http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.19Change: 0.12
R/$ = 11.25Change: 0.03
Au 1214.31 $/ozChange: 5.62
Pt 1283.70 $/ozChange: -18.30
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Apr 13, 2012

13/04/2012 (On-The-Air)

Back
safmpod13april2012
DURBAN|Engineering|London|Port|Port Elizabeth|Africa|CoAL|Engineering News|Eskom|Generator|Mining Weekly|Ports|PROJECT|Projects|Resources|Roads|Transnet|Water|Africa|Cuba|South Africa|Durban Airport|Durban Port|Port Of Coega|Energy|Inadequate Commodity Railway Network|Logistics|Mining|Richards Bay|Brian Molefe|Iron Ore|Martin Creamer|Power|Rail|Water|Engineering News
Engineering|Port||Africa|CoAL|Eskom|Generator|Ports|PROJECT|Projects|Resources|Roads|Transnet|Water|Africa|||Energy|Logistics|Mining||Iron Ore|Power|Rail|Water|
durban|engineering|london|port|port-elizabeth|africa-company|coal|engineering-news|eskom|generator|mining-weekly-company|ports|project|projects|resources|roads|transnet|water-company|africa|cuba|south-africa|durban-airport|durban-port|port-of-coega|energy|inadequate-commodity-railway-network|logistics|mining|richards-bay|brian-molefe|iron-ore|martin-creamer|power|rail|water|engineering-news-published-medium
© Reuse this



Every Friday morning, SAfm’s AMLive’s radio anchor Xolani Gwala speaks to Martin Creamer, publishing editor of Engineering News and Mining Weekly. Reported here is this Friday’s At the Coalface transcript:

Gwala: Durban’s new ‘dig-out’ port will test Transnet’s new private-sector participation scheme.

Creamer: This private-sector involvement in Transnet has been mooted for a long time, but it never surfaces. You see even with this R300-billion expenditure over seven years, its great that this is happening, you’ll find that the real private-sector participation is probably going to come outside of that. The real private-sector participation will be in this new ‘dig-out’ port.

Gwala: What is this ‘dig-out’ port.

Creamer: It is quite an imaginative thing. Here is a picture of it looks like now, and I am showing Xolani the picture, and that's solid land mass. This is the plan, they are going to dig-out a new port and its on the site of the old Durban Airport. Now, you say why are they going to do this, why do they need this capacity, because its close to the Durban port.

Even as they speak they haven’t got enough container capacity. They know that no matter what they do at Durban there is not going to be enough room for the containers so they need another port.

So, they've gone on a State-to-State deal. They’ve gone to the Airports Company and said look you’ve got the old Durban Airport ground there, sell it to us for R1,8-billion and we’ll buy that, but we want to create a ‘dig-out’ port out of that. So it is an ambitious thing. I think the first shovel in the ground is probably only going to came in at about six years time.

So it is going to be a long-term project, but they say that the tenders for this is going to be invited in the next financial year, which is 2014/15. This will be where the big private sector involvement is. The probabilities are that we are going to have a port here that is built, owned and operated possibly by a private sector company, which will be a major first for a port of this size coming up.

That will be part of what Transnet calls this new private-sector participation. If you look at the R300-billion that they are spending, this dig-out port doesn’t really feature to any great extend, so the funding for this will come from a slice from the private-sector and there will be some sort of participation there.

Gwala: Describe it to for the listener, the picture, how different is it from the kind of ports that we have at the moment.

Creamer: We also have the channel that comes in, as at the Bluff in Durban, but you can see that they’ve got this breakwater, which they’ve created there and they are actually going to excavate a port. So you are going to have an area, which is now solid land mass, suddenly becoming a water-course with ports in as we see from this picture.

Gwala: South Africa’s inadequate commodity railway network is in line for a R100-billion boost.

Creamer: We talk these big numbers and we know that the government talks its big numbers. It talks R840-billion that it has got to spend, but it doesn’t spend it. But at least with Transnet and Eskom they have ability to spend. When they say they are going to spend some, they normally spend it. You can see that Transnet is a new organisation under Brian Molefe.

When he says that they are going to do more for the commodity business, that is the mining business, the export business, then we take him seriously, because we already see he surprised some of the mines. He has actually created more volumes of exports that they can cope with.

So he is definitely a new spark of energy in Transnet, which we need. This is State-owned, like the coal port is private sector operated.

The port is always moaning that we have got more capacity in Richards Bay then you are giving us coal. Brian Molefe wants to change that with part this R300-billion, but about a third of that R100-billion is going to go towards commodity boosting. So the logistics for coal-exports, manganese exports and iron-ore exports are going to come into this.

We see that about R50-billion of that R100-billion is earmarked now for coal and they are also unlocking the Waterberg. There is no rail there at the moment and they want to create that rail. It is absolutely essential that they unlock that coal, because the coal in Mpumalanga is depleting, but the power stations are still living.

