Programme Director;

Mayor of King Cetshwayo District Municipality Cllr Nonhle Mkhulisi

Bidvest Management

Captains of Industry

CEO of entities and management

Representatives of municipalities

Contractors

Captains of Industry

Honoured Guests;

Members of the media

Good Morning

First and foremost, I wish to apologize on behalf of the Premier Sihle Zikalala who could not make it due to other commitments. He was looking forward to this important event.

Ladies and Gentlemen, in China they often say “the beginning is the most difficult part.”

I therefore want to congratulate Bidvest Shareholders, management and all categories of staff, including contractors for their excellent dedication towards the completion of this important project.

The R1 billion invested towards the Mounded LPG Facility will change the face of Richards Bay and this province forever.

I certainly know that in the beginning it was extremely difficult but through your determination you have managed to pull this off.

I am here to personally salute all role-players who have been involved in this important national project.

Apart from strengthening our status as South Africa’s transport and logistics hub, the importance of this Bidvest Tank Terminals lies in the fact that KwaZulu-Natal Provincial Government has a vision of positioning Richards Bay Industrial Zone as an infrastructure for oil and gas

There is a no shadow of a doubt that this facility will help in ensuring that we achieve our vision.

We are grateful that our Premier Sihle Zikalala is leading all efforts aimed at devising mechanisms to accelerate electrification and the provision of alternative sources of energy to assist communities.

We want to ensure that energy becomes a tool for the eradication of poverty, inequality and unemployment.  In addition, we want the energy sector to play a pivotal role in the provincial energy economy. 

The importance of energy supply sector lies both in improving the quality of life for the previously disadvantaged majority as well as supporting large-scale industrial development.

As you all know, the lack of access to efficient modern energy has a significant impact on economic development. It is for these reasons that we welcome this facility.

Ladies and Gentlemen, the Oil and Gas industry presents many opportunities for partnerships in this province. Statistics show that the Oil and Gas industry is employing an estimated 7 500 people and has an estimated annual turnover of over R196 billion, with the refining segment of the industry contribution almost 99% to the total industry’s turnover.

Moreover, the industry apparently accounts for approximately more than 90 000 indirect jobs in the distribution and marketing segment of the industry value chain.

Research indicates that LPG has a number of benefits in comparison to other energy sources like paraffin or wood.  It is considered by international organisations as more environment friendly and safer; and this facility brings certainty and reliability on the supply of a more environment-friendly energy source alternative.

This gas facility has been expanded because of the increasing utilisation of LPG and rising demand both in our country and a number of countries in the SADC region.

It brings with it the hope of increased competition and reduction in costs of the gas for consumers.

As government, we have a vested interest in seeing more black players participating in the entire value chain of LPG industry, especially in the development of SMME suppliers in township and rural areas. 

We also wish to see more of our people participating in the logistics industry to distribute the gas in our country and SADC.

We have no doubt that partners like Bidvest and Petredec will work with the provincial government and our entities to bring more previously disadvantaged groups to participate and grow new markets.

Programme Director, we want the energy infrastructure programmes to focus extensively in rural areas and labour intensive approach to be used for massive job creation purposes.

We have set an ambitious target of increasing total employment to 4.5 million in 2035.  This means that an annual growth rate of 5.43% is required in order to achieve the job creation targets.

We are using both investments in energy infrastructure and environmental sustainability as a driving force towards our targets. Energy costs and the sustainable generation thereof has in recent times become more important than ever before.

Programme Director, at this stage, allow me to focus on the role of women in the energy sector. As the department of economic development we want to women being given opportunities to be involved in many key priority sectors – more especially as entrepreneurs.

We potentially have access to the abundant resources of the ocean, including fisheries, offshore oil and gas and maritime tourism. 

Our ports of Durban and Richards Bay handle over 60% of the country’s seaborne cargo. In spite of this, our maritime industry is characterised by significantly low levels of participation of women.

We believe that unexplored as it is, the Ocean’s Economy in all its variations, presents Richards Bay and this province with endless opportunities, especially for women.

We have no doubt that when oil rigs start visiting our coastline on a regular basis, this industry will grow exponentially. When that growth happens, it should be women who must be at the driving seat as the Mothers of the Nation.

Programme Director, as I draw towards conclusion, we celebrate the fact that this facility it involves South Africa’s partner in BRICS, China. It’s a demonstration of how when the human family works together can attain milestones, conquer raging oceans and dissolve distances to deliver development where it is needed.

Critically, this storage facility also tells the story of business confidence in the KZN economy and Richards Bay Port in particular.

You will recall that few weeks ago I was here at our own Richards Bay IDZ. There was a groundswell of optimism when I joined Transnet leadership during the unavailing of two helicopters. I have to mention this launch repeatedly in order to assure port users that something is being done to deal with their concerns that revolves around congestion in our terminals.

Our very own Premier has had many several meetings with the President Cyril Ramaphosa to discuss congestion at our Durban Port. During the launch of the District Service Delivery Model in Durban, the President met with Captains of Industry. This matter that was discussed extensively.

President undertook to follow up on the proposals that were advanced. These includes a suggestion that the Head Office of Transnet Port Terminals be moved to Durban. We, as government we are in support of such a proposal and we believe that it will be a long lasting solution.

Honoured Guests, I am emphasizing these issues because an efficient port is very important asset for any country as it acts as a conduit for global and intra-regional trade. As you all know, over 90% of trade in Africa occurs by sea.

Programme Director, let me not spoil this great event with a long speech.

I want to once again pause and pay tribute to all stakeholders involved in this important national project. This is a good South African story.

While the economy has faced headwinds recently, our government will continue to forge trust, build consensus and lasting partnerships. 

Let us work together to build a stronger South Africa economically and socially for future generations.

I thank you