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SANRAL urges caution amid disruptive rains in Eastern Cape

TRAFFIC ADVISORY

SANRAL urges caution amid disruptive rains in Eastern Cape

Gqeberha, 21 October 2024 – The South African National Roads Agency SOC Limited (SANRAL) is advising motorists in the Eastern Cape to exercise heightened caution as severe weather conditions are expected to impact several municipalities.

The South African Weather Service (SAWS) has issued an Orange Level 6 warning for disruptive rain in Amahlathi, Buffalo City, Great Kei, Ingquza Hill, King Sabata Dalindyebo, Mbashe, Mbizana, Mnquma, Nyandeni and Port St Johns until Monday 21 October. A Yellow Level 4 warning is in effect for the Nelson Mandela Bay, Kouga, Sundays River Valley, Makana, Ndlambe and Ngqushwa municipalities, with rain expected to persist until Tuesday 22 October.

Mbulelo Peterson, SANRAL’s Regional Manager for the Southern Region, emphasised the need for road users to adjust their driving in response to the adverse weather.

“SANRAL urges all motorists to reduce their speed, remain vigilant and take extra care on the roads during this period of heavy rainfall. Our routine road maintenance teams are on standby to monitor any incidences that might affect our network. It is crucial for road users to stay informed about weather updates and road conditions in the affected areas,” said Peterson.

Motorists are encouraged to monitor weather forecasts and plan their trips accordingly to avoid unnecessary risk.

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Road closures on Gladys Manzi to New England Road upgrades

TRAFFIC ADVISORY
Road closures on Gladys Manzi to New England Road upgrades

Pietermaritzburg, 21 October 2024 – The South African National Roads Agency SOC Limited (SANRAL) has announced temporary road closures for the installation of bridge beams as part of construction of the New Market Road overpass bridge.

Details are:

  • N3 Northbound closure: From 21:00 on Saturday, 26 October 2024 to 05:00 on Sunday, 27 October 2024
  • N3 Southbound closure: From 21:00 on Sunday, 27 October 2024 to 05:00 on Monday, 28 October 2024

The available alternative routes are:

  • N3 Northbound: Alternative via Market Road off-ramp then temporary on-ramp back onto N3 i.e. a minor deviation.
  • N3 Southbound: Alternative via Market Road off-ramp then R103 to Ashburton Interchange.

“The traffic accommodation team, with the assistance of the Road Traffic Inspectorate (RTI), have carefully planned the closures and will manage and monitor them for their full duration,” said Jason Lowe, SANRAL’s Eastern Region Project Manager.

Increased traffic volumes can be expected at the Market Road interchange as well as the roads leading to them.

“Trucks and heavy vehicles are advised to try and delay trips over this period and/or find suitable staging areas to avoid major congestion. Public transport operators are asked to ensure their drivers are aware of route closures and alternative routes affecting their commuter routings,” said Lowe.

“Light vehicle traffic, as well as emergency services and traffic management, are advised to make use of alternative routes. SANRAL apologises for any inconvenience caused and appreciates the public’s patience during the ongoing major road enhancements.”

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Taking Road Safety to the communities at Cliffdale and Peacevale, Durban

MEDIA RELEASE

Taking Road Safety to the communities at Cliffdale and Peacevale, Durban

Community of Cliffdale, Peacevale and Drummond listening attentively to presentations during the road safety campaign near the Key Ridge project upgrades

Pietermaritzburg, 20 October 2024 – The South African National Roads Agency SOC Limited (SANRAL) conducted a safety awareness campaign at the African Congregation Church in Cliffdale to raise road safety awareness among the Cliffdale and Peacevale communities following the increased number of road accidents around the Key Ridge project upgrades.

Key Ridge continues to experience pedestrian fatalities, injuries and car accidents. This is a great cause for concern as there is still a long way to go until the upgrades on this strategic road, that is part of the N2-N3 project, is concluded.

Speaking at a road safety campaign event for local communities in Cliffdale and Peacevale, Nomcebo Cebekhulu, SANRAL’s Marketing Communications specialist in the Eastern Region, said: “When SANRAL puts up these contracts, it does so to improve the roads and in turn improve the lives of the people around, not to hinder them. We appeal to all community members to respect the rules of the road for their own safety and the safety of others. Any loss of life is regrettable. Take all necessary precautions when approaching the massive construction in the vicinity of Key Ridge.”