So where are they going to get their coal? They need it to be railed in from the Waterberg. That rail that they want to create from the Waterberg to Richards Bay also passes the existing power stations where they can give off the domestic coal and then send off more coal for exports.

They are talking about 98-million tons a year, a 44% increase in the capacity of coal that goes through, which will be massive boost. That will mean that it will go ahead of the private-sector port, which is on 92-million tons at the moment.

Then 25-billion towards manganese, there is also other resources for the South Corridor, which includes East London and Port Elizabeth and also the Port of Coega. But, on the manganese front there has been a lot of angst.

We only export about 4-million tons a year, but we have got 80% of the world’s reserves and so they are looking to spending R25-billion there and boosting that to about 11-million tons a year over a seven year period.

Then iron-ore where they have actually been quite efficient, they are going to be more efficient and lift it up by about 57% to 83-million tons a year with a R28-billion expenditure. A lot of figures to consume, which is always difficult, but we can see that our logistics are now coming into line.

Gwala: I spoke to Brian earlier on in the week and he says that he is going to sign agreements with the private-sector to ensure that this capacity is used. That once he has put up these rails that people get on the rail and forget about our roads.

Creamer: I see they’ve even done their own due diligence to see that that coal is in the ground there and they know the sort of volume potentials, because the miners have to come to the party as well. On a use or lose basis.

Gwala: South Africa is losing engineers to other countries because of the lack of project work in this country.

Creamer: South African Institution of Civil Engineering (SAICE), they are very moderate in their criticism. They never have outbursts, when they have a media conference and they say that we are loosing engineers here, because of the lack of project work in South Africa then we have got to take them seriously because they don’t do this.

They never critisise, they normally just do their jobs with their heads down. SAICE is saying that our engineers are sitting idle, there are no projects coming through. A key element in this is government work, because the biggest employer of these engineers and the biggest generator of these projects is government.

They say, please guys give us a repeat of 2010 when we had the Soccer World Cup. We know that if we set a deadline on this we can do things. You’ve got money, you’ve got R840-billion so that's not the problem.

You’ve got resources, you’ve got engineers sitting here doing nothing, but they are going to leave the country just now because they’ve got no work. So, that is a wake-up call for the government, because they can’t put people into positions that don't understand and can not identify projects and also can not manage the spend allocated to that project.

They have got to have more efficiency. What seems to really hurt the civil engineers, like a dagger into the heart, is in fact this quote, “the governments audacity to bring in engineers together with other professions from Cuba en masse, with full and comprehensive packages to work in South Africa on South African government funded projects”.

That really sticks in their throats. I didn’t realise that, I thought that there were a lot of Cuban doctors, but I didn’t realise that there were civil engineers. I don’t think that this would isolate this if they didn’t have evidence, but we still have got to interrogate that the fact that they are saying that government is bringing in Cuban civil engineers en masse with fantastic packages.

Gwala: Thanks very much. Martin Creamer is publishing editor of Engineering News and Mining Weekly, he’ll be back with us at the same time next week.

Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other SAFM
More
 
 
Latest News
Updated 5 hours ago Protech Khuthele Holdings on Wednesday said, in a cautionary note to shareholders, that, as the failed company unwound, investigations were ongoing into its affairs. The company provided no indication of the completion date.
Updated 5 hours ago Private equity investors are increasingly becoming more active in Africa’s bid to narrow the $90-billion a year infrastructure funding gap constraining the continent’s growth. This was according to a survey by the Southern African Venture Capital and Private Equity...
Updated 5 hours ago The shortlist of innovations in the Africa Prize for Engineering Innovation was announced on Wednesday, comprising 12 new innovations from seven African countries. The shortlist announced by the UK’s Royal Academy of Engineering (RAEng) included innovations in...
More
 
 
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
 
 
 
 
 
This Week's Magazine
The latest TransUnion Vehicle Pricing Index (VPI) contains a number of small, but significant indications that the tide may at last be turning for the beleaguered used car industry. For the third successive quarter, used car inflation has increased on a year-on-year...
The South African new vehicle market is likely to reach around 630 000 units in 2014, down from the 650 000 units recorded in 2013, says Toyota South Africa Motors (TSAM) president and CEO Dr Johan van Zyl. Van Zyl is also president of the National Association of...
Efforts by the Kenya government to increase energy generation by 5 000 MW over the next three years received a major boost following the award of a $2-billion contract to build a coal power plant in Lamu.  Despite allegations of irregular tendering process, the...
Using crafty wordplay on a well-known Internet meme, brilliant South African-born US entrepreneur and businessperson Elon Musk announced that Tesla Motors would not initiate patent lawsuits against anyone who, in good faith, wanted to use its technology. Instead,...
August new vehicle sales declined by 1.4%, to 55 722 units, compared with the same month last year. Assisted by the car rental market, the South African new passenger car market, at 37 953 units, contracted by 1 047 units, or 2.7%, compared with August last year.
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks