SECTOR SPECIFIC INITIATIVES The stainless steel, wire, auto and mining sectors are priority sectors for sector specific initiatives. The Steel Oversight Council should consider how to establish these sectoral initiatives and whether there are other sectors which warrant such initiatives. SUPPLY-SIDE MEASURES
While the focus of the industry in recent years has been on trade measures, this Master Plan proposes that greater attention be focused on more effective implementation of the variety of supply-side measures necessary to improve industrial performance and enable the sector to become more sustainable and competitive. Some of the measures were identified in 2016 and industry responses to the Master Plan draft emphasized the need to confirm these and complete the implementation of these measures. 1. INPUT COST REDUCTION IN THE VALUE CHAIN AND AVAILABILITY 1.1 Logistics and the cost of rail and ports: Transnet’s general freight tariffs and the availability of trains and the quality of train services are an identified challenge. The lack of geographical coverage of the rail network is also a concern. The new leadership of Transnet and the relevant Ministry supports a more efficient service. Investment in rail networks and capacity will benefit the economy and the industry directly and indirectly, by facilitating logistics and by generating activity for the industry. The cost and efficiency of port facilities are also problematic for the industry. Many companies have stated that it costs more for them to take products from Gauteng to the Durban port than to bring goods ex-works from Asian exporters or elsewhere to Durban. This must be addressed in terms of the government’s road to rail strategy. Investigations in this regard will produce important information to assist the parties to reach a solution and it would be welcome if the investigation could be accelerated.
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The South African Steel and Metal Fabrication Master Plan 1.0
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