http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.85Change: 0.03
R/$ = 10.93Change: 0.05
Au 1231.31 $/ozChange: -0.06
Pt 1248.50 $/ozChange: -1.00
 
 
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 Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Dec 13, 2011

Transnet considers plans to double R110bn capex pipeline

Back
Transnet Port Terminals (TPT) CEO Karl Socikwa on the desire to position the South African ports as the preferred trans-shipment system for Africa. Camera Work: Nicholas Boyd. Editing: Darlene Creamer.
DURBAN|Harbour|Johannesburg|Port|Africa|Diesel|Locomotives|Pipelines|Ports|PROJECT|Projects|Public Enterprises|System|Transnet|Transnet Port Terminals|Africa|South Africa|Durban Container Terminal|Maydon Wharf|Container Handling Equipment|Equipment|Logistics|State-owned Freight Logistics|Brian Molefe|Karl Socikw|Malusi Gigaba|Rail|Locomotives|Pipelines|Diesel
Harbour|Port|Africa|Diesel|Locomotives|Pipelines|Ports|PROJECT|Projects|System|Transnet|Transnet Port Terminals|Africa|||Equipment|Logistics||Rail|Locomotives|Pipelines|
durban|harbour|johannesburg|port|africa-company|diesel-company|locomotives|pipelines-company|ports|project|projects|public-enterprises|system|transnet|transnet-port-terminals|africa|south-africa|durban-container-terminal|maydon-wharf|container-handling-equipment|equipment|logistics|state-owned-freight-logistics|brian-molefe|karl-socikw|malusi-gigaba|rail|locomotives-product|pipelines|diesel
© Reuse this



State-owned freight logistics group Transnet is considering plans to double its current R110.6-billion capital expenditure (capex) programme in a bid to ensure that rail, ports and pipelines capacity is developed ahead of demand, an executive committee member has revealed.

Transnet Port Terminals (TPT) CEO Karl Socikwa, who also sits on the group’s executive committee, has told a group of Johannesburg business people that discussions are under way on the possibility of more than doubling the size of the capex programme over the coming seven years.

The existing project pipeline, which is dominated by initiatives to recapitalise the rail business through the acquisition of new locomotives and wagons, is scheduled to be delivered over a five-year horizon from April 2011 to March 2016.

However, group CEO Brian Molefe has instructed his various divisional CEOs to consider ways of expanding the programme to around R220-billion over a seven-year horizon, to 2018.

Socikwa stresses that discussions are still under way and that any plan to scale up the investment programme will still require approval of the group’s board.

However, Molefe has indicated previously that South Africa’s freight logistics system needs to be materially expanded to position the country to meet its aspirational growth targets as set out in the New Growth Path, which aims to facilitate the creation of five-million new jobs by 2020.

Molefe has also signalled his intention in this regard by recently announcing that investments worth R6.1-billion, initially scheduled for delivery in the latter years of the five-year rolling capex programme, have been pulled forward into the first two years. Projects accelerated include the acquisition of 138 electric and diesel locomotives, the purchase of seven ship-to-shore cranes for the Durban Container Terminal, the purchase of new container handling for Maydon Wharf and Point, also in Durban, and new container handling equipment for the Ngqura container terminal.

In addition, Public Enterprises Minister Malusi Gigaba has stressed that there is a need to invest beyond levels that the Transnet balance sheet can currently accommodate and has suggested that new financing models, including public–private partnerships (PPPs), should be considered.

Molefe has established a PPP desk in a bid to understand the implications of such partnership on Transnet, which would evaluate such projects on a case-by-case basis.

Socikwa reports that Transnet accepts that PPPs will be essential if South Africa’s freight logistics system is to become a stimulant to economic growth and development, rather than a drag.

“Our door is open,” he adds, noting that even TPT, which has to bid to operate new terminal capacity against private operators, is keen to enter into partnerships.

In fact, he indicates that it could bid in partnership with private terminal operators for any new terminal capacity that could arise should the proposed dig-out port be developed at the old Durban International Airport site.

In addition, there was an immediate PPP opportunity to modernise and enlarge the grain handling facilities at the East London harbour. TPT recently invested R20-million into the facility, but believes that a further R250-million is required to match capacity with demand.

Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Macro and Micro News
Cabinet on Wednesday approved the retention of South African Airways (SAA) chairperson Duduzile Myeni and nonexecutive director Yakhe Kwinana, while also approving the appointment of Dr John Tambi and Anthony Dixon as board members at the troubled national carrier....
Professor Raymond Suttner
Researcher and political analyst Professor Raymond Suttner has described South Africa’s youth unemployment crisis as an “emergency-type situation” that can only be sustainably addressed through a frank dialogue between government, business, labour and civil society...
Finance Minister Nhlanhla Nene
Treasury is reluctant to throw good money after bad by over-committing funds to recover state money lost to corruption, Finance Minister Nhlanhla Nene said on Thursday. "I'm not too sure whether as a country we should be focusing on building capacity on collecting...
More
 
 
Latest News
Swedish Ambassador to South Africa Christian Meuwly will next week inaugurate the final roll-out of the new vertical shaft brick kiln (VSBK) at clay brick manufacturer Langkloof Bricks’ facility in Jeffrey’s Bay. The VSBK formed a part of economic, social and...
Hot on the heels of the launch of Rustenburg’s rapid transport system’s brand name and logo last week, a negotiation framework agreement (NFA) has been formally agreed to and signed by the Rustenburg Local Municipality (RLM) and taxi and bus operators affected by the...
The runway at the George Airport, in the Western Cape, has been rehabilitated to improve safety, in terms of run-off and storm water drainage, and the structural capacity of the pavement surface. The scope of work comprised the extension of Runway 11/29, the...
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
Integrated energy and chemical company Sasol has partnered with Unisa Graduate School of Business Leadership (SBL) professor and founder and CEO of PanAvest Partnership Dr Douglas Boateng to publish a series of books on executive supply chain management aimed at...
MORNÉ DU PLESSIS Increased urgency and burgeoning awareness of the importance of these issues are beginning to change political risks and, thus, State responses to environmental concerns
The World Wide Fund for Nature’s (WWF’s) 2014 Living Planet Index (LPI) indicates that there has been a 52% decline in vertebrate species since 1970. The Index tracked the trends of 10 000 discrete populations of over 3000 vertebrate species between 1970 and 2010.
Rwanda has joined a number of East African countries seeking to import electricity from Ethiopia as its demand grows. After it became apparent several generation project it is implementing will not come on stream early enough, now plans to import 400 MW from Ethiopia...
Metrorail’s first new passenger train will arrive in November next year, says Passenger Rail Agency of South Africa (PRASA) CEO Lucky Montana. “Next year we will be able to put our hands around the infrastructure and equipment we have been talking about for so long.”
The Competition Commission has launched an investigation into what it says are “price fixing, market division and collusive tendering in the market for the manufacture and supply of automotive components to original equipment manufacturers” (OEMs, or vehicle...
 
 
 
 
 
 
 
 
 
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