Assessing the impact of Transnet's and Eskom's infrastructure investment programmes on the capital goods sector

Figures & data

Figure 1: Generalised structure of the capital goods and services industry

Figure 2: Location of Ekurhuleni and City of Johannesburg, Gauteng Province

Table 1: Breakdown of Eskom's and Transnet's capex plans

	Capital expenditure
	Eskom	Transnet
Value	R150 billion for the period 2006–2011. Between 2006 and 2025 an estimated R500 billion to R1 trillion could be spent in the energy sector	R78 billion for the period 2006–2011
Projected import leakage	Total approximately 41.92%:	Total approximately 45%:
	Power generation – 47.4%, transmission – 25%, distribution – 15%	Rail – 50%, port operation – 20%, ports – 80%, Petronet – 50%, Transwerk – 20%
Objective	To increase energy supply by 22 000 MW, increasing total capacity to 61 000 MW, and to improve transmission and distribution in South Africa	Improve logistics infrastructure and equipment in South Africa and the delivery of services to clients
Breakdown of spend	Power generation – R106 billion, transmission – R20 billion, distribution – R21 billion, other – R3 billion	Rail (Spoornet and Transwerk) – R38.9 billion, ports (SAPO and NPA) – R28.5 billion, pipelines (Petronet) – R9.96 billion
Composition of projects	New-build:	Rail:
	• 2×1050 MW open-cycle gas turbines at Mossel Bay and Atlantis – R3.5 billion	• Infrastructure – R9.83 billion
	• Ingula pump storage scheme – R9 billion	• Locomotives and wagons – R24.47 billion
	• 4500 MW Medupi coal-fired power plant at Lephalale – R70 billion	• Machinery and equipment – R4.61 billion
	• New coal-fired power station (Project Bravo), Witbank – R84 billion	Ports:
	• A 3600 MW nuclear power station, Western Cape – R110 billion	• Port facilities – R15.12 billion
	• Pebble bed modular reactor – R26 billion	• Building and structures – R3.26 billion
	Refurbishment:	• Machinery and equipment – R9.67 billion
	• Camden, Grootvlei & Komati power stations – R12 billion	Pipelines:
		• Pipeline network – R9.67 billion
		• Building & structures – R91 million
		• Machinery & equipment – R197 million
NPA, National Ports Authority; SAPO, South African Ports Operations.

Table 2: Breakdown of Eskoms' and Transnet's opex plans

	Operational expenditure
	Eskom	Transnet
Spend	Annual estimated spend on three main divisions (based on 2004 figures): R11.439 billion	Annual estimated spend for external activities (based on 2004 figures): R5 billion
Breakdown of spend	Power generation – R4.2 billion:	Energy – R2.0 billion:
	• Turbine maintenance – R989 million	• Diesel – R1.146 billion
	• General maintenance – R814 million	• Electricity – R775.46 million
	• Boiler and mill maintenance – R495 million	• Petrol – R69.74 million
	• Auxiliary plant maintenance – R389 million	• Other – R57.64 million
	• Nuclear – R361 million	Operational commodities – R2.4 billion:
	• Consulting – R291 million	• Component repairs – R1 billion
	• Protection, control and measuring – R273 million	• Rolling stock maintenance – R408 million
	• Waste management – R250 million	• Wheels – R300 million
	• Miscellaneous – R179 million	• Permanent way rental – R230 million
	• Business services – R156 million	• Traction & wagons – R92 million
	Transmission – R1.5 billion:	• Stevedore – R73 million
	• Transformers – R349 million	• Operating service & outsourcing – R62 million
	• Line construction – R225 million	• Project equipment – R58 million
	• Network primary plant – R115 million	• Brake shoes – R53 million
	Distribution – R5.8 billion:	• Other – R69.2 million
	• Electrification & reticulation – R 1.586 billion	• Cargo handling equipment – R43 million
	• Miscellaneous – R639 million	Infrastructure, Transport & Buildings – R1.5 billion:
	• Fleet – R548 million	• Transportation & vehicles – R674 million
	• Consulting – R387 million	• Turn outs – R148 million
	• Information technology services – R368 million	• Permanent way – R137 million
		• Signalling – R90 million
		• Other – R451 million

Figure 3: Opportunities for supplier involvement

STATISTICS SOUTH AFRICA (StatsSA) . 2007 . Community survey 2007 , Pretoria : Statistics South Africa .

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