PUBLIC ENTERPRISES PORTFOLIO COMMITTEE - PowerPoint PPT Presentation

Loading...

PPT – PUBLIC ENTERPRISES PORTFOLIO COMMITTEE PowerPoint presentation | free to download - id: 6ff6cb-Y2M3M



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

PUBLIC ENTERPRISES PORTFOLIO COMMITTEE

Description:

Title: PowerPoint Presentation Author: PhillipsI Last modified by: user Created Date: 6/24/2003 5:33:26 PM Document presentation format: A4 Paper (210x297 mm) – PowerPoint PPT presentation

Number of Views:22
Avg rating:3.0/5.0
Slides: 40
Provided by: Philli150
Learn more at: http://pmg-assets.s3-website-eu-west-1.amazonaws.com
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: PUBLIC ENTERPRISES PORTFOLIO COMMITTEE


1
PUBLIC ENTERPRISES PORTFOLIO COMMITTEE
BRIEFING ON SOE INFRASTRUCTURE INVESTMENT 25
JUNE 2003
2
Restructuring Proceeds and SOE Debt Trend (cont.)
SOE Foreign Borrowings 1992 to 2002
Ministry of Public Enterprises Date - 4
November, 2015 Page 2
3
Restructuring Proceeds and SOE Debt Trend (cont.)
Surplus of Public Enterprises as of GDP
Ministry of Public Enterprises Date - 4
November, 2015 Page 3
4
Consolidated SOE capital expenditure programmes
SOE Capital Budgets to 2005 (R millions)
Ministry of Public Enterprises Date - 4
November, 2015 Page 4
5
Selected examples of infrastructure projects in
the Defence, Energy, and Transport sectors.
Ministry of Public Enterprises Date - 4
November, 2015 Page 5
6
Energy Sector Eskom (cont.)
Generation Capital Expenditure Budges 2003 to
2007 Rm
Ministry of Public Enterprises Date - 4
November, 2015 Page 6
7
Defence Sector Denel Capital Expenditure for
2003/04
Of the total amount spent on business
infrastructure 47 is for maintaining existing
capacity whilst 43 is investment to increase
capacity
Ministry of Public Enterprises Date - 4
November, 2015 Page 7
8
Energy Sector Eskom (cont.)
Latest Transmission Supply Plan (2003-07)
Dec.2002
Ministry of Public Enterprises Date - 4
November, 2015 Page 8
9
Energy Sector Eskom (cont.)
Eskom Distribution Capital Rolling Plan
Project Categories R000 Direct Customer
Projects 575,190 Strengthening
Projects 449,911 Refurbishment
Projects 730,863 Electrification Projects
560,371 Land and Rights acquisitions
8,978 Rural Development 33,800
EBSST 74,200 Various other
257,334 ASSET UNDER CONSTRUCTION 2,690,648
Ministry of Public Enterprises Date - 4
November, 2015 Page 9
10
Energy Sector Eskom (cont.)
Electrification (Cumulative Number Of Homes
Electrified)
211 628
2.8 million homes electrified
Ministry of Public Enterprises Date - 4
November, 2015 Page 10
11
Energy Sector Eskom (cont.)
Major Schemes in plan
  • North North East Grid schemes
  • Simunye RTS Camden
  • Polokwane Network Strengthening Scheme
  • Steelpoort Strengthening
  • Adis Substation Integration
  • Rustenburg Network Strengthening Scheme
  • Central Grid Schemes
  • Vaal Triangle Strengthening
  • Johannesburg North Strengthening
  • Atlas Bypass and Decommission Project
  • East Grid Schemes
  • Bayside Aluminium Potline Upgrade
  • Hillside Aluminium 3rd Potline Integration
  • Southern Western Grid Schemes
  • Cape Strengthening North of Hydra Scheme
  • Cape Strengthening South of Hydra Scheme
  • Aluminium Smelter at Coega

Ministry of Public Enterprises Date - 4
November, 2015 Page 11
12
Energy Sector Eskom (cont.)
Major capital projects within next 5 to 10 years
  • Platinum and ferrochrome mining expansions within
    northern region
  • Vaalwater 132kV Overlay - R23m
  • UG2 Smelter Line and Substation - R30m
  • Overyssel Line and Substation - R129m
  • Tailings Platinum Mine Expansion - R30m
  • Polokwane Smelter - R38m
  • Styldrift Platinum Mine Expansion - R36m
  • Waterval Platinum Project - R27m
  • Transvaal Ferrochrome Mining - R42m
  • Waterval Smelter Upgrade - R21m

