/V per day = 1798 % Container = 4. 6% % Dangerous = 3. 1% Bayhead Road H/V per day = 8268 % Container = 42. 8% % Dangerous = 4. 7% 3

Status Quo Findings Logistics activity by industrial area (% of all logistics by area) 5. 9% 20 km from port 70% 50. 6% 3. 9% 4

Status Quo Findings Container movement from/to port 80. 3% Export TEU 62. 3% Import TEU 5

Status Quo Findings Future Growth & Challenges Year Containers Car Dry Bulk Liquid Bulk (million TEU) Units (Tons ‘ 000) (‘ 000) Break Bulk Port Heavy Rail Modal (Tons ‘ 000) Vehicles Share (%) (per day) 2013 2. 65 497 10 077 30 856 2 017 10 376 Container = 16% Cars = 50% Dry Bulk = 50% 2020 3. 54 577 10 834 35 336 2 120 11 865 Container = 30% Cars = 80% Dry Bulk = 60% 2030 5. 43 792 12 640 48 367 2 381 15 534 Container = 30% Cars = 80% Dry Bulk = 70% 2040 8. 21 1 121 15 160 66 391 2 753 21 691 Container = 30% Cars = 80% Dry Bulk = 70% 6

e. Thekwini Freight Vision Integrated Development Plan: Vision By 2030, e. Thekwini will enjoy the reputation of being Africa’s most caring & liveable City, where all citizens live in harmony. Freight & Logistics Vision for e. Thekwini By 2030, e. Thekwini will be the freight and logistics gateway into Southern Africa, providing a world-class freight system and infrastructure with seamless movements between modes, origins and destinations of freight. Freight activities will be key in supporting e. Thekwini's industrialisation, while freight movements and operations will be efficient, cost effective and minimise the negative impact on residents and commuters. 7

Freight & Logistics Strategic Framework Development Logic Infrastructure Policy & Regulation • Policy revision • Route hierarchies • Road infrastructure • Port & Rail infrastructure • Truck Stops • Intermodal Facilities • Truck Staging Areas • Weigh Bridge /WIM • ITS & Traffic Signage Land Use Operations • Incident Management System • Freight Management System Institutional Development • Freight Land Use Plan • Port Land Use Interface Zone • • Communications • Freight Communications Strategy Funding • Funding sources • Incentives & penalties Road rail liaison Incident management, Incentives / penalties Dedicated freight resources 8

Timeframes of interventions 2015 -2020 2021 -2025 2026 -2035 • • • Freight Route 1 a, MR 577 & M 7/N 2/N 3 CR & CFPM T-Stops 1 Intermodal Facility 2 Truck Stops Freight Traffic Signs and enforcement on all routes • 5 Truck Staging Areas • 2 Weighbridges and 7 Weigh in Motion Stations • M 7, DFR 1 b, N 2/N 3 , MR 579 and • • Update Land-use plan • Enforce Town Planning Scheme • Plan and implement interface zone • Revise land use plans • Enforce Town Planning Scheme • Policy Lobby Group • Implement Transport Policy • Hazardous/Abnormal Freight Routes • Monitor and lobby policy revision • Revise freight routes Operations • Incident Management(IM) • Freight Management system • Implemented Incident Management • Expand Freight Management System • Implemented Freight Management System • Expand Freight Management System Institutional development • Road rail liaison • Incident management, • Incentives / penalties • Dedicated freight resources • Funding mechanisms • Expand Hazardous Freight • Increase HFMT capacity • Increase FMU capacity • Prepare incentives for reduction in Funding • Funding sources • Incentives and penalties • List projects that are PPP candidates • Government Funding Options • Identify funding sources • Identify Investors • Identify funding sources Communications • Freight Comms Strategy • Communications Strategy • Communication actions • Communications actions and Infrastructure • Road infrastructure • Truck Stops (TS) • Intermodal Facilities • Truck Staging Areas (SA) • Weigh Bridge /WIM • ITS and Traffic Signage Land Use • Enforcement of Freight Land Use Plans • City & port interface zone Policy and regulation • Policy revision • Route hierarchies Management Team (HFMT) • Establish Freight Management Section (FMU) at e. Thekwini Municipality • Dedicated Metro Police • • • R 603 2 Intermodal Facilities 4 Truck Stops 3 Truck Staging Areas 4 Weighbridges and 4 Mobile Weighbridges Port expansion emissions monitoring • • N 2/N 3, R 603 and MR 579 1 Intermodal Facility 2 Truck Stops 3 Truck Staging Areas 10 Mobile Weighbridges Rail upgrade Increase DMU capacity Increase FMU capacity Prepare penalties for emissions Implement short haul rail operations monitoring 9

