Public Enterprises Minister Malusi Gigaba said on Thursday that he would commission a specialist team to deal with concerns around the cost overruns and time delays of State-owned logistics group Transnet’s new multi-product pipeline.

Transnet indicated this week that the cost of the pipeline would be more than double from about R9,5-billion to R23,4-billion after the company revised the schedule and scope of the project.

The pipeline is meant to replace the old multi-product line from Durban to Johannesburg, built in 1965, which carries mainly petrol and diesel and which is nearing the end of its life.

Gigaba said that he would also meet with the group’s new chairperson, Mafika Mkhwanazi, and acting CEO Chris Wells to ensure that the State-owned enterprise committed fully to the delivery of the project within the revised budget and timeframes.

The Minister said that the delayed delivery of the pipeline posed a risk to security of fuel supply to the inland, since the pipeline and all related infrastructure should have been completed by December 2011.

It is now anticipated that the pipeline project, including the pipeline and associated terminals, would only be completed by December 2013.

“In future, the shareholder will not tolerate any inadequate planning on the part of State-owned enterprises which would impact negatively on their ability to deliver on their respective mandates, and thus impeding the achievement of the State’s objectives,” he stated.