The road safety event informed communities about the dangers of crossing prohibited areas and the importance of adhering to the prescribed speed limits, especially during construction, and encouraged them to observe safety signs erected around the construction sites.

Ntokozo Khoza, of the eThekwini Transport Authority, added to SANRAL’s plea and encouraged the community to stay safe. He said, “The important thing to note is that pedestrians are not allowed on the national road. Our local stats show that every day at least two people are killed on the road in eThekwini, with pedestrians making up most of that number. We wish to reduce our accidents by half by 2030, and this will take a collaborative effort between us all.”

Makgera Raphalu, a safety officer of construction company WBHO, reiterated the plea made to pedestrians by sharing stats of incidents that have occurred since the commencement of the project. “We’ve had 140 accidents in Key Ridge so far and nine fatalities since the start of the project, one and half years ago. Crossing the freeway is not allowed. There are designated areas pedestrians can use when crossing the road.”

Lindelihle Zikalala, SANRAL’s Road Incident Management System coordinator, asked the community to adhere to all the safety messages and to be careful when accidents occur near construction sites.

“We must have an understanding of what is expected of us regarding safety and that we do as advised. People have a habit of rushing to accident scenes without knowing if any of the vehicles involved carries harmful materials,” he said.

Speaking on behalf of the community, Ward 103 Councillor Linda Mchunu welcomed the warnings and encouraged community members to try harder to keep themselves and others safe. “We welcome the opportunities brought by SANRAL and the safety initiative to help us see the dangers on the road. For me, this is service delivery. I ask for the people present today to pass it on to others at home.”

Closing off the session, Durban Metro Police’s Captain Dube said, “In the time we have spent here, there is a lot that we could have done out there, but I’m here to talk to you, the community, because you’re still alive. SANRAL is doing this campaign because they want you to be safe. Stop disobeying the rules of the road. Speed kills. Road safety is a collective responsibility, and we all must play our roles, pedestrians and motorists. Make sure your vehicle is roadworthy.”

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SANRAL embarks on a Contractor Development Programme in eThekwini

MEDIA ALERT
SANRAL embarks on a Contractor Development Programme in eThekwini

20 October 2024 – The South African National Roads Agency SOC Limited (SANRAL) will beundertaking a national roadshow on its Contractor Development Programme (CDP) from 21

October to 7 November 2024.SANRAL is implementing the Contractor Development Programme with the intention to increase the capacity, equity ownership, sustainability, quality of work produced and improve the performance of grade 5-9 CE contractors registered with the Construction Industry Development Board (CIDB).

Through the Contractor Development Programme, SANRAL will create a unique platform for CIDB grades 5 to 7 to maximise participation on its projects. SANRAL will provide skills development, training, mentorship and financial support to address the challenge of ‘the missing middle’ CIDB grades.

Members of the media wishing to cover the event can do so as per the details below:

Date: Monday, 21 October 2024

Time: 10:00 am

Venue: The Coastlands Durban West

Satellite venue:

Richards Bay: uMhlathuze Local Municipality, Civic Centre

RSVP:

Zenzele Bam on 072 891 5290 or Lesedi Mbipha on 066 287 0266 or sanral@fticonsulting.com

Transport will be provided for local media and interviews will be conducted on site.

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SANRAL refutes claims of ‘creative accounting’ and ‘hoarding’ cash

MEDIA STATEMENT

SANRAL refutes claims of ‘creative accounting’ and ‘hoarding’ cash

Pretoria, 18 October 2024 – The South African National Roads Agency SOC Limited (SANRAL) has dismissed as “mischievous and misleading” various claims that its financial records are incorrect.

SANRAL spokesman Vusi Mona says the national roads agency’s financial statements were diligently prepared in line with the best accounting practices and stressed that the Auditor-General of South Africa (AGSA) had signed off on SANRAL’s 2023/24 financial statements with an unqualified audit report.

Responding to a statement and media interviews by the Organisation Undoing Tax Abuse (OUTA), as well as an article in the Daily Maverick, Mona said various claims by OUTA and the media house were not based on facts and could have been clarified if either of the two parties was genuinely interested in understanding SANRAL’s position.

Mona said it was incorrect for OUTA to make the claims that it did without at least seeking clarification from the national roads agency. “SANRAL is a public entity which is proud to be delivering world-class road infrastructure in support of our country’s economy and ultimately its people. It is unhelpful for civil society organisations and/or media outlets to cast aspersions on our accounting practices without so much as providing us the opportunity to clarify any issues they may have. That leads us to conclude that these comments circulating in the media are mischievous and intentionally aimed at misleading the public.”

“SANRAL wants to place on record for the South African public some important facts that easily clarify questions raised in the media, without the relevant organisations seeking SANRAL’s comment,” said Mona.

“Regarding our reporting framework SANRAL wants to clarify that until the year ended 31 March 2023, SANRAL reported its revenue according to International Financial Reporting Standards (IFRS). The IFRS reporting framework was used by SANRAL from 2007/08 and that decision was backed by permissions from the National Treasury. This was done because SANRAL had

bonds which were listed on the Johannesburg Stock Exchange (JSE), for reporting comparability purposes with other State Owned Entities (SOEs) that were also listed on the JSE, and also had loans which had IFRS as part of the requirements.”

“In South Africa, the Accounting Standards Board (ASB) is mandated by the National Treasury (NT) to release reporting standards in South Africa for the public sector. The reporting standards are known as Generally Recognised Accounting Practice (GRAP) and Interpretation of GRAP (IGRAP), which is where a standard is clarified by the ASB so that users and preparers of AFS do not use their own interpretation of a particular standard which is being interpreted. In 2018, the ASB issued Directive 12 titled ‘The selection of appropriate reporting framework’. The aim of the directive was to direct SOEs, government departments and other State-like institutions to report on IFRS if they are commercial entities (meaning their purpose is largely profit driven) and on GRAP where they are largely grant funded from the fiscus. SANRAL is largely grant funded and therefore the reporting framework per Directive 12 should have been GRAP. However, SANRAL was given permission to continue with IFRS until 31 March 2023. This permission was granted to allow ASB to issue financial instruments related standards, for which there were no equivalent GRAP standards. Once these were developed by ASB, NT withdrew the permission to use IFRS as a reporting framework and SANRAL was instructed to apply GRAP from 1 April 2023. The move from IFRS to GRAP had an impact on the reported figures for the current year and prior years, which meant that certain line items on the statement of Financial Performance and Position had to be restated,” said Mona.

Furthermore, regarding e-toll revenue treatment, it is important to note that SANRAL applied the following GRAP and IGRAP standards to recognise its revenue;

GRAP 9 titled “Revenue from exchange transactions”,

IGRAP 1 titled “Applying the Probability Test on initial Recognition of Revenue”, and

IGRAP 20 titled “Accounting for Adjustments to Revenue.”

“The requirements of GRAP standards differ from IFRS in that they require statutory revenue to be recognised as revenue with a corresponding statutory receivable as the entity has an obligation to collect all the statutory revenue. This has resulted in the recognition in revenue of amounts that were previously not recognised under IFRS as the transactions did not meet the requirements of the related standards. The receivables are accounted for in accordance with GRAP 104.

GRAP requires SANRAL to recognise all e-toll fees billed regardless of collectability, resulting in higher e-toll revenue being reported in the 2023/24 financial year and 2022/23 revenue being restated. See Note 2 of the Annual Report for more details on the policies and treatment related to adoption of GRAP. However, the e-toll revenue was also impaired, as a result of collectability issues as explained in expenses under the statement of Financial Performance. Thus, the e-toll revenue is fully recognised as revenue and then impaired in expenses, leaving a small net amount of collectable or realisable revenue.

Hoarding of unspent cash (non-toll)

Mona said the R42 billion underspending on SANRAL’s non-toll portfolio was primarily due to project commitments. “SANRAL’s operational and capital expenditure projects span multiple years, with operational expenses largely involving Routine Road Maintenance (RRM) covered by 134 contracts across the entire SANRAL network. These contracts are valid for five years. Similarly, capital expenditure projects are executed over a period of three to five years.

“As indicated above, the non-toll segment has project commitments amounting to approximately R67.94 billion by the end of the 2023/24 fiscal year. This includes R14.24 billion for the 2024/25 financial year and R53.7 billion projected for 2025/26 and beyond. This implies that the R42 billion is not sitting unused but is allocated to paying for contracts and suppliers related to road maintenance and construction projects,” said Mona.

