Issued by: Portnet Corporate Communications
Attention: Financial Editor
OFFICE OF THE EXECUTIVE DIRECTOR
PORTNET CAPITAL EXPENDITURE 1996/1997 02 AUGUST 1996
PRESS RELEASE -------------
As per the procedures that have to be followed in terms of the National Infrastructure Planning the approval of capital expenditure for Portnet for 1996/1997 has now been confirmed. The guidelines which will be followed for the future approval of capital expenditure, to ensure accountability is as follows:
NEW GUIDELINES FOR CAPITAL INVESTMENT IN INFRASTRUCTURE -------------------------------------------------------
GOALS AND OBJECTIVES --------------------
The goals and objectives of the new guidelines are to:
PRINCIPLES ----------
The principles guiding infrastructure investment are as follows:
THE GUIDELINES --------------
The following guidelines are now the basis for evaluation of capital projects. Each capital project must be presented in a similar format. In case a particular guideline does not apply an explanation must be given.
FINANCIAL ANALYSIS ------------------
In this section the following areas must be covered:
a) Regional financial impact analysis b) Profitability Index (PI) c) Internal Rate of Return (IRR) d) Net Present Value (NPV) e) Discounted Payback Period (DPP) f) Post-Project Evaluation (PPE) - including accountability model g) Strategic Procurement Arrangement
SOCIO-ECONOMIC ANALYSIS
a) Broad economic framework for project b) Scope definition (whether new or existing) c) Beneficiation (value-adding) d) Black Economic Empowerment (SMME's etc) e) Efficiency and improvement of Service Levels f) Job creation g) Balancing Regional Economic Development h) Social costs/benefit analysis i) Trade Implications
TECHNICAL ANALYSIS ------------------
a) Detailed design b) Technology integration and building technology synergy (reducing duplication) c) Building Technical Capacity within Transnet (reducing dependency on consultants) d) Appropriate Technology Transfer
HUMAN RESOURCE ANALYSIS -----------------------
a) Skills analysis and projections b) Training and Development Plans (prior and post project implementation) c) HR costs
PORTNET CAPITAL BUDGET 1996/97: NEW PROJECTS
Cash Provision for 96/97 Rm. RICHARDS BAY ------------ Bulk Upgrade of Bulk terminal 104.031
Break Bulk Upgrade of Combi Terminal 30.000 Bulk metal terminal 20.000 Mechanical handling workshop 1.350
Landlord Provision of finger jetty at berth 705/706 17.000 Other smaller projects 7.600
TOTAL RICHARDS BAY 179.981
DURBAN ------ Containers 31.500 Break Bulk 2.310 Landlord 8.000
TOTAL DURBAN 41.810
CAPE TOWN --------- Cartage 2.532
TOTAL CAPE TOWN 2.532
SALDANHA BAY ------------ Bulk 5.500 Landlord 4.320
TOTAL SALDANHA BAY 9.820
MARINE SERVICES 17.500
Lighthouses 1.850
GLOBULAR ITEMS: -------------- Upgrade / Provide mess and ablution facilities 15.000 Other items : Excluding P.E & East London 75.389 Head office 8.036
TOTAL PORTNET 392.129
PORT ELIZABETH -------------- BULK Suction cleaning for ore loading plant 0.800
CONTAINERS Surfacing of area behind berth 4.000 Demolish shed 1 and refurbish area 1.000 Upgrade rail / road transfer terminal 0.750
BREAK BULK Motor car terminal 5.000
LANDLORD Suction no. berth 0.800 Investigation in industrial port 3.000
GLOBULAR ITEMS 4.506
TOTAL PORT ELIZABETH 19.856
EAST LONDON ----------- BULK Convert Grain elevator for import: Preliminary investigation 0.500 Conveyor belt / ship unloader / civil works 2.250
CONTAINERS Re-develop combi terminal 7.500 Provision of additional container stacking area 5.000 Provide container gantry crane 0.000
GLOBULAR ITEMS 5.105
TOTAL EAST LONDON 20.355
RICHARDS BAY 312.635 DURBAN 226.743 EAST LONDON 21.422 PORT ELIZABETH 36.038 CAPE TOWN 33.750 SALDANHA BAY 117.235 MARINE SERVICES 31.370 LIGHTHOUSES 2.999 GLOBULAR ITEMS 206.710
TOTAL PORTNET 988.902