http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 16.51Change: 0.02
R/$ = 14.28Change: 0.07
Au 1291.71 $/ozChange: -2.18
Pt 1081.50 $/ozChange: -2.00
 
 
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 Letters About Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jun 25, 2010

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

Back
podsafm_25062010
 
 
 
Construction|Port|Africa|Business|CoAL|Cutting|Engineering|Eskom|Innovation|Mining|PROJECT|Projects|rail|Transnet|transport|Africa|Infrastructure|Iron Ore|Iron-ore
Construction|Port|Africa|Business|CoAL|Cutting|Engineering|Eskom|Innovation|Mining|PROJECT|Projects|rail|Transnet|transport|Africa|Infrastructure|Iron Ore|Iron-ore
construction|port|africa-company|business|coal|cutting|engineering|eskom|innovation|mining|project|projects|rail|transnet|transport|africa|infrastructure|iron-ore|iron-ore-person



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

To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here
 
Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other SAFM
More
 
 
Latest News
Transnet announced on Monday the implementation of a series of governance, control and monitoring measures to ensure the Original Equipment Manufacturers (OEMs) meet the company’s stringent localisation obligations and supplier development commitments. Transnet...
South African Civil Aviation Authority (SACAA) on Sunday said it had lifted the suspension of SA Express’ Air Operator Certificate (AOC). “This means that the airline may, with immediate effect, resume operating their fleet of 26 aircraft,” said SACAA in a statement.
US Democratic presidential front-runner Hillary Clinton begins a two-day tour on Monday through rural, traditionally coal-reliant parts of the eastern Appalachian region where Republican rival Donald Trump's pro-coal, anti-trade message has resonated with...
More
 
 
Recent Research Reports
Automotive 2016: A review of South Africa's automotive sector (PDF Report)
Creamer Media’s Automotive 2016 Report provides an overview of South Africa’s automotive industry over the past 12 months. The report provides insight into local demand and production, vehicle imports and exports, investment and competitiveness in the sector, as well...
Energy Roundup – April 2016 (PDF Report)
The April 2016 roundup covers activities across South Africa for March 2016 and includes details of a North Gauteng High Court Judge’s dismissal of a court application to postpone the 9.4% electricity tariff increase, which the National Energy Regulator of South...
Electricity 2016: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2016 report provides an overview of South Africa’s electricity sector, focusing on State-owned power utility Eskom and independent power producers, electricity planning, transmission, distribution and the theft thereof, besides other issues.
Energy Roundup – March 2016 (PDF Report)
The March 2016 roundup covers activities across South Africa for February 2016 and includes details of the Department of Energy’s plans to announce the preferred bidders for the first tranche of the coal independent power producer procurement programme; the Council...
Steel 2016: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2016 Report examines South Africa’s steel industry over the past 12 months. The report provides insight into the global steel market and and particularly into South South Africa’s steel sector, including production and consumption, main...
Construction 2016: A review of South Africa's construction industry (PDF Report)
Creamer Media’s Construction 2016 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; key participants; local demand; geographic diversification; corporate activity; black economic...
 
 
 
 
 
This Week's Magazine
The two spent-fuel pools at Eskom’s 1 800 MW Koeberg nuclear power station, in the Western Cape, will be full by 2018, increasing the urgency on the State-owned utility to begin pursuing alternative storage options. Koeberg has, over the past 32 years, accumulated a...
South Africa lacks the skills necessary to implement the government’s plan to build 9.6 GWe of new nuclear energy capacity, warns nuclear-qualified Quality Strategies International CEO David Crawford. “Apart from the concern about the affordability of the programme,...
DOROS HADJIZENONOS The 700-series devices provide network security monitoring, app control, URL filtering, VPN security, antivirus, antispam, antibot, and advanced intrusion prevention and detection functionality
Cybersecurity multinational Check Point has released its latest 700-series cybersecurity systems for small businesses, which draw on its international threat intelligence to provide up-to-date cybersecurity, says Check Point South Africa country manager Doros...
Daimler Trucks and Buses Southern Africa (DTBSA) saw a marked slip in new-vehicle sales in 2015 compared with 2014, with sales dropping from 5 897 units to 5 300 units. The decline came as the South African new truck and bus market declined from 31 558 units in 2014...
Group of 20 (G-20) economies threatened to penalise havens that don’t share information on their banking clients after the leak of the Panama Papers provoked a global uproar over tax evasion. The G-20 will consider “defensive measures” against financial centers 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
Subscribe Now for $149 Close
Subscribe Now for $149