The Minister of Trade and Industry, Rob Davies, said the launch of the multi-million-rand Musina Intermodal Terminal (MIT) was a stepping stone towards the government's realization and implementation of the Musina-Makhado Special Economic Zone.
He was addressing guests from South Africa, Zimbabwe, Zambia and Mozambique during the official opening of the MIT at Musina on Monday.
"The SEZ will significantly increase industrial production in the region. This will include steel and related inputs for producing steel and stainless steel, as well as increasing mining development and production. The SEZ will thus increase trade between South Africa and its neighbours. Regional integration will also be deepened," added Davies.
The logistical hub, which was conceived through the partnership between Lionshare Holdings, Messina Associated Carriers, the Citrus Growers Association, Barloworld, Transnet and the Barberry Group, aims to reduce the transportation of cargo by roads, while at the same time promoting the usage of rail.
According to Davies, the Musina Intermodal Terminal speaks to several policies of the government and the promotion of regional economic integration. The terminal is aimed at the container cargo market and the transportation of mineral ores such as coal, iron ore, chrome, copper and sulphur.
Davies said government welcomed the launch and congratulated the partners for coming up with the long-awaited initiative instead of waiting for the government to take the lead. "Today we are celebrating the private sector front-runners in this project. As advocates for a safe environment, we really welcome this initiative with open hearts, because the intermodal solution is cost competitive and produces lower carbon emissions than road transport. We were reliably informed that this initiative will provide further benefits for mining ventures located in this area that need to store mining equipment until it is required by the mining operation. This is going to play a meaningful role in the development of our regional economy."
He said the logistics hub was in line with the government's strategy of moving away from road- to rail-cargo delivery. "In addition, this initiative will result in reduced road damage and accidents, expedited border crossing and enhanced driver management as a result of the shorter road distances travelled."
The MEC for Economic Development, Environment and Tourism, Mr Seaparo Sekoati, said during the event that the provincial government was excited about the MIT, as it would create an enabling environment for the transportation business. "This is bearing testimony that we are moving in the right direction in the realization of the Limpopo Development Plan. It is good to see that the private sector is helping the government in economic development initiatives."
A member of the executive council of Musina Municipality, Cllr Jeremia Khunwana, added that the town aspired to be a city soon, and it was important to have more efficient transport solutions that would lower logistical costs and contribute to economic growth, while simultaneously being a catalytic input to human development. "Intermodal transportation is actually one of the top five trends impacting the transportation industry today, and we are happy to be counted among the first to have one here in Limpopo."
The chairman of the Musina Intermodal Terminal, Dr Morley Nkosi, expressed gratitude for the support from partners, local, provincial and national government towards the realization of the MIT. "It would have been impossible for us as private sector to realize this dream without the support from our partners and the government. Indeed, the initiative will bring new life into the regional logistics industry."