PUBLIC ENTERPRISES PORTFOLIO COMMITTEE BRIEFING ON SOE INFRASTRUCTURE INVESTMENT 25 JUNE 2003.

PUBLIC ENTERPRISES PORTFOLIO COMMITTEE

BRIEFING ON SOE INFRASTRUCTURE INVESTMENT

25 JUNE 2003

Ministry of Public Enterprises Date - April 20, 2023

Restructuring Proceeds and SOE Debt Trend (cont.)

10.7 10.510.8

9.7

8.9

11.1

9.39.7

8.17.8

8.3

4.7 4.8

46.0%

42.3%40.2%

35.8%

29.9%31.4%

27.0%24.7%

21.8%20.0%

22.5%

15.4% 14.9%

0%

10%

20%

30%

40%

50%

60%

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Year

Perc

en

tag

e

0

2

4

6

8

10

12

US

$ M

illio

ns

SOE External Debt SOE borrowings as % of International Debt

SOE Foreign Borrowings 1992 to 2002


-3.33 -4.41-1.70 -2.45

-0.812.16

-2.22

1.674.39

2.85 2.44

-15

-10

-5

0

5

10

15

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Restructuring Proceeds and SOE Debt Trend (cont.)

Surplus of Public Enterprises as % of GDP


Consolidated SOE capital expenditure programmes

SOE 2002 2003 2004 2005

Transnet 9,033 12,630 7,116 6,644

Eskom 5,641 9,447 12,191 9,334

Denel 234.3 246.3 234.2 170.8

SOE Capital Budgets to 2005 (R millions)


Selected examples of

infrastructure projects in the

Defence, Energy, and Transport

sectors.


Energy Sector – Eskom (cont.)

Generation Capital Expenditure Budges 2003 to 2007 R’m

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2,200

2,400

2,600

2003 2004 2005 2006 2007

Avail Build Cost Eff Envir Life Legal Reliab Safety Doc Other Capacity


Defence Sector – Denel Capital Expenditure for 2003/04

Division 2002/03 forecast

2004/04 budgetOrdnance 118.7 109.3

Aerospace 97.6 126.3

Commercial & IT 31 9.9

Denel Group total 248.8 251.4

Percentage of sales 5 6

Of the total amount spent on Of the total amount spent on business business infrastructure 47% is for maintaining existinginfrastructure 47% is for maintaining existing capacity whilst 43% is investment to increase capacitycapacity whilst 43% is investment to increase capacity



Latest Transmission Supply Plan (2003-07) Dec.2002

Categories 2002 2003 2004 2005 2006 2007

Work Under Construction (WUC) 480 2152 4388 1167 964 420

Capital Spares 35 15 15 15 15 15

Production Equip 30 23 21 25 24 20

Totals 545 2190 4424 1207 1003 455



Eskom Distribution Capital Rolling Plan

Project Categories R’000

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



Electrification (Cumulative Number Of Homes Electrified)

0

300,000

600,000

900,000

1,200,000

1,500,000

1,800,000

2,100,000

2,400,000

2,700,000

3,000,000

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

2.8 million homes electrifi

ed211 628



Major Schemes in plan

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

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



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

94/95 95/96 96/97 97/98 99/00 2001/2002 2003/2004Durban 112.8 243 216.8 83 9.98

Cape Town 76 68.9 31.5Richards Bay 259.4 222.6 663.2Saldanha Bay 219.5 83.9East London 112 12

Port Elizabeth 59.8

Total 188.8 850.6 439.4 861.6 112 9.98 12

MAJOR PROJECTS - SA PORTS (NOT TOTALS!)


Transport Sector – Port Operations

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

Project – Durban Terminals Upgrade•Overview

•A key part of the port’s 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


State Owned Enterprises S A PORT OPERATIONS (TRANSNET)



December 2004


N/A


N/A

Proceeds received



Project value R921 million

Restructuring Model Chosen Capital expansion

Jobs created / Jobs Lost Jobs created in supplier companies

Project Manager Mr Hamilton Nxumalo


Transport Sector – Port Operations (concluded)

Project – Iron Ore Terminal Expansion

• 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.


• 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

Project – Richards Bay Coal Terminal Capacity Expansion

•It is anticipated that job creation will arise as a result opportunities at mines

•Jobs created / Jobs Lost

•Project Manager

•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

•National Port Authority (Transnet)•State Owned Enterprises

•Private to be appointed by RBCT•Advisors appointed

•Proceeds expected

•Proceeds received

•Date Cabinet Approval Received/Expected

•Compliance with Transnet Procurement Policy – emphasis of BEE component in the exporting of coal.