2015 – 2035 Infrastructure Interventions Port Expansion Infrastructure Interventions Road upgrade required Truck stop Truck staging area Intermodal hub Weigh-In-Motion Weighbridge Rail upgrade 10

e. Thekwini Transnet Integrated Freight Transport Systems Plan Broad Scope of Work Paul Sessions Transport Economist e. Thekwini Municipality * Paul. Sessions@durban. gov. za ( (+27) 31 311 7809 (+27) 72 356 6454 11

Background - Anyport model Describes Seaport Development (Notteboom T. , Rodrigue J. 2005) Setting (Port City) Port City General Cargo Bulk Cargo Expansio n (Port Area) Containeriz ed Cargo Urban Area Specialisation (Port Region) Regionalisation (Port Network) Reconversio n Area Freight Distribution Centre Freight Corridor 12

Goal • The purpose of the project is for Transnet and the e. Thekwini Municipality jointly develop and implement an integrated, sustainable transport system that supports the port developments, city growth and enhances the region and its residents: • So that by 2030, e. Thekwini Municipality and the Port of Durban are the premier freight and logistics gateway into Southern Africa and Africa • With a completely integrated world-class freight system and supporting infrastructure, ensuring seamless movements between modes, origins and destinations of freight • Where the movements of freight will be efficient, cost effective and the associated negative externalities on residents and other commuters would be minimised or preferably avoided • Freight activities should become the key drivers in supporting e. Thekwini's industrialisation that ultimately drives port volumes and port growth 13

Objective • To develop and agree on an optimal framework for: • • • Rail Road Port Land use Systems Supporting logistics facilities / regulatory functions • Based on the Integrated Freight and Logistics Strategic Framework for e. Thekwini, in line with the complete port expansion plans and anticipated cargo volumes • By July 2017 • Within the South Durban Basin 14

Approach • Transnet and The City propose to use the IFLS as a basis for the development of a supply chain model that guides the development of an integrated framework, covering the following elements: • • Infrastructure; Operations; Policy & Regulation; Land Use; Institutional Development; Communications; and Funding. 15

Port of Durban DDOP Back of Port Intermodal Hub & Freight Logistics Nodes with transport corridors • National freight distribution • • Indicative project boundaries Seaport Intermodal hub Freight & Logistics Nodes 16

Port Expansion Infrastructure Interventions Road upgrade required Truck stop Truck staging area Intermodal hub Weigh-In-Motion Weighbridge Rail upgrade 17

TASK 1 Completion Progress Date Status Quo Assessment 1. 1 Review of all work done to date by Transnet & e. Thekwini 1. 2 Environmental/social assessment 2 15 March 100% 2 June 72% 26 April 75% 26 June 13% 29 August 12% Port City Land Use Rationalisation 2. 1 Bayhead Land use and Rental Assessment 2. 2 South Durban Land use Assessment 3 Supply Chain Assessments 3. 1 Physical flow analysis 3. 2 Information flows 3. 3 Regulatory and legislative environment for the commodity flows 4 Develop Desired Optimal Freight System Framework 5 Develop Implementation Plan 5. 1 Infrastructure; Operations; Policy & Regulation; Land Use 5. 2 Develop scenarios with corresponding conceptual options for each sub-task 5. 3 Develop a multi-criteria analysis & conduct performance, cost and demand assessment for the various conceptual options 5. 4 Develop integrate conceptual plan based on outcomes of previous tasks 5. 5 Principal sign off on options and multi-criteria analysis 18

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Thank You Ngiyabonga Dankie Paul Sessions Transport Economist e. Thekwini Municipality * Paul. Sessions@durban. gov. za ( (+27) 31 311 7809 (+27) 72 356 6454 20