SA to set up transport unit to boost infrastructure investment
26 July 2011
South Africa (SA) is to establish a body to organise investments into the country's transport infrastructure.
Lwazi Mboyi, head of special projects at the Department of Transport, said the group will be set up by the end of August 2011, according to Business Day.
He stated: "We are drafting a memorandum of understanding with DBSA (Development Bank of Southern Africa) on the framework that will take care of all the things we want."
The department hopes that the new unit will help drive up investment into SA's transport services by boosting confidence in the sector, as well as providing an incentive through profitable returns.
One project in the pipeline if capital is put into the division is to spend between R80 billion (£7.27 billion) and R100 billion on building a high-speed rail link to join Johannesburg with Durban.
This announcement comes after the Federation of Unions of SA urged the government last month to upgrade the nation's transport infrastructure "speedily", the Sunday Tribune reported.