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.