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Issued by FTI Consulting on behalf of SANRAL. For editorial content or additional information contact: Lwando Mahlasela on 082 440 5305 or pressoffice@nra.co.za

Full closure of Alan Paton Avenue Southbound Carriageway between Blackburrow Road and N3 for the construction of the Epworth Underpass

TRAFFIC ADVISORY

Full closure of Alan Paton Avenue Southbound Carriageway between Blackburrow Road and N3

for the construction of the Epworth Underpass

Pietermaritzburg, 17 October 2024 – The Alan Paton Avenue Southbound Carriageway (onramp from Alan Paton Avenue to the N3 towards Durban) will be fully closed to traffic to facilitate roadworks as part of the N3 upgrade project between Gladys Manzi (Murray) Road and New England Road Interchange, the South African National Roads Agency SOC Limited (SANRAL) has announced.

This is a planned closure and will allow:

  • The demolition of the existing N3 Epworth Underpass.
  • The construction of the new N3 Epworth Underpass in a new location.
  • The construction of the new Blackburrow Spruit Culvert.
  • The construction of adjacent N3 and Alan Paton Avenue roadworks.

The closure will take place from 27 October 2024 to 27 November 2025, a period of approximately 11 months.

The Alan Paton Avenue Northbound carriageway (offramp from the N3 to Alan Paton Avenue/ Scottsville/Pietermaritzburg CBD) will remain open to traffic during this period.

“Our traffic accommodation team, with the assistance of the Road Traffic Inspectorate (RTI), will monitor the closure,” said Jason Lowe, SANRAL’s Eastern Region Project Manager.

Alternatives for access to the N3 Southbound carriageway (towards Durban) are via the New England Road and Market Road interchanges. A temporary access ramp will be provided for local traffic to access the N3 Southbound carriageway. It is also expected that the new link between Cleland Road and Market Interchange would be in place within six months from the Alan Paton Road Ramp Closure.

“Increased traffic volumes can be expected at the New England Road and Market Road interchanges, as well as the roads leading to them. These will lead to increased travel times, especially during the morning and afternoon peak hours. Motorists are urged to plan and adjust their routes ahead of time to minimise delays and remain patient during the closure. SANRAL apologises for any inconvenience caused and appreciates the public’s patience during the ongoing major road enhancements,” said Lowe.

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SANRAL N2/N3 EB Cloete upgrades and road closures

TRAFFIC ADVISORY

SANRAL N2/N3 EB Cloete upgrades and road closures

Durban, 15 October 2024 – The installation of the temporary pedestrian bridge over the N3 at Rockdale Road will result in full road closures between St James Avenue/Harry Gwala Road Interchange and the EB Cloete Interchange, the South African National Roads Agency SOC Limited (SANRAL) has announced.

  • N3 East Bound Lane Closure: 20:00 on Wednesday, 30 October 2024, to 00:00 Thursday, 31 October 2024.
  • N3 West Bound Lane Closure: 00:00 on Thursday, 31 October 2024, to 04:00 Thursday, 31 October 2024.

Note that the closure will first take place on the East Bound carriageway followed by the closure on the West Bound carriageway – on the same evening.

“These closures are to allow for the installation of a temporary pedestrian bridge to provide a safe crossing for pedestrians commuting between Chesterville and Westville due to the Rockdale Bridge being demolished at the end of August 2024,” said Corné Roux, SANRAL’s Eastern Region Project Engineer.

This provision forms part of SANRAL’s continuous drive to ensure pedestrian safety on its road network.

As required for the safety of both road users and the construction team, full traffic accommodation plans are in place.

Trucks and heavy vehicles are advised to try and delay trips over this period and/or find suitable staging areas during this timeframe to avoid major congestion. Public transport operators are asked to ensure their drivers are aware of route closures and alternatives affecting their commuter routes.

Light vehicle traffic, as well as emergency services and traffic management, are advised to make use of alternative routes.

A detailed alternative route guide is included below and can be found on this link: https://www.nra.co.za/project-n2n3-upgrades?region_id=eastern

All road-users are advised to plan their routes ahead of time and where possible, leave for destinations earlier than usual.

