TRANSPORT & SAFETY

ECONOMIC LEKGOTLA 2017 -

REPORT Theme:Transport & Safety, the Heartbeat of Radical Economic Transformation for Villages, Townships and Small Dorpies in Bokone Bophirima.

Held from 08 – 10 November 2017

INTRODUCTION AND BACKGROUND

� The Transport and Safety Lekgotla was organised and hosted by the Department of

Community Safety and Transport Management (CSTM) through a series of events spanning

over 3 days, i.e 08-1o November 2017. The Lekgotla was aimed at bringing together role

players within the transport sector to disuss the economic contribution of the sector to the

radical economic transformation of Villages Townships and Small Dorpies (VTSD) IN Bokone

Bophirima.

� The was held under the theme “Transport & Safety, the heartbeat of radical economic transformation for Villages, Townships ad Small Dorpies I Bokone Bophirima’’. The

event was a directive of the Honourable MEC Mokgantsang Motlhabane, responding to the

call made by the Honourable Minister SOR Mahumapelo for he Provincial Departments and

Entities t contribute to the activation and acceleration of the VTSD economies.

� Through the Lekgotla, CSTM had an opportunity to outline its Department programmes and

projects which directly contribute to the socio-economic wellbeing of the province,

particularly disadvantaged areas. The department presented a basket of economic

opportunities for entrepreneurs, investors and cooperates coined “CSTM Economic

Activator for VTSD”

� Participants were reminded of the call made by the Honourable Minister SOR when he said:

“ Our approach is to build an inclusive Village, Township and Small Dorpie economy that

promotes enterprise and industrial development, reduces unemployment in rural area and

utilise existing capacities within rural households to promote entrepreneurship

PUTTING OUR OBJECTIVES ACROSS

� To create an environment which gives opportunities to

small and medium enterprises in Villages, Townships

and Small Dorpies.

� Encourage partnerships and cooperation between

established businesses and emerging businesses,

including Non-Governmental Organisations,

Cooperatives and Broader Community Groups.

� Assist emerging and small businesses with compliance

issues in order to address the challenge of them losing

economic opportunities due to non-compliance.

� Encourage and support local manufacturing of goods

rather than importing of finished products from

outside the province.

OUR PRINCIPAL

Click on the picture to view the video

OUR PARTICIPANTS

The event brought together transport stakeholders from within the province and shared with them the investment opportunities by the Department for the VTSD economies.

OUR SPEAKERS

� The event was hosted and addressed by the Honourable MEC Dr. Mokgantshang Motlhabane.

� The support to the event was also shown by the National Department of Transport represented by the DDG for Transport, Mr. Chris Hlabisa who also addressed the event.

� The Local sphere of government was also represented with several Mayors and Member of the Mayoral Council present.

� The Academic Sector also weighed in through Mr. Ofentse Mokoena, a Transport Economist from the North West University.

� The Private Sector and Partners where represented by CEO of Roucomm Systems, dealing with Airport development and how it will positively impact on the VTSD economies.

� At least two companies involved in manufacturing and/or assembly plants presented.

� Dr. Motara of Global Centre of Excellence presented the International Investor Conference and Airshow concept for Mafikeng International Airport in 2018.

� Plans were outlined by the Head of Department, Ms. Botlhale Mofokeng as to how Entrepreneurs, Corporates, Chambers and Cooperatives can partner with the Department to execute some of the economic opportunities identified.

� The North West Development Corporation also offered support and presented some of the projects being implemented by their entity and suggested ways for partnering with the transport sector through CSTM.

OUR NEW APPROACH

� The Department is introducing a new way

of implementing their programmes and

projects working with transport

stakeholders in the Province to support

economies of Villages, Townships and Small

Dorpies.

� The Department has packaged economic

offerings under the concept of CSTM Economic Activators for VTDS.

� The CSTM Economic Activators for VTDS would take a pragmatic approach that

seeks to utilize what we already have to

achieve more.

� The Department would reconfigure the

implementation method for existing

programmes and projects to support VTSD

Economies.

� Mechanism would be put in place to ensure

that programme and projects commissioned

by the Department benefit broader

economic players.

THE KEY CONSIDERATION

When awarding projects, we will now consider the following questions:

� Is it cost effective?

� Can it be done locally by locals? If not, can the awarded external

party involve locals?

� Is there skills transfer programme in place?

� Is it necessary to have competition between established and start-up

companies?

� Is manufacturing and production of needed goods done in the

province?

� Is it possible to breakdown the value chain to benefit more

companies?

� Would there be off-taker and/or net-worth economic benefits

startup companies?

THE BILLION RAND CHALLENGE

ECONOMIC OPPORTUNITIES

� About R1 billion from the Department’s budget will be opened for economic opportunities to

cooperatives, small operators, emerging entrepreneurs in Villages, Townships and Small Dorpies.

� The amount indicated is an already existing budget for Public Transportation, Gavornment garages

and Uniforms supply. The Department will merely ensure that the budget benefit as many economic

players as possible and impacts on VTSD economies.

� NTI will be requested to set aside R245 million worth of opportunities whilst the Airport

Development partners will have to open up to 35% worth of opportunities on major developments.