5 year plan incorporates all reasonably foreseen
growth prospects, including platinum basin etc.
Potential projects may materialise in excess of
plan, no feel of the risk at this stage
Ministry of Public Enterprises Date - 4
November, 2015 Page 12
13
(No Transcript)
14
Transport Sector Port Operations
Project Durban Terminals Upgrade
State Owned Enterprises S A PORT OPERATIONS (TRANSNET)
Project Initiated January 2000
Project Finalized / Expected Date of Finalization December 2005
Policies / Legislation created / implemented N/A
Date Cabinet Approval Received/Expected N/A
Proceeds received N/A
Proceeds expected N/A
Advisors appointed N/A
Proejct value R700 MILLION
Restructuring Model Chosen Recapiltalisation
Jobs created / Jobs Lost Only jobs in supplier companies will be created
Project Manager Mr Hamilton Nxumalo
Contact Details 031 308 8310
  • Overview
  • A key part of the ports cargo handling
    infrastructure upgrade programme that aims to
    address capacity problems and to upgrade local
    facilities to global standards. Key features are
  • Existing crane upgrades by conversion of crane
    power to 11KV
  • Fire protection equipment at container gantries
  • Socio-economic impact
  • Employment creation during construction phase and
    improved service to clients

Ministry of Public Enterprises Date - 4
November, 2015 Page 14
15
Transport Sector Port Operations (concluded)
Project Iron Ore Terminal Expansion
State Owned Enterprises S A PORT OPERATIONS (TRANSNET)
Project Initiated January 2000
Project Finalized / Expected Date of Finalization December 2004
Policies / Legislation created / implemented N/A
Date Cabinet Approval Received/Expected N/A
Proceeds received
Proceeds expected N/A
Advisors appointed N/A
Project value R921 million
Restructuring Model Chosen Capital expansion
Jobs created / Jobs Lost Jobs created in supplier companies
Project Manager Mr Hamilton Nxumalo
Contact Details 031 308 8310
  • Overview
  • Construction of expanded bulk handling faclities
    for the Saldanha Bay Iron Ore Terminal. The IOT
    is the dedicated export chanel for iron ore mined
    in the Northern Cape. The expansion is required
    to raise output from 18 million tpa to 29 million
    tpa.
  • Installation and erection of 4.5km new conveyor
    belts
  • Addition of 2 Shiploaders
  • 3 new stacker reclaimers
  • Purchase new tipper
  • Refurbishment of existing equipment
  • Upgrade of existing old equipment
  • Socio-economic impact
  • Support development of Northern Cape mineral
    fields and associated additional mining jobs.
    Increased iron ore exports will be worth R1.6
    billion pa.

Ministry of Public Enterprises Date - 4
November, 2015 Page 15
16
Transport Sector Port Authority
Project Richards Bay Coal Terminal Capacity
Expansion
  • National Port Authority (Transnet)
  • State Owned Enterprises
  • Overview
  • Expansion of Terminal from 72 million tons per
    annum capacity to 82 million tons pa capacity.
  • A further coal export facility is envisage at the
    Dry Bulk Terminal (DBT) in Richards Bay which
    will in its initial stage permit 800,000 tons of
    coal export. This will occur based on
    Environmental Impact Assessment completion
  • N/A MOA close to finalisation
  • Project Initiated
  • Estimated finalisation date 2005-06
  • Project Finalized / Expected Date of Finalization
  • Compliance with Transnet Procurement Policy
    emphasis of BEE component in the exporting of
    coal.
  • Policies / Legislation created / implemented
  • Date Cabinet Approval Received/Expected

N/A
  • Proceeds received

N/A
  • Proceeds expected
  • Private to be appointed by RBCT
  • Advisors appointed
  • The project is done in conjunction between
    Transnet RBCT for the tune of 2,4 billion rands
  • Transnet R1,7 billion RBCT R700 mil
  • Fees Paid (R/Donor Funded)
  • Restructuring Model Chosen

N/A
  • It is anticipated that job creation will arise as
    a result opportunities at mines
  • Jobs created / Jobs Lost
  • Project Manager

Jointly between RBCT Transnet
Ministry of Public Enterprises Date - 4
November, 2015 Page 16
17
(No Transcript)
18
Transport Sector Port Operations
Project Durban 2005
State Owned Enterprises National Ports Authority (Transnet)
Project Initiated January 2000
Project Finalized / Expected Date of Finalization December 2005
Policies / Legislation created / implemented N/A
Date Cabinet Approval Received/Expected N/A
Proceeds received N/A
Proceeds expected N/A
Advisors appointed N/A
Proejct value R900 million
Restructuring Model Chosen Recapiltalisation
Jobs created / Jobs Lost Only jobs in supplier companies will be created
  • Overview
  • A key part of the ports physical infrastructure
    upgrade programme that aims to address capacity
    problems and to upgrade local facilities to
    global standards. Key features are
  • Upgrade of City Terminals in Durban and creation
    of expanded terminal
  • Infrastructure development for Durban Container
    Terminal
  • Coversion of pier 1 for container handling
  • Socio-economic impact
  • Employment creation during construction phase and
    improved service to clients

Ministry of Public Enterprises Date - 4
November, 2015 Page 18
19
Transport Sector Port Authority (cont.)
Project Port of East London Deepening of West
Quay
State Owned Enterprises National Port Authority (Transnet)
Project Initiated March 2001
Project Finalized / Expected Date of Finalization December 2003
Policies / Legislation created / implemented OHSA, COID, NEMA Compliance Transnet Procurement Policy emphasis of BEE component and transfer of skills
Date Cabinet Approval Received/Expected
Proceeds received
Proceeds expected
Advisors appointed Designed by Protekon - Johannesburg
Fees Paid (R/Donor Funded) Dredging Geotechnical - R 1,500 000 Design and Construction - R 10, 853, 000 Total R 12, 353, 000
Restructuring Model Chosen
Jobs created / Jobs Lost ( Estimate) 40-50 local labour Unskilled, semi-skilled and skilled
Project Manager Sibongile Ngumbe Port of East London
Contact Details 043 700 2540 083 496 6569
  • Overview
  • Dredging and deepening of 250m of West Quay berth
    R-Extension to 10.7m consistent depth and the
    stabilization of the quaywall by rock anchors and
    grouting
  • Socio-economic impact
  • Enabling car carriers of deeper draft to call at
    the Port of East London, average 2 vessels per
    month
  • Facilitating and enhancing growth of trade
    especially in the automotive industry, benefits
    realised in port and cargo dues, growth in
    economy as a result of cargo import/export plus
    the multiplier effect as a result of jobs created

Ministry of Public Enterprises Date - 4
November, 2015 Page 19
20
Transport Sector Port Authority (concluded)
Project Construction of Port of Ngqura
  • Overview
  • The construction of the Ngqura Port is
    effectively the key to unlock the potential of
    the Coeg IDZ. Already over 3 million cubic metres
    of soil has been excavated from the future basin.
    Key parts of current work
  • Marine infrastructure (keywalls and excavation of
    turning basin)
  • Sand bypass system
  • Dredging is scheduled to start in June
  • Parallel developments on the land side are
    building the IDZ infrastructure and providing
    bulk infrastructure for the industrial land and
    access roads
  • Socio-economic impact
  • It is expected that during construction phase
    approximately 2000 jobs will be created, while
    the permanent jobs in the port will be fairly
    few, the potential of the IDZ is enormous (but
    cannot be quantified at this stage).

State Owned Enterprises National Ports Authority (Transnet)
Project Initiated N/a
Project Finalized / Expected Date of Finalization Expected finalisation end of 2005
Policies / Legislation created / implemented Compliance with Transnet Board sanction emphasis of BEE component in the building of breakwaters and quaywalls
Date Cabinet Approval Received/Expected N/a
Proceeds received N/a
Proceeds expected N/a
Advisors appointed N/a
Fees Paid (R/Donor Funded) Dredging works of R423 million (BEE R423) Maritime works (Breakwaters quaywalls - R 1,429 billion. Sand bypass works R98,8 million Total R 3,2 billion
Restructuring Model Chosen N/a
Jobs created / Jobs Lost Currenlty 650 people working on marine infrastructure. During the first phase of construction on the land side the estimate employment will rise ot 2000 mostly local labour
Project Manager Kgoadi Malatsi
Contact Details 083 308 9547
Ministry of Public Enterprises Date - 4
November, 2015 Page 20
21
SPOORNET
22
Transport Sector Rail
Project Rolling Stock Capitalisation and
Refurbishment Programme
State Owned Enterprises Spoornet
Project Initiated 2002
Project Finalized / Expected Date of Finalization 2018
Policies / Legislation created / implemented Government Rail Model adopted
Date Cabinet Approval Received/Expected Nov 2001
Proceeds received NA
Proceeds expected NA
Advisors appointed NA
Project Value R 29 billion
Restructuring Model Chosen Re-capitalisation and internal restructuring
Jobs created / Jobs Lost Not quantifiable as knock effect depends on Macro-economic changes
Project Manager Chris Dutton (Chief Engineer)
Contact Details (012) 315 4025
  • Intro
  • Spoornet has a fleet of outdated locomotives and
    wagons. The average age of the existing
    locomotive fleet is 25 Years. The operating cost,
    reliability and service quality of running these
    old locomotives has caused the withdrawal of
    services and the pricing of services beyond the
    carrying capacity of the market.
  • Socio-economic impact
  • The recapitalisation programme will allow more
    efficient locomotives to be used in the rural
    areas(primarily diesel).
  • This will allow the re-vitalisation of the branch
    line network and act as an economic multiplier in
    rural economies.
  • The overall efficiency and quality of rail
    services will improve dramatically, thereby
    driving down real pricing of rail services, and
    also increasing the carrying capacity of the rail
    network. This will result in a shift from road to
    rail (in conjunction with Government policy
    initiatives) that will arrest the current level
    of road degradation and related costs.
  • It is envisaged that R 9 Bil of the forecast R 10
    bil capex on wagons, will be spent in RSA. Less
    than 50 of the R 19 Bil total expenditure on
    locomotives will be spent abroad. The components
    sourced will be those that are not manufactured
    in RSA. The successful suppliers will be required
    to transfer skill over the period to ensure a
    reduced reliance on foreign expertise, and will
    be required to embed their technology in Spoornet
    and develop local support networks.


Ministry of Public Enterprises Date - 4
November, 2015 Page 22
23
Transport Sector Rail (cont.)
Project Fixed Infrastructure Upgrade
State Owned Enterprises Spoornet
Project Initiated 2002
Project Finalized / Expected Date of Finalization 2018
Policies / Legislation created / implemented Government Rail Model Adopted
Date Cabinet Approval Received/Expected Nov 2001
Proceeds received NA
Proceeds expected NA
Advisors appointed NA
Project Value R 13 Bil
Restructuring Model Chosen Re-capitalisation and internal restructuring
Jobs created / Jobs Lost Not quantifiable as knock effect depends on Macro-economic changes
Project Manager Danie Barnard(Chief Engineer)
Contact Details (012) 315 4025
  • Intro
  • The fixed infrastructure plays a significant role
    in the operational efficiencies and carrying
    capacity of the rail network. The spending on
    this item will be spread across all the provinces
    and will be procured locally wherever possible.
  • As can be seen by some of the examples to follow,
    the line by line assessment and the development
    of regional strategies for the Light and low
    density line system, that will be done in
    consultation with provincial and local
    government, business, labour and communities,
    will require that this investment be spent in
    areas all around the country and not merely in
    the big cities and their linkages.
  • Socio-economic impact
  • The procurement of goods and services in the
    upgrade localities will have a knock-on effect in
    those regional and local economies.
  • The raising of the carrying capacities and
    efficiencies of lines will have a downward
    pressure on real pricing in the medium term and
    therefore stimulate local economic development
    and reduce the real cost of logistics faced by
    rural and peri-urban production.
  • This will have the net effect of reducing the
    cost of exporting goods from marginal areas in
    the country, and therefore allow the expansion of
    the basket of goods currently exported.
  • This expenditure is further required to raise the
    safety levels in some areas, support the
    industrial, mining and development strategies of
    the Provincial and Local Governments, support the
    integrated transport strategies at local and
    provincial levels and also raise the levels of
    service delivery to surrounding communities.

Ministry of Public Enterprises Date - 4
November, 2015 Page 23
24
TRANSPORT SECTOR RAIL INFRASTRUCTURE Three
basic elements form the backbone of fixed rail
infrastructure development 1 leasing or
outsourcing of selected unviable or LDL 2 new
line development 3 upgrades of LDLs, HDLs or
lines that were previously classified as
unviable. NB identify lines as part of IDZ,
SDI, provincial authorities development plans,
and link to Eskom projects, agricultural
development and new mining and industrial
activity.
25
Spoornet Rail Network
HDL LDL with no service LDL that are not viable
LDL with repositioning potential
Railway Network classification prior to regional
development strategies being developed
26
Spoornet lines Northcor Capecor Southcor Nata
lcor R.Baycor N.Westcor Eastcor N.Eastcor Salkor S
entracor SouthEastCor Westcor Freestate
Beit Bridge
Messina
Louis Trichardt
Ellisras
Soekmekaar
Thabazimbi
Pietersburg
Drummondlea
Vaalwater
Chroomvallei
Phalaborwa
Zebediela
Naboomspruit
Hoedspruit
Middelwit
Nylstroom
Steelpoort
Northam
Graskop
Marble Hall
Roossenekal
Rustenburg
Plaston
Cullinan
Komatipoort
Belfast
Rayton
Witbank
Mafikeng
Machadodorp
Pretoria
Lichtenburg
Ogies
O/fontein
Krugersdorp
Sentrarand
Baberton
Welgedag
B/plaas
Coligny
Hawerklip
Jburg
Vermaas
Breyten
Welverdiend
Bethal
Lothair
Potchestroom
Ottosdal
Klerksdorp
Orkney
Wolwehoek
Standerton
Hotazel
Schweizer-Reneke
Vierfontein
Makwassie
Pudimoe
Charlestown
Erts
Golela
Vrede
Westleigh
Newcastle
Ancona
Kroonstad
Utrecht
Sishen
Hlobane
Warden
Warrenton
Arlington
Naroegas
Vryheid
Nakop
Manganore
Whites
Glen H
Harrismith
Virginia
Bultfontein
Upington
Bethlehem
Postmasburg
Palingpan
Glencoe
Theunisen
Ladysmith
Kimberley
Marquard
Winburg
Kakamas
Bergville
Empangeni
Nkwalini
Douglas
Eshowe
Bloemfontein
Kranskop
Richards Bay
Moorleigh
Ladybrand
Sannaspos
Greytown
Koffiefontein
Maseru
Belmont
Howick
Prieska
Stanger
Hilton
Copperton
Underberg
Richmond
Donnybrook
Mid Ilovo
Springfontein
Durban
Mandonela
Matatiele
Bethulie
Franklin
Kelso
De Aar
Kokstad
Aliwal North
Harding
Simuma
Sakrivier
Port Shepstone
Bitterfontein
Dreunberg
Barkley East
Jamestown
Noupoort
Maclear
Kootjieskolk
Calvinia
Rosmead
Schoombee
Hutchinson
Umtata
Hofmeyer
Queenstown
Tarkastad
Qamata
Beaufort West
Klawer
Seymour
Somerset East
Amabele
Cookhouse
Blaney
Klipplaat
Fort Beaufort
Porterville
Saldanha
East London
Prins Alfred Hamlet
Touwsrivier
Kirkwood
Calitzdorp
Ladysmith
Atlantis
Alexandria
Worcester
Uitenhage
Oudtshoorn
Patensie
Port Alfred
George
Avontuur
Franschhoek
Port Elizabeth
Riversdale
Cape Town
Stellenbosch
Knysna
Mosselbaai
Protem
Strand
Simonstad
Bredasdorp
27
Transport Sector Rail (cont.) North West
Province
Project Hercules - Magaliesberg Line Tourism
Project
State Owned Enterprises Spoornet
Project Initiated 2002
Project Finalized / Expected Date of Finalization 2004
Policies / Legislation created / implemented North West Tourism Strategy
Date Cabinet Approval Received/Expected North West Province and Local Government
Proceeds received
Proceeds expected R 180 000
Advisors appointed Line Lease
Project Value Not quantifiable as yet
Restructuring Model Chosen Public-Public Partnership Nominal Rental Agreement
Jobs created / Jobs Lost Tourism and Rail jobs created cannot be quantified yet
Project Manager Charles Chinyavanhu
Contact Details 011 773 2780
  • Intro
  • Spoornet is leasing the Hercules Magaliesberg
    line to the North West Parks and Tourism Board
    for a nominal amount of R 1000,00 per month.
    This is to allow the NWPTB to run a tourist rail
    service that will ensure the ingress of tourism
    spending into the area.
  • Socio-economic impact
  • SMME opportunities for integrating their products
    or services into the rail service offering is in
    the process of being finalised.
  • The rail service itself will create certain jobs
    in its operation and maintenance.
  • This service constitutes an integral part of the
    economic development strategy in the province.

Ministry of Public Enterprises Date - 4
November, 2015 Page 27
28
Transport Sector Rail (cont.) North West
Province
Project New Ferro-Chrome Line (Brits)
State Owned Enterprises Spoornet
Project Initiated 2003
Project Finalized / Expected Date of Finalization 2005
Policies / Legislation created / implemented
Date Cabinet Approval Received/Expected
Proceeds received NA
Proceeds expected NA
Advisors appointed
Project Value R 30 mil
Restructuring Model Chosen
Jobs created / Jobs Lost 100 short term construction jobs Un-quantified mining jobs
Project Manager Danie Barnard(Chief Engineer)
Contact Details 012 315 4025
  • Intro
  • This is line is being built to allow the export
    of ferro-chrome from Brits to Richards Bay.
  • Socio-economic impact
  • The construction of this line will ensure that
    the mining output is moved on the railway line
    and thereby prevent the degradation of the road
    network in the area. The road maintenance savings
    are significant.
  • The construction of this line in support of the
    mining development and beneficiation will have
    significant multiplier effects in the region and
    locality.
  • The total value of product moved to export would
    be R 2.7 Bil per annum.
  • The total amount of inbound supplies and process
    elements would be plus or minus 135 Tons per
    annum.