Alternative route options:

N3 East Bound Closures (Pinetown to Durban):

  • N3 East Bound fully closed at St James Avenue/Harry Gwala Road Interchange – off-ramp to Westville/Pavilion Shopping Centre will remain open
  • St James Avenue loop ramp will be closed from the Pavilion to Durban
  • St James Avenue left slip closed from Westville to Durban

N3 West Bound Closures (Durban to Pinetown):

  • N3 West Bound fully closed at EB Cloete Interchange (AKA Spaghetti Junction) – motorists can only proceed to the N2 North or South
  • N2 North Bound off-ramp closed at Spaghetti Junction from Amanzimtoti to Pinetown
  • N2 South Bound off-ramp closed at Spaghetti Junction from Umhlanga Rocks to Pinetown

Roux said, “SANRAL appeals to road users to note and comply with the advance warning signs and speed restrictions when travelling past the construction work zones. To prioritise the safety of both the construction workers and road users, the speed limit along the route will be reduced during construction.”

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SANRAL achieves great results amid a challenging 2023/24 Financial Year

MEDIA RELEASE

SANRAL achieves great results amid a challenging 2023/24 Financial Year

Pretoria, 11 October 2024 – The South African National Roads Agency SOC Limited (SANRAL) has described the 2023/24 financial year as one characterised by resilience and agility, to conclude with a strong financial performance, an unqualified audit report and accelerated investment in road infrastructure. The total spend on toll roads came in at R4.1 billion, while expenditure on non-toll roads came in at R23 billion, of which R12,3 billion was spent on capital projects and R10.7 billion on maintenance.

“The significant investments in both toll and non-toll roads underscore our dedication to enhancing South Africa’s road infrastructure, ensuring safer, more efficient mobility for all,” said SANRAL CEO, Reginald Demana.

Looking at the financial performance, total assets stood at R772 billion, 17% up from the previous year, while both operating activities and investing activities increased by 23% and 7% respectively.

Demana explained that many targets had not just been achieved, but significantly exceeded. “On an engineering level, we set out to resurface 1 200km of our network but had in fact achieved 1 984km. This is significantly up from 687.9km the previous year and speaks to a robust commitment to maintenance and management of our asset,” said Demana. While engineering is a core focus, the impact of SANRAL’s work on transformation, job creation, road safety and capacity creation cannot be overstated.

  • Against a target of 75%, SANRAL achieved 99.6% on Routine Road Maintenance (RRM) work performed by Black-owned small, medium and micro enterprises (SMMEs).
  • On total number of SMMEs participating in SANRAL projects, the target was 1 800. SANRAL achieved 2 249, significantly up from 1 928 the previous year.
  • SANRAL had set out to create 12 000 full-time equivalent (FTE) jobs but had achieved 12 652, also up from 11 366 the previous year. Looking at the road ahead, SANRAL is on a solid financial standing with R87 billion allocated by National Treasury for the next three years. Borrowing capacity has increased to R16.5 billion, allowing for larger-scale project funding. The acceleration of spending on projects is resulting in reduced cash balances through faster project execution.

Demana attributed the achievement to steady operational and strategic growth.

“We are a growing organisation with an increasing network size that currently stands at 24 384 km, plus an additional 3 350 km of roads under assessment for transfer from provincial authorities,” said Demana.

“It has been a challenging year on many fronts, but we have risen to those challenges, guided by our unwavering commitment to infrastructure development that fosters economic growth and drives transformation. SANRAL’s role in creating opportunities, particularly for Black-owned enterprises, remains central to our mission. As we move forward, we will continue to ensure that our projects contribute meaningfully to job creation, community upliftment, and the economic empowerment of South Africans. Our dedication to these developmental outcomes is steadfast, and we will use our investments to catalyse positive change for generations to come,” he added. SANRAL’s 2023/24 Annual Report is available on the website and can be downloaded at https://www.nra.co.za/integrated-report?region_id=national. .

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Closure of the Overpass Bridge between Cato Ridge and Camperdown

 

MEDIA RELEASE

Closure of the Overpass Bridge between Cato Ridge and Camperdown

Pietermaritzburg, 11 October 2024 – Construction of the new section of the R103 has now reached the stage when the intersection at the Overpass Bridge, that is still in daily use, and the new R103 needs to be constructed, the South African National Roads Agency SOC Limited (SANRAL) has announced.

