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Ports and Marine

Transnet Capital Expansion Program

80 different projects opening up South Africa

Transnet SOC Ltd | South Africa | 2006–2013

ZAR65 billion
in expansion projects

80+ projects
in program

860 km
iron-ore heavy-haulage rail line

Challenges

  • Transnet is the statutory body responsible for all rail, port, and long-distance petrochemical-pipelines infrastructure in South Africa.
  • In 2006, it set out to implement between ZAR60 billion and ZAR80 billion of expansion projects in all the major ports-and-rail commodity import-and-export corridors, as well as pipelines.
  • The program was strategically critical to ensure the economic growth of the country was not constrained by those facilities' lack of capacity.

Solutions

  • We led the Hatch, Mott MacDonald, and Goba joint venture as the appointed the EPCM managing contractor for the rail-and-port program from 2006 to 2013.
  • Over 80 different projects in various phases contributed to the complexity, diversity, and geographic locations of the program. It was essential that a solid program-management approach was established to ensure success.
  • Through the HMMG joint venture, we were also responsible for the execution of eight larger megaprojects undertaken by Transnet.

Highlights

  • Since 2006, the 12-month-rolling LTI-frequency rate on the each project improved between 0.22% and 54%. These world-class safety systems have been adopted by Transnet.
  • A labor force in excess of 8,500 was employed, effectively creating 20,000 jobs due to throughput, and using 80% local labor.
  • World-benchmarked processes and practices were used; governance of procurement was established and operational.
  • Key inputs and assistance were provided to the development of South Africa's National Infrastructure Plan to 2036.

Project numbers

ZAR65 billion in expansion expenditures
More than 37 million hours worked since the start in 2006
1,277 contracts let and managed with no major contractual issues
Doubled the capacity of the Port of Cape Town container-terminal expansion to 1.4 million twenty-foot-equivalent units per annum

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