Friday, February 19, 2010.

From Creamer Media in Johannesburg, I'm Mary-Anne O'Donnell.

Making headlines today:

State-owned transport utility Transnet has indicated that a cap of 4.5-billion-rand has been set for the amount of capital it can extract from that portion of the increase in the fuel levy. This is to help it fund a 12-billion-rand fuel pipeline from Durban to Johannesburg.

In his inaugural Budget address, Finance Minister Pravin Gordhan confirmed an increase in the general fuel levy of 10 cents a litre, as well as an additional 7,5 cents a litre levy on both diesel and petrol to help fund the pipeline over the next three years. Further, a Road Accident Fund levy of 8 cents a litre was also proposed.

Together, these increases will be implemented from April 7, 2010, raising taxes as a percentage of the pump price from around 23% to 33.9% on petrol and 31,3% on diesel for 2009/10.

The levy for Transnet will reportedly only cover the security of supply component of the so-called new multi-product pipeline, which is currently under construction.

South African National Roads Agency Limited's Gauteng Freeway Improvement Project's project manager, Alex van Niekerk, reports that, on average, phase one of the GFIP is around 70% completed.

However, he says that this is a general figure, with some early-starter projects further advanced, and those which broke ground only recently below this mark.

The 15.1-billion-rand first phase of the GFIP aims to upgrade 185 kilometers of freeway network in Gauteng.

Meanwhile, he says that the abnormally high rainfall seen in January has definitely had an impact on the project's progress.

Sanral will do an assessment later this month to determine whether GFIP first phase work is running according to schedule.

Also making headlines:

The PBMR Company could shed 75% of its staff after its budget is reduced.
Toyota South Africa Motors assures that there's no steering problem on the South African Corolla.
Industrial transport group Grindrod is in talks with Transnet to increase the rail capacity between its Matola Coal Terminal, in Maputo, and South Africa.
And, trade ministers are unlikely to gather in late March, as proposed, to decide whether a deal is possible this year in the World Trade Organisation's long-running Doha round.

That's a round up of news making headlines today. For more on these and other stories please visit engineeringnews.co.za.