“The balustrades and walkways of the existing bridge also need to be refurbished. Unfortunately, due to the restricted width of the existing bridge, this work cannot be completed without temporarily closing the bridge. The R103 Overpass Bridge at Camperdown will therefore be closed from 8:00am on 21 October 2024 until 5:00pm on 5 November 2024,” said Thabiso Dladla, SANRAL’s Eastern Region Project Manager.

The newly constructed section of the R103 between the Overpass Bridge and the Camperdown Interchange will be opened to traffic prior to the closing of the Overpass Bridge. Traffic on the R103 between Cato Ridge and Camperdown will be able to cross the N3 highway at the Camperdown Interchange.

“Motorists are asked to adhere strictly to all the speed restrictions and advance warning signage. SANRAL apologises for any inconvenience caused,” said Dladla.

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Transport Minister Barbara Creecy says N2-N3 upgrade in KwaZulu-Natal is creating thousands of jobs and providing massive boost to province’s economy

MEDIA RELEASE

Transport Minister Barbara Creecy says N2-N3 upgrade in KwaZulu-Natal is creating thousands of jobs and providing massive boost to province’s economy

SANRAL N3 MINISTER1.mp3

SANRAL N3 MINISTER2.mp3

Durban, 10 October 2024 – Transport Minister Barbara Creecy says the South African National Road Agency’s (SANRAL) flagship project to upgrade the N2 and N3 in KwaZulu-Natal is creating tens of thousands of jobs and providing a massive boost to the province’s economy. As part of the government’s Transport Month activities, Minister Creecy on Thursday inspected progress on the construction work being undertaken on the N2 and N3, accompanied by KwaZulu-Natal MEC for Transport and Human Settlements.

Speaking at the Key Ridge construction site between Durban and Pietermaritzburg, Minister Creecy said: “I have seen the massive construction works currently underway on both the N2 and N3. Today we are showcasing the critical road infrastructure which SANRAL is developing here in KwaZulu-Natal. The work that we are currently undertaking on the N2 and N3 is the biggest road upgrade that KwaZulu-Natal has seen in several decades. Once completed, 135kms will have been upgraded to a total value of R50 billion.”

MEC Duma said the KwaZulu-Natal Provincial Government appreciated the contribution that SANRAL’s multi-billion-rand upgrades on the N2 and N3 were making to economic development, SMME empowerment and job creation for the youth. MEC Duma said SANRAL was playing a pivotal role in the provision of infrastructure. “This project to upgrade the N2 and N3 will be a legacy project for the province of KwaZulu-Natal and its people,” he said.

Minister Creecy said the N2-N3 upgrades were aimed at relieving congestion, improving safety and facilitating economic growth through the efficient movement of goods and people.

“This corridor is strategically important for both the movement of people and freight. A total of 70% of the freight that moves on land goes through the N2-N3 corridor to the

ports of Durban and Richards Bay. So easing traffic congestion and making these roads safer for both passengers and freight is a major objective of these projects,” she said.

“These freeways have been plagued by congestion and road accidents, particularly sections such as the one here at Key Ridge on the N3 which has a very steep gradient and has led to numerous truck accidents. The realignment of the entire section of road here from Key Ridge to Hammarsdale, which is worth R4.5 billion over 51 months, will have a major impact and significantly improve safety for all road users, especially trucks,” said Minister Creecy.

Minister Creecy said SANRAL was, through its projects, also empowering youth with the necessary skills to enable them to contribute to the economy. “We are doing important work to ensure that young people, whether they are in the artisan class or university graduates, have an opportunity to undertake onsite training so that they can then be registered as professionals or artisans in their particular category of work. Altogether, on this project to date, we have trained 1,000 young people. These include civil engineers, quantity surveyors, chartered accountants and artisans working on everything from welding and bricklaying to plumbing.

“Once they have completed their training here, they will be able to register as professionals. I’m particularly interested in the question of young graduates because we understand that throughout our country’s history, State-Owned Enterprises have played a crucial role in providing practical training to graduates of Further Education Training (FET) colleges, universities and other forms of formal training. In the past, that was not going so well. On this project, overall, we’re spending R340 million on training young people. As I mentioned, 1,000 have been included to date. The intention is that, over time, a total of 2,000 young people will receive their formal technical training on all of these construction sites.”

