The 2016/17 edition of Limpopo Business is the eighth issue of this highly successful publication that, since its launch in 2007, has established itself as the premier business and investment guide to the Limpopo province.
Limpopo is unique in terms of its abundant natural and human resources, and is also one of the key drivers behind the South African economy.
This edition of Limpopo Business is officially endorsed by the Office of the Premier of Limpopo.
OVERVIEW Transport and
OVERVIEW Transport and logistics Transport and logistics are vital to Limpopo’s export trade Logistics is a vital feature of the Limpopo economy for two reasons: the province has huge volumes of raw produce to be transported to markets elsewhere, and the province is also strategically positioned on the great road to the north. All of South Africa’s major logistics companies have facilities in Polokwane, and some (like RTT, which also has offices in Makhado) have warehouses and forwarding capabilities in other parts of the province. Limpopo’s biggest exports (minerals, fruit and vegetables) require dramatically different levels of handling. Minerals are poured in great volumes into the freight trucks of Transnet Freight Rail (TFR) and taken onward to the Richards Bay Coal Terminal, whereas some of the province’s fruits (for instance avocadoes) have to be handled with extreme care. They also have to be delivered to ports as quickly as possible as they are delicate and the deadlines for getting fruit to market in Europe can be extremely challenging. Companies such as Freezerlines, Fast SECTOR INSIGHT Transnet Freight Rail wants to get freight off the roads and onto rail. • Roads Agency Limpopo has a budget of R737- million for 2016/17. • SA Express flies regularly to Eastgate airport near the Kruger Park. ‘n Fresh and Cold Chain have developed specialist techniques for getting these fruits to market and LIMPOPO BUSINESS 2016/17 54
OVERVIEW to port undamaged. Grindrod has a Perishable Cargo division which specialises in transporting cargo by air. The large national logistics company Value Group has only four major regional depots outside of Gauteng: in Cape Town, Durban, Nelspruit and Polokwane. This illustrates the importance of the Limpopo Province and its capital city in South Africa’s logistics chain. Logistics giant Imperial Logistics Southern Africa has 70 companies in its group structure, including Kobus Minaar Transport, a concern that began in Tzaneen transporting fruit and vegetables. Other active companies in Limpopo include Dawn Wing Logistics, Kargo, F&R Logistics and Aramex SA. Outside of Polokwane, the towns of Tzaneen, Lephalale, Burgersfort and Musina (a border post with Zimbabwe) are all important in the field of logistics. There has been interest for some years in increasing rail volumes out of the coal-rich Waterberg area (TFR is conducting a feasibility study into building a major new rail link) but depressed commodity prices worldwide will make it more difficult to get this project up and running in the near future. An extension of 464km would cost about R37-billion, but it is possible that TFR will look for private partners to invest in the project. If more coal mines are developed then capacity could be ramped up in stages from the current four-million tons-per-year to around 80-million tons, which would all be delivered to Richards Bay via the line through Mpumalanga and KwaZulu-Natal. Eskom’s huge new power station in western Limpopo (Medupi) will need massive supplies of coal but is experiencing long delays in construction. The N1 highway (“The Road to the North”) is an incredibly busy and sometimes overcrowded road, and growing mining operations are putting pressure on secondary routes throughout the province, which 55 LIMPOPO BUSINESS 2016/17
