Question no: 383
Mr S J Masango (DA) to ask the Minister of Public Enterprises:
(1) Whether Transnet has awarded a contract to a certain company (name furnished) to install a new multipurpose pipeline from Kendal to Watloo and from Alrode to Durban; if not, what is the position in this regard; if so, what are the relevant details;
(2) Whether (a) local skilled persons and (b) foreigners are employed in this project; if not, why not in each case; if so, how many skilled (i) foreigners and (ii) South Africans are employed;
(3) Whether there is any skills transfer to South Africans in these projects; if not, why not; if so, what are the relevant details.
Reply:
(1) Transnet has awarded the tender for the construction of the pipeline to the SpieCapag Group Five JV. This contract awarded does not include the construction of the terminals that will be built in Durban and Jameson Park, near Heidelberg.
The award of the following elements of the project will be implemented after the procurement processes are completed.
The construction of the New Multi Products Pipeline ("NMPP") consists of approximately:
* 555 kilometres of 24" diameter welded carbon steel pipeline in a new Trunkline from Durban to Jameson Park;
* 41 kilometres of 16" diameter welded carbon steel pipeline in a new inland line between Jameson Park and a depot at Alrode all in the Gauteng province;
* 31 kilometres of 16" diameter welded carbon steel pipeline in a new inland line between the depots at Alrode and Langlaate all in the Gauteng province;
* 88 kilometres of 16" diameter welded carbon steel pipeline in a new inland line between the existing pump station at Kendal to the Depot at Waltloo all in the Mpumalanga and Gauteng provinces.
(2)There are both local and foreign skilled and semi-skilled employees employed on this contract, the breakdown is as follows:
* 517 general South African workers;
* 482 skilled and semi-skilled South Africans;
* 91, with an intended increase to 124, skilled and semi-skilled foreign employees.
There are 75 skilled expatriates and 1001 locals, of which 313 are general workers, with the remainder being semi-skilled and skilled. The skilled expatriates are mainly involved with the field joint coating and the trenchless crossings where there are insufficient local skills and SA companies with the specific expert capabilities.
NB: Note that numbers above do not reflect the work that has been subcontracted out, where the preference is to use South African companies where possible.
(3) Every effort is being made to transfer skills. This is achieved in two primary ways:
* Firstly, where the SpieCapag Group Five JV has instituted a ‘people at the gate’ programme. This entails going into the communities and training appropriate people to work on the project where possible. It includes the development of specialized welders and drivers for some of the equipments.
* Secondly, on-the-job training where South Africans are working with their foreign counterparts in areas like pipeline construction and engineering design. This allows knowledge and skills to be transferred through practical application of foreign expert knowledge.
Issued by: Department of Public Enterprises
25 September 2009
Source: Department of Public Enterprises (http://www.dpe.gov.za/)