Through the N2-N3 upgrades, SANRAL would also assist small construction companies to achieve higher technical gradings that would enable them to tender for higher-value contracts. “One of the major problems we face in this country in terms of economic development and growth from a construction point of view is that it is difficult for small construction companies to grow and attain the necessary experience to move up the Construction Industry Development Board (CIDB) registration ladder. A total of 30% of the spend on this huge project is on sub-contractors, with the total value of this particular package of work being about R8 billion. The intention is to ensure that by the time a company has finished their particular package of work, they’re able to upgrade their CIDB grading. This means that next time, they will be able to undertake a higher category of work and, obviously, work of greater value.”

“These upgrades are not just about improving roads — they are about laying the foundation for future economic growth and ensuring sustainable livelihoods for the people of KwaZulu-Natal, South Africa, and the broader Southern African region. These investments will unlock new opportunities, empower local communities, and transform the flow of goods and people across our continent,” added Minister Creecy.

The Minister emphasised that the Seventh Administration will invest considerably more in infrastructure which is in line with one of the Seventh Administration’s top priorities to drive inclusive growth, create jobs and reduce poverty.

BACKGROUND

The N2 and N3 in KwaZulu-Natal form part of government’s Strategic Integrated Projects (SIP2: Durban-Free State-Gauteng Logistics and Industrial Corridor), connecting the Port of Durban – the largest port in Sub-Saharan Africa – to Gauteng, the largest economic hub in the country – and further north to neighbouring countries in the Southern African Development Community region.

The N2-N3 upgrades programme includes nine packages and five major interchanges. The upgrade of the N2 is a 55km stretch of road from Lovu River on the South Coast to Umdloti on the North Coast, while the N3 upgrade is focused on an 80km stretch between Durban and Pietermaritzburg.

There are a total of 16 construction packages with a combined value of R29 billion, creating an estimated 33 500 total full-time equivalent (FTE) direct jobs. An estimated R2.3 billion will be spent on wages for local labour while R8.8 billion will be spent on targeted black-owned enterprises (SMMEs) over the next eight years.

On the N2, a total of nine (9) work packages will be executed, with an estimated construction value of R19 billion. The total full-time equivalent (FTE) direct jobs to be created is 21 500. An estimated R1.5 billion will be spent on wages for local labour while R5.7 billion will be spent on targeted black-owned enterprises (SMMEs) over the next eight years.

Packages that are under construction on the N2 and N3 include:

  • Cato Ridge to Dardanelles Interchange (N3), which commenced in April 2021, with an estimated completion date of June 2025. The duration is 51 months, and the project value is R1.4 billion.
  • Dardanelles Interchange to Lynnfield Park (N3), which commenced in January 2021, with an estimated completion date of June 2025. The duration is 53 months, and the project value is R1.4 billion.
  • Lynnfield Park to Ashburton Interchange (N3), which commenced in January 2021, with an estimated completion date of May 2024. The duration is 52 months, and the project value is R1.228 billion.
  • KwaMashu Interchange to Umdloti (N2), which commenced in August 2022, with an estimated completion date of April 2026. The duration is 56 months, and the project value is R1.2 billion.
  • EB Cloete (N2), which commenced in May 2023, with an estimated completion date August 2028. The duration is 63 months, and the project value is R5 billion. The upgrade of the EB Cloete Interchange is hugely significant. Located at the intersection of the N2 and the N3 in the eThekwini Metropolitan Municipality, EB Cloete Interchange will, once completed, stand tall as one of the most impressive architectural and engineering showpieces on the continent.
  • Westville Viaduct to Paradise Valley (N3), which commenced in June 2023, with an estimated completion date of September 2027. The duration is 51 months, and the project value is R4.7 billion.
  • Key Ridge to Hammarsdale (N3), which commenced in May 2023, with an estimated completion date of August 2027. The duration is 51 months, and the project value is R4.5 billion.
  • Ashburton to Murray Road (N3), which commenced in November 2023, with an estimated completion date of February 2027. The duration is 45 months, and the project value is R 2.4 billion.
  • Murray Road to New England (N3), which commenced in September 2023, with an estimated completion date of February 2027. The duration is 41 months, and the project value is R1.9 billion.

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