CONNECTING THE SADC REGION THROUGH REGIONAL ECONOMIC INTEGRATION – OPENING OF THE MUSINA INTERMODAL TERMINAL
Musina: South Africa’s Trade and Industry Minister, Dr Rob Davies and Musina Intermodal Terminal Chairman, Dr Morley Nkosi officially opened the Musina Intermodal Terminal on Monday, 26 June 2017, signalling a new era of promoting regional economic integration trade through the lowering of transport costs by providing efficient intermodal logistics solutions.
A significant catalyst for the development of MIT is the designation of the Musina-Makhado Special Economic Zone (SEZ) by the dti. The MIT is closely aligned with the SEZ’s strategic objectives of boosting both South Africa’s, as well as the region’s, industrialisation and manufacturing capacity through extraction and beneficiation of minerals, accelerating economic growth and development in the region, driving increased foreign and domestic direct investment, increased value-added exports, creation of jobs, and building of industrial clusters and regional industrial hubs.
The MIT, located on the N1 National Road in Musina, and some 15 kilometers from Beitbridge Border, was established during early 2017 primarily to migrate cargo flows from road to rail, where commercially sustainable.
The MIT can currently handle up to 3 million tons per annum of cargo, both bulk and containerised, which capacity can be increased with relatively low capital investment to over 8 million tons per annum. The MIT complex comprises 4 designated areas; the Musina Station property, a concrete pad, a covered warehouse and a hardstand facility; with all 4 areas interlinked with rail lines, connecting to the Transnet Freight Rail (TFR) main line.
The Promoters of the MIT are two established Musina based businesses, Lionshare Holdings, a property developer, and Musina Associated Carriers, a transport and logistics company, as well as the major shareholder, the Barberry Group, who are an established materials handling and rail logistics management company, managing and loading ~6 million tons per annum of bulk commodities. Barberry supports the MIT management in its close working relationship with TFR, to extract efficiencies from the rail system, and thereby lower the costs of logistics.
Both Lionshare and Barberry are 100% Black Owned organisations with significant equity held by Black Women.
Transnet has been a key partner in the development of the Musina Intermodal Terminal (MIT) through its Market Demand Strategy (MDS), where Transnet Freight Rail actively works with terminal operators and partners, this instance MIT, to design appropriate rail and intermodal solutions to migrate road volumes to rail. In addition, TFR made property available, under a Lease Agreement, to be incorporated in the MIT complex.
All MIT stakeholders are committed to removing cargo from the road network and transferring it to rail transport where commercially sustainable; thereby preserving the road infrastructure and improving the level of safety for road users.
MIT estimates current cross border road traffic volumes of all cargo types is approximately 11 million tons per annum, and MIT is seeking to initially migrate some 10% of this volume onto rail.
In striving to deliver both innovative and comprehensive value adding solutions to Clients, MIT has successfully managed to have the facility classified as a Special Storage Warehouse, i.e. a Bonded Store.
MIT has successfully secured funding for the planned growth of the facility from the Industrial Development Corporation of SA (IDC) in excess of R180m.
MIT welcomes the support provided by the IDC, in terms of both the innovative funding structure concluded with MIT, as well as the strategic guidance it provides in terms of developing inter-regional trade.
The IDC has made significant investments in mining ventures located along the North South Corridor (the logistics corridor stretching from the DRC to Durban) and in promoting the Musina Makhado SEZ; as an imperative, these investments and developments require effective and efficient integrated supply chain solutions, centred around a world-class intermodal facility.
The MIT is focused on ensuring that the most appropriate transport mode is utilised for the specific cargo types from origin to destination, and thus provides the capability and capacity to efficiently tranship cargo from one mode to another. In the short to medium term MIT is targeting to handle approximately 2.1 million tons of cargo per annum onto rail, including approximately 1,5 million tons per annum of locally produced coal.
The migration of cargo from road to rail will result in reduced carbon emissions, logistics costs and road congestion, as approximately 62,000 vehicle trips per annum are removed from the regions roads.
The MIT initiative will ultimately result in the creation of 75 new permanent jobs and it is envisaged that other job opportunities will be created when volume throughput increases.
Furthermore, the migration of cargo to rail will result in significantly reduced carbon emissions, and related socio-economic and environmental benefits.
For further information please contact:
Dr. Morley Nkosi
Executive Chairman : Musina Intermodal Terminal
Tel: +27 83 327 1365