Data provided by McGregor BFA
All data is delayed
Loading...
See More

R300bn not enough for infrastructure

May 08 2012 16:56 Sapa

Related Articles

Chabane: Toll decisions will affect future

Gordhan: Worst over for SA economy

Where will the money come from?

Cement and steel monopolies could hike prices

IDC in talks with China over loan

EU eyes €200bn growth plan

 

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.

transnet

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
16 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're Talking About: Small Business

Standard Bank is looking for 12 entrepreneurs to participate in a 10-part TV series. They could win a R1m investment into their dream.
 
 

The ANC's election claims examined - Report

In the run-up to the 7 May election, the ANC says it has a “good story to tell” about its performance over that period. This is the first of two reports evaluating key claims.

 
 

Latest elections multimedia

Watch what happened when we blindfolded Helen Zille and asked her to eat random things
13 days to elections - news you need to know
11 Julius Malema quotes you'll never forget
DA won't get 30% - Zille

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...