Share

R300bn not enough for infrastructure

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.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
19.02
-0.6%
Rand - Pound
24.01
-0.5%
Rand - Euro
20.53
-0.3%
Rand - Aus dollar
12.35
+0.0%
Rand - Yen
0.13
-0.6%
Platinum
899.20
+0.3%
Palladium
999.25
-0.3%
Gold
2,213.81
+0.9%
Silver
24.60
-0.2%
Brent Crude
86.09
-0.2%
Top 40
68,080
+0.6%
All Share
74,278
+0.5%
Resource 10
56,967
+2.4%
Industrial 25
103,572
+0.3%
Financial 15
16,456
-0.4%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders