DBSA’s function within this sector is to pursue infrastructure investment for projects tailored for the development of bridges, roads, bus stations, railways, terminals, airports, seaports, border ports and more.
Transportation infrastructure is one of the key contributors to a country’s socio-economic development and growth. It also plays a significant role in positioning a country in a competitive global market. However, like many other countries, South Africa is challenged with keeping the pace for the increasing demand for infrastructure in this sector.
This is where investment for transportation infrastructure is crucial in the efforts to address the demand and anticipated 3.8 percent (an average of $3.3 trillion a year) of global GDP required for the development of economic infrastructure by 2030. DBSA’s function within this sector is to pursue infrastructure investment for projects tailored for the development of bridges, roads, bus stations, railways, terminals, airports, seaports, border ports and more.
Transport Infrastructure Solutions
The DBSA employs a proactive, inclusive and sustainable approach, which enables us to create opportunities to help us achieve our mandate in this sector. This involves the implementation of the following products and instruments to maximise the impact of investments in the sector:
- project finance
- balance sheet loans
- off-balance sheet loans
- asset finance
- trade finance
We employ these products because we recognise the importance of transport infrastructure for SA’s economic and social prosperity, as highlighted in the National Development Plan 2030 (NDP), SIPs initiatives, as well as the South African Coal Roadmap (SACRM). We consistently centre our investment support around regional integration. Doing this is critical to the success of our objective and to the government’s strategy towards strengthening its capability to mitigate the risks of infrastructure shortage. By doing so, we not only support the local economy and accessibility to the development impact, but also the economy, in terms of the broad cross-border trades.
Transportation includes infrastructure related to the process of transportation of goods and people in the following sub-sectors or areas. The below is further categorised into core, sub-core and operations-related infrastructure. Core infrastructure typically refers to the fixed infrastructure such as airport buildings, ports, roads, railway lines and bus or train stations. Sub-core infrastructure includes vehicles such as aircraft, vessels, buses, and locomotives. On the other hand, operations-related infrastructure includes operating IT systems, data centres, etc.
Airports, aircraft and related infrastructure catering for air transport such as airside and landside facilities and air traffic control equipment.
Railway lines, rolling stock and related infrastructure catering for rail transport such as stations, marshalling yards and signalling equipment.
Roads and related infrastructure include drainage systems, tunnels, bridges, parking areas and purchasing land for servitudes and motorised vehicles to cater for land surface transport.
Infrastructure (not included elsewhere) related to the means of transferring goods and people from one mode of transport to another, such as bus/taxi rank or intermodal terminals, etc.
Ports and Pipelines
Ports and pipelines as well as other related infrastructure and facilities, which cater for maritime transport such as harbours, docks, terminals, waterways, oil and gas pipelines, seagoing vessels, buildings and store yards.
The Bank is focused on the value chains of priority sectors where transport and logistics are expected to play a major role, including:
- public transport systems
- minerals logistic systems
- pipeline gas/fuel logistics
- general freight logistics systems
The transport sector choices are driven by legislation and policy requirements, in particular the NDP, the National Transport Master Plan (NATMAP); National Land Transport Act (NLTA); as well as the anticipated Integrated Energy Plan (IEP).
Stakeholders and Beneficiaries
These transport infrastructure investments are aimed at creating a development impact at a regional, national and international (countries under the SADC- Southern African Development Community) level. Thus far, stakeholders and beneficiaries include the following;
- transport State Owned Companies
- project developers
- private sector leaders
- mass Transit Systems Private Sector Participation model (e.g. Municipal Bus Rapid Transit system)
- private-public partnerships (SANRAL’s roads programmes (tolls))
- equipment suppliers (locomotive manufacturers)
- municipalities (Bus Rapid Truck programme, municipal roads)
- Broad Based Black Economic Empowerment (“BBBEE”) empowerment funding
- importers and exporters of transport infrastructure equipment