South African port operator Transnet Port Terminals (TPT) has committed capital expenditure of R 33 billion over the next seven years to encourage economic growth and efficiencies in its port terminal management.
These investments fall within the Transnet Market Demand Strategy (MDS) recently announced by State President Jacob Zuma in his State of the Nation Address, during which he outlined the South African government’s focus on infrastructure development. In total the Transnet Group will spend R300 billion (US $ 39.1 billion) in port and rail capital projects until 2018/19.
TPT Chief Executive, Karl Socikwa: “The MDS has major implications for our division’s responsibility to facilitate unconstrained growth, unlock demand and create world-class port operations through improved efficiencies.
“It entails an acceleration of our capacity creation programmes at all our major terminals, to ensure that we are able to grow the economy and make the ports as competitive and efficient as possible.”
The bulk of TPT’s spend – 71% of the R33 billion seven year investment pipeline – will be focused on expansion projects and creating capacity to meet projected demand, while the remaining 29% will go towards capital sustaining projects aimed at achieving operating norms and upholding service delivery. The latter includes the replacement of aged equipment as well as the refurbishment of existing equipment.