� The Department will open opportunities for small operators, scholar operators and women operators

to be part of the commuter contracts in the next financial year.

� Scholar operators would be included in the government garages by becoming clients and credit

holders.

� Partners are offered an opportunity to Build, Operate and Transfer Government Garages as part of

the resuscitation project.

� Small companies and cooperatives manufacturing clothes will be given an opportunity to supply the

department as an off taker.

THE ECONOMIST VIEW

� Advised on better economic planning and focus.

� There is a difference between development and growth.

� Mafikeng International Airport’s development holds good economic prospect for

the province.

� A growth outlook may force us to miss the development leading to “sustainable

growth”.

� Investing in better planning and implementation capacity is the key to locking in

the benefits of development.

� For transport components en-route an internally developed implementation

strategy through PPPs (not outsourcing) is essential.

� Deeper partnerships with education institutions.

� Logistics audits, Provincial Household Travel Surveys, Land Transport Economic

Surveys, Capital infrastructure Evaluation and Smart City Solutions are amongst

the key avenues for action in future.

MAFIKENG AIRPORT DEVELOPMENT PROJECT

AIRPORT DEVELOPMENT

� The Airport Development Project is a partnership effort between

government and private business to turnaround the fortunes of Mafikeng

Airport,

� Roucomm Systems is currently managing the airport through its operating

company, Mahikeng Airport Management Company (MAMco) and is

responsible for both aeronautical and non-aeronautical services at the

airport,

� The idea is to designate the airport as a port of entry to enable Roucomm

Systems and its partners to establish an International Cargo Hub,

� The anchor business at the airport will included operating cargo airline,

operating a fuel farm for major airlines, establishing an Airline

Maintenance and Repairs, Operating an Aviation Academy and Estate

Agency Service.

� The model involves relocating a fully operational cargo business to the

airport in order to immediately get the project going,

� The immediate investment to upgrade the airport will amount to just over

R1 billion in the first 5 years, invested in infrastructure development,

security and technology upgrade as well as Ground Handling and

Emergency Equipment,

� The investment is expected to grow to about R3,5 billion in the next 15

years turning the whole precinct of the airport into an aviation hub with

full free trade zone status and manufacturing industries,

� Opportunities will be opened for local business to at least benefit no less

than 35% business participation whilst people of the province will be

prioritised for jobs and training,

� A fuel farm will be built to increase the current energy capacity at the

airport whilst ensuring environmental protection,

� The project will be used as off-taker for the development of the Mahikeng

area into an Economic Special Zone,

APPOINTMENT SCOPEAPPOINTMENT SCOPEAPPOINTMENT SCOPEAPPOINTMENT SCOPE

OPERATIONAL PROVISION

OPERATIONAL PROVISION

Flight & Aircraft, Parking,

Fuelling, CSS, OHS

Passenger, Baggage,

Cargo, Lounge & Transport

Retail, Warehousing,

Hangars

MANAGEMENT PROVISION

MANAGEMENT PROVISION

Commercial & General Aviation,

Concessions

Marketing, Revenue

Control, Security

Charter Operations, Branding, Training

MAINTENANCE PROVISION

MAINTENANCE PROVISION

Landscaping & Cleaning

Interior a& Exterior Décor

Mechanical, Electrical & Plumbing

IMPROVEMENTSPROVISON

IMPROVEMENTSPROVISON

Redesign, New Infrastructure,

Planning

Appointment of Professionals

and Contractors

Regulate Access & Use by 3rd

Parties

Roucomm Systems - Mahikeng Airport 2015

PARTNERSHIP MODEL

PROVINCIAL GOVERNMENTPROVINCIAL GOVERNMENTPROVINCIAL GOVERNMENTPROVINCIAL GOVERNMENT

- Project Regulator- Policy & Compliance – Economic Pillars- Co-Management in the 1st Phase

INVESTORSINVESTORSINVESTORSINVESTORS

- Local & International Partners- Industry Segmentation

- Anchor Projects - Financiers

INVESTORSINVESTORSINVESTORSINVESTORS

- Local & International Partners- Industry Segmentation

- Anchor Projects - Financiers

EMPLOYMENTEMPLOYMENTEMPLOYMENTEMPLOYMENT

- Employment Targets- NGO’s & Cooperatives- Skills Development

EMPLOYMENTEMPLOYMENTEMPLOYMENTEMPLOYMENT

- Employment Targets- NGO’s & Cooperatives- Skills Development

LOCAL BUSINESSLOCAL BUSINESSLOCAL BUSINESSLOCAL BUSINESS

- Expansion of Opportunities - Enterprise Development

- 35% Localization

LOCAL BUSINESSLOCAL BUSINESSLOCAL BUSINESSLOCAL BUSINESS

- Expansion of Opportunities - Enterprise Development

- 35% Localization

ROUCOMM ROUCOMM ROUCOMM ROUCOMM

- Project Owner & Manager- Financing & Implementation Models

- Investor & Partner Coordinator

ROUCOMM ROUCOMM ROUCOMM ROUCOMM

- Project Owner & Manager- Financing & Implementation Models

- Investor & Partner Coordinator

PROJECT DEVELOPMENT FOCUSPROJECT DEVELOPMENT FOCUSPROJECT DEVELOPMENT FOCUSPROJECT DEVELOPMENT FOCUS

1. Establish and Operate a Fully-fledged Aviation Logistics Hub1. Establish and Operate a Fully-fledged Aviation Logistics Hub

