http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.83Change: -0.12
R/$ = 11.04Change: -0.17
Au 1172.85 $/ozChange: 3.68
Pt 1231.00 $/ozChange: -0.50
 
 
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  
 
 
Jun 25, 2010

25/06/2010 (On-The-Air)

Back
podsafm_25062010
Construction|Engineering|Port|Africa|CoAL|Engineering News|Eskom|Mining Weekly|PROJECT|Projects|Transnet|Africa|South Africa|Mining|Transport|Caesar Molebatsi|Infrastructure|Iron Ore|Martin Creamer|Rail|Engineering News|World Cup
Construction|Engineering|Port|Africa|CoAL|Eskom|PROJECT|Projects|Transnet|Africa||Mining|Transport|Infrastructure|Iron Ore|Rail||
construction|engineering|port|africa-company|coal|engineering-news|eskom|mining-weekly-company|project|projects|transnet|africa|south-africa|mining|transport-industry-term|caesar-molebatsi|infrastructure|iron-ore|martin-creamer|rail|engineering-news-published-medium|world-cup
© Reuse this



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

Molebatsi: Both Eskom and Transnet have massively underspent their investment targets.

Creamer: I don't like underspending, Caesar. You know, we had this great figure of R787-billion of infrastructure over three years. This was put into the framework for South Africa's response to the international economic crisis.

They used words like we must implement this on an expedited basis, but then there is culling by stealth. You know, they don't even tell us that they are underspending their budget. Now you look at Eskom who just reported an 18% underspent, which is R15-billion, and Transnet nearly a R3-billion underspend, which is like 16% of the budget.

What is happening is that when these projects roll-out they don't tell us that they are not going to spend this and we now see the situation with the construction industry wanting to quickly go outside the country and get business because what was envisaged that would come through hasn't come through.

We know that there is a lot of legal wrangling particularly with these State-owned enterprises and we've seen CEO problems there, but they mustn't allow this to get in the way of the targets they have, because we have got this unemployment position in South Africa. We need to create wealth as well.

Molebatsi: I have to ask you Martin, I think sometimes I want to understand why? Is it because they don't have the capacity to put out tenders?

Creamer: Well, you know, you have got this very blurry situation with tenders all of a sudden not coming out. You have almost got a project paralysis that people are worried about because 2010 we got those World Cup projects going because of the firm deadline, so we can do it. Let's see everything like a World Cup project.

Molebatsi: Transnet is trying to breathe new life into South Africa's under-used branch lines with private sector help.

Creamer: Again, we have got this under utilisation of existing capacity where wealth and jobs can be created. Transnet is really a large-scale mover of freight, a pipeline operator and a rail and port operator. What it wants to see with the underused branch lines is the involvement of private sector, so it has asked for people to register interest in actually talking over these branch lines.

We are talking about 7 300 km of branch lines. That is like 35 % of the total 20 000 km. Less then half of that is actually operative. So, there is a 55% dormant situation and because they do the big hub-to-hub work, they want other people to express interest and for smaller operators to come in and take over these branch lines or bundles of branch lines so that we can get this transport infrastructure moving again, which always stimulates economic activity.

They also know that among this 7 300 km of branch lines, there are branches that they are also interested in. That is why they want to have the Cabinet approve the private sector participation, which the unions are not that happy about.

On these lines where Transnet still see some value, they can partner the private sector, without just letting the private sector doing it on its own. But, on many of the smaller ones they want the private sector take over and even take over stations where there can be a lot of innovation.

Molebatsi: Do we have enough engineering muscle in this country, especially railway engineering, because as far as I know there is one university that has got a seat, one of the lectureships where people are actually encouraged to go into railway engineering in particular. But, do we have enough of those?

Creamer: If they haven't got enough capacity they must shout, you know, they mustn't do cutting by stealth, because we want to know early.

Molebatsi: Transnet says that it is determined to move coal into a growth trend after years of missed opportunity.

Creamer: We have had this missed opportunity that Transnet is now determined that they are going to have the capacity to move more coal. I mean, we were doing very well until about 2005. Then the rail side of it did not come to party and we only exported 61-million tons of coal last year, where as the port capacity is at 71-million tons.

That is private sector owned and you have got the State side of it. The rail not coming to the party to get sufficient coal. Now, the private sector port has already pushed up its capacity to 91-million tons and we are still talking in the 60-million ton level from the rail side.

This is a wealth opportunity lost, a job opportunity lost again. Transnet is saying that, yes, they will take the blame for some of this. Obviously when there is uncertainty on rail the coal companies also don't come to the party.

So, they also need to that and they want the coal companies to be confident as the iron-ore are where they work on a take or pay basis. If Transnet wants to put another R15-billion into augmenting this coal line, which is one of the potential money spinners for Transnet, but they want the coal miners to come in on a take-or-pay basis as the iron-ore people do.

Then I think we will go ahead with much more coal exports hopefully one day matching the port capacity, which is an existing 91-million tons, but unfortunately we are still talking in the 68-million ton level from a rail point of view.

Molebatsi: 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
The retail price of 95-grade petrol in South Africa will drop by 45 cents or 3.3 percent a liter from next Wednesday, while wholesale diesel will decrease by 4.9 percent, the government said on Friday. Petrol will cost 13.16 rand ($1.20) a liter while the wholesale...
Special purpose vehicle GreenCape will, by the end of 2014, make an application to the Department of Trade and Industry (DTI), the Western Cape provincial government and the City of Cape Town to declare Atlantis, on the Western seaboard, a special economic zone...
The German government has committed a further R70-million towards the second phase of the Non-Motorised Transport (NMT) programme. The NMT programme forms part of the Department of Environmental Affairs’ 2010 FIFA World Cup National Greening Legacy Programme.
More
 
 
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
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.
 
 
 
 
 
This Week's Magazine
In the next 20 years, it was expected that, in Africa, more people would live in cities and towns than in rural areas, United Nations Habitat executive director Dr Aisa Kirabo Kacyira said at the Human Settlements Indaba that took place earlier this month in...
Tough-talking Human Settlements Minister Lindiwe Sisulu has committed government to building 1.5-million low-cost houses over the next five years, telling the Human Settlements Indaba in Johannesburg on Wednesday that the State would achieve this target through the...
Over the past 20 years there has been persistent concern about deindustrialisation in South Africa, as well as the fact that locally produced manufactured products have been increasingly displaced by imports.
Financial agreement for Ghanian independent power producer (IPP) Cenpower Generation Company’s $900-million, 350 MW combined-cycle gas-turbine power plant was finalised earlier this month, paving the way for the project’s construction to begin before 2015 in Tema,...
The revenue implications for South Africa of ‘base erosion and profit shifting’ by corporate taxpayers are firmly in the crosshairs of the Davis Tax Committee (DTC) and Judge Dennis Davis hinted last week that recommendations were being considered to “detect and...
 
 
 
 
 
 
 
 
 
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