Ministry of Public Enterprises Date - 4
November, 2015 Page 28
29
Transport Sector Rail (cont.) Eastern Cape
Province
Project Umtata Amabele Line Upgrade
  • Intro
  • The area is suffering an economic decline.
    Several factories and facilities have closed. The
    Eastern Cape Government, in conjunction with
    Spoornet is upgrading the line to act as an
    anchor infrastructure corridor. This will raise
    the carrying capacity of the line and thereby
    raise the ability to move goods from the inland
    areas to export facilities in East London.
  • An IDZ has been approved at the port and rail
    facilities in East London. This line will be the
    prime connection between the IDZ and the inland
    areas.
  • This line is critical to preventing environmental
    and infrastructural degradation, as the impact of
    all the traffic on road would have major
    environmental and road maintenance cost
    implications.
  • This project has reversed the non-viable status
    of the line and represents the kind of outcome of
    the line by line analysis and regional
    consultative process that would be a net
    contributor to a regionally distributed economic
    value add infrastructure investment programme.
  • Socio-economic impact
  • The traffic on the railway line has decreased
    from 19 000 tons in 1997 to 7 000 tons. This
    traffic was mainly coal and wood poles.
  • The upgrading of the line will support the
    planned industrial, mining and agricultural
    development in the area and is planned to raise
    the maximum traffic to 1.5 Million tons a year
    once the standing timber has matured and the
    mining production has come on line.
  • The commodity profile on the line will change to
    mainly timber to chipping facilities in KZN,
    agricultural and mining products.

State Owned Enterprises Spoornet
Project Initiated 2002
Project Finalized / Expected Date of Finalization 2005
Policies / Legislation created / implemented Eastern Cape development support initiatives
Date Cabinet Approval Received/Expected Eastern Cape Province Approval
Proceeds received NA
Proceeds expected NA
Advisors appointed NA
Project Value R 108 Mil
Restructuring Model Chosen Public-Public Partnership
Jobs created / Jobs Lost Not quantified as yet
Project Manager Steve Batyi
Contact Details 011 773 2780
Ministry of Public Enterprises Date - 4
November, 2015 Page 29
30
Transport Sector Rail (cont.) Eastern Cape
Province
Project Coega Extension
State Owned Enterprises Spoornet
Project Initiated 2002
Project Finalized / Expected Date of Finalization 2010
Policies / Legislation created / implemented Eastern Cape development support initiatives
Date Cabinet Approval Received/Expected Eastern Cape Province Approval
Proceeds received NA
Proceeds expected NA
Advisors appointed NA
Project Value R 500 Mil
Restructuring Model Chosen New Line
Jobs created / Jobs Lost 300 construction period jobs
Project Manager Danie Barnard
Contact Details 012 315 4025
  • Intro
  • This line is intended to link up the Coega
    development with the Port Elizabeth rail network.
  • Socio-economic impact
  • The operation of this line will raise the
    financial viability of the Coega Port and the
    throughput on the IDZ.
  • This will directly impact on the employment
    opportunities in the area.
  • This line will reduce the costs of manufacturing
    and export from the Coega IDZ.

Ministry of Public Enterprises Date - 4
November, 2015 Page 30
31
Transport Sector Rail (cont.) Northern Cape
Province
Project OREX Upgrade
State Owned Enterprises Spoornet
Project Initiated 2002
Project Finalized / Expected Date of Finalization 2007
Policies / Legislation created / implemented
Date Cabinet Approval Received/Expected Government Rail Model
Proceeds received NA
Proceeds expected NA
Advisors appointed
Project Value R 160 Mil
Restructuring Model Chosen Re-capitalisation and internal restructuring
Jobs created / Jobs Lost 250 construction jobs 100 permanent jobs
Project Manager Steve Batyi (Spoornet)
Contact Details 011 773 2780
  • Intro
  • This line, that carries iron ore from Sishen to
    the Saldanha Iron Ore Terminal, is being upgraded
    from an annual capacity of 26 Million tons to 38
    Million Tons.
  • Socio-economic impact
  • This raising in capacity will enable the mining
    industry in the province to raise production
    during favourable market periods and therefore
    extract maximum possible revenue from their
    operations.
  • This expansion in production will require that
    additional mining jobs be created.
  • The value of the additional iron ore that can be
    exported as a result of this expansion is R 1,6
    Bil per annum

