South African state owned Transnet will spend ZAR 300 billion in a capital expansion program to move the transportation of minerals such as coal from roads to rail.

This was announced by President Jacob Zuma during his State of the Nation address in parliament.

Mr Zuma said that in terms of the new plan, the transport and logistics group will be making massive improvements to the Durban-Gauteng rail corridor and improve the manganese export channel through the port of Ngqura in Port Elizabeth. There would also be huge rail infrastructure developments in Limpopo and Mpumalanga, where coal is mined.

The president said that ZAR 200 billion would be specifically invested in rail infrastructure, while the remaining ZAR 100 billion would be pumped into projects in the ports with the aim of expanding the iron of re export c hannel from 60million tons per year to 82 million tonnes.

Mr Zuma said that "The Market Demand Strategy will result in the creation of more jobs in the South African economy, as well as increased localisation of black economic empowerment.”

The president added that "It will also position South Africa as a regional trans-shipment hub for sub-Saharan Africa and deliver on Nepad's [the New Partnership for Africa's Development] regional integration agenda.”

Mr Zuma said the government was also exploring measures to drop port charges by ZAR 1 billion in a bid to reduce the high cost of doing business.

He told MPs, premiers, MECs and other guests in parliament that the government was considering reducing costs following complaints about high port charges by captains of the automotive industry in Port Elizabeth and Uitenhage during his visit to that region last year.

(Sourced from www.timeslive.co.za)