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Please help me with the below for transport economics : South Africa Aims to Fire Up Economic Growth With Port, Rail Revival South Africa s
Please help me with the below for transport economics :
South Africa Aims to Fire Up Economic Growth With Port, Rail Revival
South Africas government and the business community set a target of boosting the economic growth rate by as much as six percentage points by fixing the countrys collapsing ports and freightrail network.
They predict that cracking down on crime and corruption may save as much as R billion
$ billion a year, noted by Bloomberg and confirmed by business representatives. South
Africas National Treasury has forecast that the gross domestic product will grow next year. South Africas biggest companies and the government have set up joint panels as part of a drive by its biggest companies to work with the state to resolve a host of issues holding back the economy. These range from power cuts and the poor performance of the rail network, to increasing crime and an inefficient workvisa application process.
Coal shipments on South Africas freightrail network have plunged to year lows and ironore railings are at their lowest in a decade, prompting companies including Glencore Plc to consider cutting jobs. Port snarl ups are resulting in delays to the loading and offloading of ships and some fashion retailers have resorted to flying in apparel.
The problems are seeing mining companies reconfiguring in line with current reality and delaying capital investment, putting jobs at risk, the National Logistics Crisis Committee said in the presentation. These include overall freight moved by rail increasing to million tons in the year through March from million tons in the year to March Similarly ambitious targets have been set for the processing of containers at ports and the shipping of cars and bulk minerals.
The roadmap is a government document outlining plans to boost private involvement in the countrys largely staterun ports and rail network. BSA the business organisation helping coordinate the work with the government, didnt immediately respond to a request for comment.
So far there is little sign of improvement. Kumba Iron Ore Ltd the countrys biggest producer of steel raw material, is running out of space to store ore it has mined and cant move to the port. Exxaro Resources Ltd a coal exporter, said last month Transnets railings to the main export terminal are on course to fall for a sixth consecutive year.
QUESTION
In light of the above article, explain the importance of a good transport system to the economy and discuss the significance of government and business community coming together to solve issues in the port and rail sector.
In relation to the above article, discuss the i ssues faced when demand for rail and ocean transport does not meet supply of transport.
The article mentions that mining companies are negatively affected by inefficient rail transport. Discuss the significan of rail transport to SAs economy
Discuss the role of transport in facilitating global trade
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