Ministry of Public Enterprises Date - 4
November, 2015 Page 31
32
Transport Sector Rail (cont.) Northern Cape
Province
Project Northern Cape GFB Line Upgrade
State Owned Enterprises Spoornet
Project Initiated 2002
Project Finalized / Expected Date of Finalization 2008
Policies / Legislation created / implemented Government Rail Model
Date Cabinet Approval Received/Expected November 2001
Proceeds received NA
Proceeds expected NA
Advisors appointed
Project Value R 400 Mil
Restructuring Model Chosen Re-capitalisation and internal restructuring
Jobs created / Jobs Lost 300 construction jobs
Project Manager Danie Barnard
Contact Details 012 315 4025
  • Intro
  • This is a general upgrade of the rail network in
    the Northern Cape.
  • Socio-economic impact
  • The impact of this upgrade will primarily be felt
    by the mining industry and related industries.
  • This would raise the carrying capacity of the
    network in the province to provide for expansion
    in mineral production.
  • The upgrading of the line will support the
    planned mining and industrial beneficiation in
    the Northern Cape.
  • The line upgrades will be prioritised in the
    consultative regional process to ensure maximum
    possible support to Provincial and Local
    Government development and transport strategies,
    as well as support to private sector initiatives
    with job creation or job loss reversal
    possibilities.
  • The upgrade will also raise the rail safety
    standards.

Ministry of Public Enterprises Date - 4
November, 2015 Page 32
33
Transport Sector Rail (cont.) Northern Cape
Province
Project Belmont Douglas Upgrade
  • Intro
  • Upgrading the line to carry additional maize and
    industrial products resulting from economic
    development initiatives by the Province.
  • Socio-economic impact
  • The upgrade of the line will enable the Northern
    Cape farmers to deliver maize to all corners of
    the country.
  • The line will open up tourism opportunities for
    SMMEs in the Northern Cape Province.
  • The impact of all the additional traffic on road
    that results from production expansion, would
    have major environmental and road maintenance
    cost implications
  • A Provincial irrigation scheme is established at
    the confluence of the Vaal and the Orange rivers.
    This scheme ensures a flattened traffic flow over
    all seasons. For the past few years, production
    in the area has been growing at the rate of 30
    per annum.

State Owned Enterprises Spoornet
Project Initiated 200
Project Finalized / Expected Date of Finalization 2004
Policies / Legislation created / implemented Northern Cape development support initiatives
Date Cabinet Approval Received/Expected Northern Cape Province Approval
Proceeds received NA
Proceeds expected NA
Advisors appointed
Project Value R 20 Mil
Restructuring Model Chosen Public-Public Partnership
Jobs created / Jobs Lost 120 Construction Jobs Permanent jobs cannot be quantified
Project Manager Charles Chinyavanhu
Contact Details 011 773 2780
Ministry of Public Enterprises Date - 4
November, 2015 Page 33
34
Transport Sector Rail (cont.) KZN Province
Project CoalLink Upgrade
State Owned Enterprises Spoornet
Project Initiated 2003
Project Finalized / Expected Date of Finalization 2018
Policies / Legislation created / implemented Government Rail Model Adopted
Date Cabinet Approval Received/Expected November 2001
Proceeds received NA
Proceeds expected NA
Advisors appointed NA
Project Value R 1.8 Bil
Restructuring Model Chosen Capitalisation and internal restructuring
Jobs created / Jobs Lost 500 construction jobs 200 permanent jobs will be created
Project Manager Danie Barnard
Contact Details 012 315 4025
  • Intro
  • This project will raise the carrying capacity of
    the line from 64 Mil tons to 82 Mil tons per
    annum.
  • Socio-economic impact
  • The value of the additional traffic exported on
    this line is R 3bil per annum.
  • The expansion of the line capacity will ensure
    that the access of BEE Coal Miners to export
    facilities will be accommodated at similar
    operating and costing as that faced by RBCT
    owners. This is dependant on the upstream
    consolidation facilities currently under
    discussion, being in place.

Ministry of Public Enterprises Date - 4
November, 2015 Page 34
35
Transport Sector Rail (cont.) KZN Province
Project GFB Line and Facilities Upgrade
State Owned Enterprises Spoornet
Project Initiated 2002
Project Finalized / Expected Date of Finalization 2008
Policies / Legislation created / implemented Government Rail Model
Date Cabinet Approval Received/Expected November 2001
Proceeds received NA
Proceeds expected NA
Advisors appointed
Project Value R 680 Mil
Restructuring Model Chosen Capitalisation and internal restructuring
Jobs created / Jobs Lost 200 construction jobs
Project Manager Steve Batyi (Spoornet)
Contact Details 011 773 2780
  • Intro
  • This project is the upgrading of all fixed
    facilities in KZN.
  • Socio-economic impact
  • The raised levels of efficiency resulting from
    the reduced downtime experienced with outdated
    fixed infrastructure will put downward pressure
    on real pricing of rail services and raise the
    carrying capacity of the network.
  • The lowered cost faced by manufacturers will
    raise their competitive positions in the
    provinces export industries.
  • The upgrade is also intended to add into the
    initiatives of the Province, such as the Dube
    Tradeport.

