As was announced by Jacob Zuma, South Africa’s State President, earlier this year, R300 billion of the massive infrastructure development drive would be spent upgrading Transnet over the next seven years, the breakdown of which was presented at the FACE2FACE 3S MEDIA interactive Forum on the 19 April 2012 by Transnet’s CEO, Siyabonga Gama. Of the R300 billion, table 1 below shows the divisional split, table 2 the asset split and table 3 the split by transported product category.

Table 1: Infrastructure spend by Transnet business divisional
Transnet Division R billions %
Transnet National Ports Authority (TNPA) 46.9 15.6%
Transnet Port Terminals (TPT) 32.9 11.0%
Transnet Rail Engineering (TRE) 3.8 1.3%
Transnet Pipelines (TP) 11.4 3.8%
Transnet Freight Rail (TFR) 201.0 67.0%
Other 4.1 1.4%
Total 300.0 100.0%

This will be apportioned by type of asset as follows:

Table 2: Infrastructure spend by asset type
Asset type R billions %
Land, buildings and structures 16.5 5.5%
Pipeline 9.4 3.1%
Port facilities 66.3 22.1%
Machinery and equipment 11.8 3.9%
Perway (Railway lines) 71.1 23.7%
Locomotives 77.8 25.9%
Wagons 47.2 15.7%
Total 300.0 100.0%

Table 3: Infrastructure spend by transported product category
Product category R billions %
General Freight 142.9 47.6%
Export coal 32.1 10.7%
Bulk 31.8 10.6%
Export Iron Ore 25.4 8.5%
Containers 24.5 8.2%
Piped products 9.4 3.1%
Break-bulk 4.0 1.3%
Other 30.0 10.0%
Total 300.0 100.0%

More details of expenditure, for example by year and by asset type over the next seven years, will be published in Transport World Africa’s June/July 2012 edition. To subscribe to the magazine click here.