•Policies / Legislation created / implemented

•Estimated finalisation date 2005-06 •Project Finalized / Expected Date of Finalization

•N/A MOA close to finalisation•Project Initiated

Jointly between RBCT & Transnet

N/A

N/A

N/A

Transport Sector – Port Authority


Transport Sector – Port Operations


National Ports Authority (Transnet)



December 2005


N/A


N/A

Proceeds received N/A



Proejct value R900 million


Recapiltalisation


Only jobs in supplier companies will be created

Project – Durban 2005•Overview

•A key part of the port’s 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


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


December 2003


OHSA, COID, NEMA Compliance; Transnet Procurement Policy – emphasis of BEE component and transfer of skills


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


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


Project – Construction of Port of Ngqura

Transport Sector – Port Authority (concluded)

•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).

•


National Ports Authority (Transnet)

Project Initiated N/a


Expected finalisation end of 2005


Compliance with Transnet Board sanction – emphasis of BEE component in the building of breakwaters and quaywalls


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


N/a


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


NET SURPLUS/(SHORTFALL)

-600

-400

-200

0

200

400

600

800

1000

1997/98 1998/99 1999/00 2000/2001 2001/2002

SPOORNET


State Owned Enterprises Spoornet

Project Initiated 2002


2018


Government Rail Model adopted


Nov 2001

Proceeds received NA

Proceeds expected NA

Advisors appointed NA

Project Value R 29 billion


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

Transport Sector – Rail

Project – Rolling Stock Capitalisation and Refurbishment Programme• 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.


Project – Fixed Infrastructure UpgradeState Owned Enterprises Spoornet



2018


Government Rail Model Adopted


Nov 2001




Project Value R 13 Bil



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

Transport Sector – Rail (cont.)

• 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.

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 LDL’s, HDL’s 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.

Spoornet Rail Network

HDL

LDL with noservice

LDL that arenot viable

LDL with

repositioning potential

CAPE TOWN

BETHLE

HEM

KAAPMUIDEN

NE

LSP

RU

IT

BE

LLE

VIL

LE

KOMATIPOORT

MESSINA

GROENBULT

PIETERSBURGPHALABORWA

HOEDSPRUIT

GOLELA

RICHARDS BAY

DURBAN

PMB

MAFEKING

PORT ELIZABETH

EAST LONDON

NOUPOORT

DE AAR

MOSSEL BAY

WORCESTER

SALDANHA

BLOEMFONTEIN

KIMBERLEY

VEERTIENSTROME

KLERKSDORP

KROONSTAD

PRETORIA

RUSTENBURG WIT

BA

NK

POST

MAS

BUR

G

KRUGERSDORPJOHANNESBURG

ISO

OGIES

LADYSMITH

VRYHEID

GLENCOE

NEWCASTLE

ERMELO

Railway Network classification prior to regional development strategies being developed

Touwsrivier

Mid Ilovo

Plaston

Kelso

Eshowe

Utrecht

Hawerklip

NaboomspruitMiddelwit

Vierfontein

Sishen

Saldanha

Cape Town

East London

Port Elizabeth

Mosselbaai

Bredasdorp

ProtemStrandSimonstad

StellenboschFranschhoek

Bitterfontein

Porterville

Atlantis

Prins Alfred Hamlet

RiversdaleKnysna

Calitzdorp

George

Ladysmith

AvontuurPatensie

Klipplaat

Oudtshoorn

Rosmead

Kirkwood

AlexandriaPort Alfred

CookhouseSomerset East

Noupoort

De Aar

Prieska

Upington

Kakamas

Naroegas

Worcester

Sakrivier

CalviniaHutchinson

Kootjieskolk

Beaufort West

Belmont

Douglas

Hotazel

Warrenton

Pudimoe Makwassie

Mafikeng

Ottosdal

Vermaas

Schweizer-Reneke

KlerksdorpOrkney

Coligny

BultfonteinWhites

Westleigh

Bloemfontein

Aliwal North

Sannaspos

Dreunberg

Springfontein

Koffiefontein

HofmeyerSchoombee

JamestownBarkley East

Maclear

Tarkastad QamataQueenstown

Blaney

Bethulie

Seymour

Umtata

FortBeaufort

Amabele

Maseru

Marquard

Ladybrand

Bethlehem

Wolwehoek

Lichtenburg

Warden

Harrismith

Bergville

Kokstad

Matatiele

HardingPort Shepstone

Durban

Kranskop

RichmondUnderberg

Stanger

NkwaliniRichards Bay

VryheidHlobane

Moorleigh

Ladysmith

Roossenekal

SteelpoortGraskop

MachadodorpBelfast

Lothair

Komatipoort

Baberton

Phalaborwa

Messina

Louis Trichardt

Soekmekaar

ZebedielaVaalwater

Nylstroom

J’burg

PretoriaO/fontein

Ellisras

Northam

CharlestownVrede

Potchestroom

Empangeni

Donnybrook

Greytown

Franklin

Kimberley

Marble Hall

Standerton

Bethal

B/plaas

Simuma

Mandonela

Winburg

Theunisen

ChroomvalleiDrummondlea

VirginiaGlen H

HiltonCopperton

CullinanRayton

Uitenhage

Klawer

Thabazimbi Pietersburg

Spoornet lines

NorthcorCapecorSouthcorNatalcorR.BaycorN.WestcorEastcorN.EastcorSalkorSentracorSouthEastCorWestcorFreestate