Ministry of Public Enterprises Date - 4
November, 2015 Page 35
36
Transport Sector Rail (cont.) Mpumalanga
Province
Project Ressano Garcia Upgrade
State Owned Enterprises Spoornet
Project Initiated 2003
Project Finalized / Expected Date of Finalization 2018
Policies / Legislation created / implemented
Date Cabinet Approval Received/Expected
Proceeds received NA
Proceeds expected NA
Advisors appointed NA
Project Value R 90 Mil
Restructuring Model Chosen Public Public Partnership with Mozambican Rail
Jobs created / Jobs Lost 500 construction jobs
Project Manager Steve Batyi (Spoornet)
Contact Details 011 773 2780
  • Intro
  • This is the capex that is required to upgrade the
    line for the concession agreement that has been
    concluded between Spoornet and CFM(the
    Mozamambican Railway Utility).
  • Socio-economic impact
  • This upgrade will raise the traffic through the
    Province.
  • This upgrade will raise the access to the Port of
    Maputo by SMMEs and developing miners in the
    Province.

Ministry of Public Enterprises Date - 4
November, 2015 Page 36
37
Transport Sector Rail (cont.) Limpopo Province
Project Fixed Infrastructure Upgrade
State Owned Enterprises Spoornet
Project Initiated 2002
Project Finalized / Expected Date of Finalization 2006
Policies / Legislation created / implemented Government Rail Model
Date Cabinet Approval Received/Expected November 2001
Proceeds received NA
Proceeds expected NA
Advisors appointed
Project Value R 56 Mil
Restructuring Model Chosen Capitalisation and internal restructuring
Jobs created / Jobs Lost 200 construction jobs
Project Manager Danie Barnard
Contact Details 012 315 4025
  • Intro
  • This project is the upgrading of all fixed
    infrastructure in Limpopo Province.
  • Socio-economic impact
  • The high rate of rail accidents will be curtailed
    by the significant revamping of the signaling
    system, thereby reducing the number of temporary
    line closures and the resultant cost of post
    accident rehabilitation.
  • The raised levels of efficiency resulting from
    the reduced downtime experienced with the
    accidents, will put downward pressure on real
    pricing of rail services and raise the carrying
    capacity of the network.
  • The lowered cost faced by mining and industry
    will raise their competitive positions in the
    provinces export industries.

Ministry of Public Enterprises Date - 4
November, 2015 Page 37
38
Transport Sector Rail (cont.) Free State
Province
Project Kroonstad Ladysmith Line and Maseru
Container Terminal Upgrade
State Owned Enterprises Spoornet
Project Initiated 2003
Project Finalized / Expected Date of Finalization 2006
Policies / Legislation created / implemented Government Rail Model
Date Cabinet Approval Received/Expected November 2001
Proceeds received NA
Proceeds expected NA
Advisors appointed NA
Project Value R 44 Mil
Restructuring Model Chosen Capitalisation and internal restructuring
Jobs created / Jobs Lost 200 construction jobs
Project Manager Steve Batyi (Spoornet)
Contact Details 011 773 2780
  • Intro
  • This project is the upgrading of the line to
    ensure an export corridor for the Vereeniging/Van
    der Bijl/Sasolburg Industrial complex.
  • This project includes the upgrade of the Maseru
    Container Terminal.
  • Socio-economic impact
  • This line will ensure that the industrial
    manufacturers have ready access to the mainline
    to the Durban Harbour.
  • It will further raise the access of manufacturers
    in Maseru to export markets.
  • This line also provides an alternative route for
    the export of agricultural products from the Free
    State.

Ministry of Public Enterprises Date - 4
November, 2015 Page 38
39
Transport Sector Rail (cont.) Western Cape
Project GFB Line and Facilities Upgrade
State Owned Enterprises Spoornet
Project Initiated 2003
Project Finalized / Expected Date of Finalization 2007
Policies / Legislation created / implemented Government Rail Model
Date Cabinet Approval Received/Expected November 2001
Proceeds received NA
Proceeds expected NA
Advisors appointed
Project Value R 130 Mil
Restructuring Model Chosen Capitalisation and internal restructuring
Jobs created / Jobs Lost 100 construction jobs
Project Manager Steve Batyi (Spoornet)
Contact Details 011 773 2780
  • Intro
  • This project is the upgrading of facilities in
    the Western Cape, with a special emphasis on the
    signaling upgrade to reduce the possibility of
    accidents, such as that which was recently
    experienced.
  • Socio-economic impact
  • This will raise the system efficiency in the
    Province and ensure that the level of incidents
    and accidents are reduced, thereby increasing the
    capacity on the line and raising the level of
    safety of the interlink between passenger and
    freight services.

Ministry of Public Enterprises Date - 4
November, 2015 Page 39
About PowerShow.com