Fin24

R300bn not enough for infrastructure

2012-05-08 16:56

Parliament - The R300bn allocated to Transnet for its infrastructure programme "is not enough", MPs heard on Tuesday.

The cost of building a second dugout port in Durban and inland terminal hub expansions had to be taken into account, Transnet's acting chief financial officer Anoj Singh told the portfolio committee on public enterprises.

"It is not enough. Definitely, it is not enough. We have identified the DIA [Durban International Airport] site. It is anything northwards of R50bn to establish the second dugout port. That is not in the current plan."

Inland terminal hubs expansions were "in the region of R10bn".

Transnet had created a structure to look at private sector participation.

"We will require this type of private sector funding to ensure we keep pace with the demands of the economy," he said.

There was a need to contain costs, but the parastatal had to ensure projects were delivered on schedule. He said there would be cost over-runs, especially as this was a "mega project".

"If you look at the last 100 years. If you look at the roll out of mega projects, history tells you that you will have 30- to 40% capital over-run on these projects."

Transnet said it would be able handle 350 million tons a year of freight, a 75% increase on its current rail capacity of about 200 million tons, once the project was complete.

The spending programme was expected to create 588 000 jobs.

Comments
  • George - 2012-05-08 17:38

    Yes "mega-project" accompanied by "mega-corruption" hence the need for overruns. Transnet, avoid the SCAMRAL syndrome. The Hawks are watching you. Maybe Ali is on his way to join you, eh?

      koos.vandermerwe.92 - 2012-05-09 03:48

      Break the project up in small projects. Then it can be handled in a accurate way. The drawback is that less can be stolen.

  • David - 2012-05-08 17:47

    Of course its not enough-we need billions for bribes,tendepreneurs,overseas travel,luxury entertainment,huge bonusses and then money for plain ordinary theft. Viva the taxpayer,VIVA!!

      DJPJVS - 2012-05-08 17:50

      I was going to comment pretty much the same.

  • marina.poniatowska - 2012-05-08 17:50

    R300bn is just enough for the bribes and all the tenders. what about the funds to do the actual work?

      Rob - 2012-05-09 07:12

      Marina, didnt you read what Anoj Singh said R300 bn is not enough for the bribes and tenders, they need more. Look what happened with the Gautrain. If there is anything that needs to be done here the corruption cost outweighs the actual cost.

  • Dooie - 2012-05-08 17:52

    Guess they are going to take more money on e-toll then.

  • braamc - 2012-05-08 18:13

    Comes from no planning and bad BEE management. Useless!

      En - 2012-05-08 20:55

      Then you clearly aren't following the history of Transnet. The new CEO has turned the company around dramatically in recent months. I mean the simple fact that vehicle manufacturers inland are now considering transporting their cars by rail to the coast...something which would have been unheard of a few years ago. Stop being a negative sod.

      braamc - 2012-05-08 21:54

      @En. Dude, are you blind, have you seen the state of public transport for one, enjoy your comment the new CEO has turned the company around dramatically in recent months - what about the past 20 years? Enjoy your non existent public transport. Another example Eskom.

      En - 2012-05-09 10:51

      Um...so lets say you start a new job next week. Are you liable for what has happened in that company for the past 20 years? Please man. Like I said THE NEW CEO....I never said Transnet has been performing wonders all along, I said the company is now turning the corner. You can ignore what I said about rail to coast, ignore the new port in the Eastern Cape, ignore the fact that Transnet Rail Engineering is now producing around 2 locomotives a day, ignore the link to this article http://www.businesslive.co.za/southafrica/sa_companies/2012/04/07/transnet-freight-rail-back-on-track Ignore the good, focus on the bad. It's all up to you bud.

  • mholthuysen - 2012-05-08 18:13

    Of course it is not enough as half if not most of it will disappear for bribes and corruption..

  • John - 2012-05-08 18:16

    Are we being set up for for a 30-40% theft already?

  • arnold.niemand - 2012-05-08 19:46

    Clearly not enough if palm greasing is to be included.All projects need professional project management with open book transparancy or its "business as usual" Africa style.

  • koos.vandermerwe.92 - 2012-05-09 03:47

    "We will require this type of private sector funding to ensure we keep pace with the demands at the trough" would have being more accurate. There was a need to contain costs as we have a infinite supply of taxpayers money.

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