2. Establish and Manage an Aircraft Maintenance and Repair Centre2. Establish and Manage an Aircraft Maintenance and Repair Centre

3. Operation of the Jet A1 Fuel and AvGas Farm3. Operation of the Jet A1 Fuel and AvGas Farm

4. Property Development and Estate Agency Services4. Property Development and Estate Agency Services

5. Construction and Management of a Solar Farm5. Construction and Management of a Solar Farm

Management, Improvement and Operation of the Airport inclusive of both Aeronautical and Non-Aeronautical Services

AIRPORT BUSINESSAIRPORT BUSINESSAIRPORT BUSINESSAIRPORT BUSINESS

• Pilot & Crew Training

• Denel Technical Academy

• Aviation College

• Aeronautical Services

• Non-aeronautical • Duty Free Zone• Business Services

• Aircraft Repairs• Component Assembly

• Training Practical• Avionics

• Cargo Airline• Logistics Hub• Truck Freight• Hangars• Warehousing

CARGO OPERATION

CARGO OPERATION

AVIATION MAINTENANCEORGANISATION

AVIATION MAINTENANCEORGANISATION

AVIATION CAMPUSAVIATION CAMPUS

AIRPORT MANAGEMENT

AIRPORT MANAGEMENT

Roucomm Systems - Mahikeng Airport 2015

THE MAHIKENG AIRPORT SEZ

JOB CREATION ESTIMATES

LOCAL ECONOMY STIMULISATION� The entire airport project is about the resuscitation of the local economy, with local meaning the entire province.

� The provincial government conducted a studies on possible job creation through airport and SEZ which estimated a

creation of 34 000 permanent jobs and 1600 temporary jobs per ten year period.

� The same study estimates the creation of the abovementioned number of jobs based on a total investment of R6, 2 billion over ten o fifteen years. The jobs envisaged will be from the manufacturing sector, followed by community services and transport sectors.

� The report estimated that the total labour remuneration from the new jobs created would amount to R2.02 billion.

� The report further estimates that the majority of new employees (14 876) will be recruited from Mahikeng, 12 900 from the

rest of the province and 8 169 from the rest of RSA.

* Information based on origin IDZ plans

PROPOSED WAY FORWARD� The current project aims for an equal or surpassed targets estimated by the provincial government study if the full scope

is provided.� The investment value currently proposed is much higher in monetary terms but this will only work if the supporting IDZ

projects are incorporated in the project.� It should also be noted that the numbers raised do not include the construction of the solar farm, which will be executed

separately.

JOB CREATION LOCAL ENTERPRISE DEVELOPMENT

� Jobsareguaranteedto the local communityandprovince.

� Skills development and training of the local community will

also be prioritized especially in specialized areas such as

aviation,logisticsandtechnology.

� Local enterprises would be allocated a guaranteed percentage

on supplying and provision of services.

� A deliberate effort would be made to promote joint ventures

with local businesses where services can only be found outside

the province.

DR. MOTARA – GLOBAL CENTRE OF EXCELLENCE

� The Internationalisation of Mafikeng Airport is a key strategic activator for provincial economic growth,

� The Airport should be used to activate other provincial aerodromes in the province to stimulate VTSD

economies,

� There is a need to audit and quantify the infrastructure value of transport related facilities in the province

if investors are to be attracted,

� There is a need for a consensus-based strategy for the development of Mafikeng International Airport

aligned with the National and Provincial Priorities,

� Organise an International Investor Conference for 2018 to secure national and international investors to

brand the Mafikeng International Airport as an international cargo and commercial hub,

� Position related provincial assets strategically for investment,

� Ahead of the investor conference and engagement, collaborate with stakeholders to significantly package

the commercial opportunities and assets of the province focusing on Agriculture, Mining, Manufacturing,

SMMEs, Arts and Culture, Tourism and Human Capital Development,

� Integrate the strategic priorities of the Mafikeng and Pilanesburg Airports as well as the 12 other airports in

the North West Province,

� Support government priorities to collaborate with stakeholders in prioritising provincial job creation and

seamless supply chain systems for stimulating economic growth at Villages, Small Towns and Dorpies and

target Tourism Growth.

THANK YOU FOR YOUR SUPPORTTHANK YOU FOR YOUR SUPPORTTHANK YOU FOR YOUR SUPPORTTHANK YOU FOR YOUR SUPPORT

For More Information please contact us onFor More Information please contact us onFor More Information please contact us onFor More Information please contact us on

Olebogeng Baikgaki Tshepiso MosupaEmail: info@mahikengairport.co.za or mamco.airport@gmail.com

www.mahikengairport.co.za

Tel: 018 – 3851010 – Cell: 0736071777

Fax: 018 385 1007