Beit Bridge

Howick

Nakop

Postmasburg

Erts

Manganore

Palingpan

Rustenburg

Hoedspruit

Glencoe

Newcastle

Arlington

WitbankOgies

Breyten

Krugersdorp

Welverdiend

SentrarandWelgedag

KroonstadGolelaAncona


Project – Hercules - Magaliesberg Line Tourism ProjectState Owned Enterprises Spoornet



2004


North West Tourism Strategy


North West Province and Local Government

Proceeds received

Proceeds expected R 180 000

Advisors appointed Line Lease

Project Value Not quantifiable as yet


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.

Transport Sector – Rail (cont.) – North West Province


Project – New Ferro-Chrome Line (Brits)State Owned Enterprises Spoornet



2005





Advisors appointed

Project Value R 30 mil


Jobs created / Jobs Lost 100 short term construction jobs Un-quantified mining jobs

Project Manager Danie Barnard(Chief Engineer)


• 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.

Transport Sector – Rail (cont.) – North West Province


Project – Umtata – Amabele Line UpgradeState Owned Enterprises Spoornet



2005


Eastern Cape development support initiatives


Eastern Cape Province Approval




Project Value R 108 Mil


Public-Public Partnership

Jobs created / Jobs Lost Not quantified as yet

Project Manager Steve Batyi


• 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.

Transport Sector – Rail (cont.) – Eastern Cape Province


Project – Coega ExtensionState Owned Enterprises Spoornet



2010


Eastern Cape development support initiatives


Eastern Cape Province Approval






New Line

Jobs created / Jobs Lost 300 construction period jobs

Project Manager Danie Barnard


Transport Sector – Rail (cont.) – Eastern Cape Province

• 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.


Project – OREX UpgradeState Owned Enterprises Spoornet



2007



Government Rail Model



Advisors appointed




Jobs created / Jobs Lost 250 construction jobs 100 permanent jobs

Project Manager Steve Batyi (Spoornet)


Transport Sector – Rail (cont.) – Northern Cape Province

• 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


Project – Northern Cape GFB Line UpgradeState Owned Enterprises Spoornet



2008




November 2001



Advisors appointed




Jobs created / Jobs Lost 300 construction jobs




• 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.


Project – Belmont – Douglas UpgradeState Owned Enterprises Spoornet



2004


Northern Cape development support initiatives


Northern Cape Province Approval



Advisors appointed



Public-Public Partnership

Jobs created / Jobs Lost 120 Construction Jobs Permanent jobs cannot be quantified

Project Manager Charles Chinyavanhu



• 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 SMME’s

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.


Project – CoalLink UpgradeState Owned Enterprises Spoornet



2018


Government Rail Model Adopted


November 2001




Project Value R 1.8 Bil


Capitalisation and internal restructuring

Jobs created / Jobs Lost 500 construction jobs 200 permanent jobs will be created



Transport Sector – Rail (cont.) – KZN Province

• 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.


Project – GFB Line and Facilities UpgradeState Owned Enterprises Spoornet



2008




November 2001



Advisors appointed







Transport Sector – Rail (cont.) – KZN Province

• 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 province’s export industries.

• The upgrade is also intended to add into the initiatives of the Province, such as the Dube Tradeport.


Project – Ressano Garcia UpgradeState Owned Enterprises Spoornet



2018








Public – Public Partnership with Mozambican Rail




Transport Sector – Rail (cont.) – Mpumalanga Province

• 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 SMME’s and developing miners in the Province.


Project – Fixed Infrastructure UpgradeState Owned Enterprises Spoornet



2006




November 2001



Advisors appointed







Transport Sector – Rail (cont.) – Limpopo Province

• 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 province’s export industries.


Project – Kroonstad – Ladysmith Line and Maseru Container Terminal Upgrade

State Owned Enterprises Spoornet



2006




November 2001










Transport Sector – Rail (cont.) – Free State Province

• 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.


Project – GFB Line and Facilities UpgradeState Owned Enterprises Spoornet



2007




November 2001



Advisors appointed







Transport Sector – Rail (cont.) – Western Cape

• 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.

PUBLIC ENTERPRISES PORTFOLIO COMMITTEE BRIEFING ON SOE INFRASTRUCTURE INVESTMENT 25 JUNE 2003.

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Transcript of PUBLIC ENTERPRISES PORTFOLIO COMMITTEE BRIEFING ON SOE INFRASTRUCTURE INVESTMENT 25 JUNE 2003.