The 2010 World Cup has generated many opportunities for US companies looking to enter the South African market. We’re happy to report some successful infrastructure development projects and highlight some current opportunities. South Africa has extensive plans for mass transport, water projects, prisons and hospital and prison upgrades that offer plenty of opportunities for US companies. South Africa is not alone in taking on ambitious infrastructure projects. Other southern African countries present opportunities as a successful destination for investment. New efforts across the continent are being made to develop, improve, and further secure water resources and transportation, including ports and airports.
Construction Sector Remains Upbeat
Confidence in the South African construction sector remained high in the third quarter of 2008 despite an uncertain international environment and a slight dip due to weaker domestic demand, according to the confidence index compiled by the South African Bureau of Economic Research (BER) in September 2008.
The future prospects for the construction sector, currently the best performing economic sector, are upbeat, with experts interpreting data to indicate fairly stable business conditions.
The current and future workload of construction companies is driven by large projects such as the high-speed commuter Gautrain project, power stations, roads, stadiums and related infrastructure, and private sector orders.
Gautrain Project more than 49 % complete
Phase one of the R 25 billion (USD 3.1 billion) Gautrain project is 49% complete, with work on phase two at 39%, Gautrain project leader and Gautrain Management Agency CEO Jack van der Merwe reported at the end of September 2008.
The Midrand–Sandton–OR Tambo International Airport link of the Gautrain – or phase one – is scheduled for completion in mid-2010, with the Sandton–Johannesburg, and Midrand–Tshwane links – or phase two – to be operational by 2011. The project team is currently working on 53 construction sites scattered along the 50-mile route.
Update on the recent political changes
Umbrella organization Business Unity South Africa (Busa) has congratulated newly appointed South African President Kgalema Motlanthe, and said it believed his appointment would cement investor confidence in South Africa’s democracy, at a time when the world was faced with major economic challenges that required unwavering government leadership.
Busa felt that Motlanthe was able to lead the country through what it called a transitional phase.
Busa also welcomed the way Motlanthe swiftly appointed his Cabinet. “By retaining the old and tested Ministers combined with new ones, this will once more confirm to investors and the world that the new leadership is committed to building on the solid successes of the past fourteen years, while seeking to improve in areas of weaknesses by bringing new leaders”.
New Opportunities
Cape Town Transportation
The first phase of a world-class integrated rapid transit (IRT) system for Cape Town will be ready by March 2010, according to the City’s transport authorities. An IRT system offers a way of ensuring that all modes of public transport work together and have priority over private transport. A major component of this is a bus rapid transit (BRT) system to provide a regular, fast, frequent and reliable public transport service.
The system will consist of two parts – trunk routes and feeder routes. The trunk routes will have separate, dedicated bus ways for special 18-metre articulated vehicles. Enclosed, weatherproof bus stations will be placed in the centre of the road to ensure that buses can move quickly past other traffic. The feeder services, consisting of smaller 8m and 12m vehicles, will carry passengers to the trunk routes. The service will run for longer hours than the City’s current public transport services.
The intention is to establish an IRT network across the City in the next 10 to 12 years, to be completed in four phases.
Ports
Major shipping lanes pass along the South African coastline in the South Atlantic and Indian oceans. Approximately 96% of the country's exports are conveyed by sea, and the seven commercial ports are the conduits for trade between South Africa and its Southern African partners as well as hubs for traffic to and from Europe, Asia, the Americas and the east and west coasts of Africa.
The state-owned Transnet National Ports Authority manages the country's ports. These are: Richards Bay and Durban in KwaZulu-Natal, East London and Port Elizabeth in the Eastern Cape, and Mossel Bay, Cape Town and Saldanha in the Western Cape. An eighth commercial port, the Port of Ngqura, is being developed off the coast from Port Elizabeth in the Eastern Cape, with the first commercial ships expected to dock in the port by 2009. Nqura is set to be the deepest container terminal in Africa. It is a crucial part of Coega, one of South Africa's strategic industrial development zones.
Grinaker-LTA is continuing its ongoing work at the Coega Industrial Development Zone with the award of a $10 million contract for a new hauler yard and accompanying buildings at the Port of Ngqura. This contract forms part of the infrastructure development being undertaken by Transnet at the port.
Newsletter Sources: AllAfrica
Engineering News
Business Day
U.S. Commercial Service – South Africa
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