Transnet reveals mega upgrade

Transnet is confident its R300-billion capital expenditure programme is achievable and its plans to enable a shift away from road by expanding rail, port and pipeline infrastructure will now be put into action.

At the launch of its market-demand strategy in Johannesburg this week, Transnet described the projected goals for the seven-year project as “conservative”. The programme aims to meet market demand by 2019.

Brian Molefe, chief executive of the transport and logistics parastatal, told the Mail & Guardian that the biggest challenge was capital deployment and execution risk.

“That keeps me awake at night,” he said. There are several external and internal factors that pose challenges, although Transnet said risks had been identified and mitigating action developed.

The management of mega projects such as the new multiproduct pipeline has come under the scrutiny of Public Enterprises Minister Malusi Gigaba, who in January appointed a panel of experts to probe its cost overruns and time delays. But Molefe said all these findings would only better prepare the organisation to roll out the seven-year programme.
“We consider the pipeline a learning curve,” he said.


Between 2012 and 2019, export coal would increase by 44% and export iron ore would increase by 57%. General-freight business is expected to meet market demand by 2017 and would increase by 113%. Maritime containers would rise by 76%.

Of the R300-billion capital investment, R210-billion would come from Transnet’s own cash flow, Molefe said. The additional R90-billion would largely come from commercial paper and domestic bonds.

Job creation would be another result of the programme. It is expected to create 588 000 job opportunities at its peak and would focus on skills and capacity building.

Transnet’s own staff would increase by 25%, but there would be a larger effect on indirect jobs and an economy-wide impact. There would be an increased intake in schools of excellence and R4.6-billion would be spent on bursaries and grants. The entity would also help 2 000 apprentices to attain skills – more than Transnet would need, Molefe said.

The strategy aimed to position South Africa as an integrated hub into sub-Saharan Africa. Molefe said Africa’s regional integration potential, currently low, would inevitably improve.

Transnet’s Africa strategy initiatives include the export of wagons, locomotives and rail maintenance services. Growth in the Maputo Corridor and increased collaboration, such as a Swaziland rail link, were offered as an example of progress in this direction.

Infrastructural plans in surrounding countries such as Nambia, Botswana and Mozambique were not considered competition, Molefe said. “In fact, they are quite complementary. We can plug into those to promote intra-African trade.”

Subscribe to the M&G for R2 a month

These are unprecedented times, and the role of media to tell and record the story of South Africa as it develops is more important than ever.

The Mail & Guardian is a proud news publisher with roots stretching back 35 years, and we’ve survived right from day one thanks to the support of readers who value fiercely independent journalism that is beholden to no-one. To help us continue for another 35 future years with the same proud values, please consider taking out a subscription.

And for this weekend only, you can become a subscriber by paying just R2 a month for your first three months.

Related stories

Covid-19 regulations cause confusion for sheep shipment

Confusion about who should check a vessel meant to pick up 60 000 sheep has exposed fissures in the Covid-19 regulations

State capture commission granted a 13-month extension

Judge Wendy Hughes says this is the final extension because finality is "owed to the nation"

‘I did not push for Gama at Transnet’ — Zuma

Former president disputes former public enterprises minister Barbara Hogan’s allegation that he interfered in the appointment of the entity’s CEO

Brian Molefe heads to ConCourt to keep Eskom pension payout

The power utility’s former CEO will argue that lower judges were wrong to rule that he is received an unlawful benefit

Molefe did not get approval for massive Transnet locomotive price hike

Brian Molefe did not seek approval when the price for the acquisition of 1 064 locomotives hiked by billions of rands.

Molefe did not get approval for massive Transnet locomotive price hike, inquiry hears

The 1 064 locomotives were meant to upgrade and modernise Transnet's fleet, but the contract has been dogged by allegations of corruption
Advertising

Subscribers only

ANC: ‘We’re operating under conditions of anarchy’

In its latest policy documents, the ANC is self-critical and wants ‘consequence management’, yet it’s letting its members off the hook again

Q&A Sessions: ‘I think I was born way before my...

The chief executive of the Estate Agency Affairs Board and the deputy chair of the SABC board, shares her take on retrenchments at the public broadcaster and reveals why she hates horror movies

More top stories

Exclusive: Top-secret testimonies implicate Rwanda’s president in war crimes

Explosive witness testimony from the International Criminal Tribunal for Rwanda implicates Paul Kagame and the RPF in mass killings before, during and after the 1994 genocide.

Shadow of eviction looms over farm dwellers

In part two of a series on the lives of farm dwellers, Tshepiso Mabula ka Ndongeni finds a community haunted by the scourge of eviction

Editorial: Crocodile tears from the coalface

Pumping limited resources into a project that is predominantly meant to extend dirty coal energy in South Africa is not what local communities and the climate needs.

Klipgat residents left high and dry

Flushing toilets were installed in backyards in the North West, but they can’t be used because the sewage has nowhere to go
Advertising

press releases

Loading latest Press Releases…