Bullet train back on track to help grow KZN economy: premier Thami Ntuli

The proposed bullet train between KwaZulu-Natal and Gauteng to improve interprovincial freight movement is back on track.

That’s according to KZN premier Thami Ntuli who delivered his state of the province address at Woodburn Stadium in Pietermaritzburg on Friday.

Ntuli said the national transport department and Passenger Rail Agency of South Africa were in talks about the Freight Rail Revitalisation programme relating to Durban and Richards Bay railway lines.

“Our long-term vision is to have a bullet train from Durban to Johannesburg and we are in talks with strategic collaborators,” he said.

The multibillion-rand high-speed rail link between the provinces to drastically cut transport times was first mooted by former transport minister Sbu Ndebele in 2010. 

Ntuli also said township and rural economies in the province had been identified as vital role players in economic growth and job creation. The 2024 township economy survey found it is valued at R7.3bn.

“In the coming weeks, economic development, tourism and environmental affairs MEC Musa Zondi will provide a comprehensive report on the progress of the spaza shop registration process,” Ntuli said

As President Cyril Ramaphosa outlined during his state of the nation address, the urgent task is to grow the economy to unlock opportunities for employment, uplift communities and improve the lives of all South Africans. In line with this, KZN has came up with eight focus areas:

• rebuilding the economy;
• strengthening local government and governance;
• sustainable development;
• improving health care and education;
• delivering better human settlements and infrastructure;
• improving community safety;
• mitigating climate change; and
• building a capable, ethical and developmental state.

“These will be crystallised and detailed when the MECs present their budget policy statements and plans [in the legislature],” said Ntuli.

KwaZulu-Natal’s economy held immense potential, with strategic assets such as the Durban and Richards Bay ports, rich agricultural resources, a thriving tourism and heritage sector and emerging opportunities in the digital economy.

“As part of stimulating economic growth we held the KZN Investment Conference in November, resulting in 16 companies pledging R75.8bn for various projects including the R15bn Westown mixed-use development in Shongweni and Sappi Southern Africa’s R10.8bn upgrades.”

The province, through Trade Investment KwaZulu-Natal, set a target of securing investments worth R4bn in the 2025/2026 financial year.

“These investments are expected to generate 5,000 jobs, significantly addressing unemployment and improving livelihoods in the province. Business expansion projects for 2025/2026 are valued at R1.1bn.”

Richards Bay Industrial Development Zone continues to attract investors, including:

• The Nyanza Light Metals project in the Richards Bay Industrial Development Zone, with secured funding to the value of R116m. Site clearance was 81% complete by January.
• A R7bn investment by LNG Projects supported by joint investment by the Transnet National Ports Authority and Zululand Energy Terminals Consortium in Richards Bay. This will create more than 1,200 job opportunities.
• Wilmar Processing SA, which had initially intended to invest R1.1bn with preliminary indications of the investment value increasing to more than R2bn at the end of phase 2.

Ntuli also addressed the issue of Ithala bank.

“We have agreed to reposition the Ithala Development Finance Corporation (IDFC) to respond to the province’s economic growth agenda. In this regard, the IDFC will continue driving economic transformation and empowerment, targeting the creation of at least 2,000 jobs through small business financing and infrastructure development. Ithala has committed R200m towards funding SMMEs and co-operatives in rural and township economies, reinforcing our pledge of an inclusive economy.”

With regard to IDFC subsidiary Ithala bank, talks are being held with national government, he said.

“We acknowledge the unity of purpose around the issue of Ithala where all parties inside and outside the legislature rallied in support of the existence of Ithala. We assure the people of KwaZulu-Natal that Ithala is going nowhere, it is here to stay.”

He acknowledged the SIU probe into alleged irregularities at Ithala.

Transport and human settlements MEC Siboniso Duma welcomed the premier’s focus on the revitalisation of the freight sector and the acceleration of the establishment of the bullet train between Durban and Gauteng.

“In line with the premier’s announcement on the rail network, we will work with the national government to ensure we are part of the revitalisation and creation of improved efficiency in the rail network,” he said.

 “As KZN, we offer to make a meaningful contribution towards the ushering in of a new era. We have stated in the past that our economy is driven largely through the transport and logistics sectors based on the two major ports in the province.”

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