Day: July 30, 2024

Transnet says it is making ‘considerable progress’ in the implementation of reforms in accordance with the Freight Logistics Roadmap and the Guarantee Framework Conditions issued to Transnet by National Treasury.

The reforms include the reform of Transnet’s rail business, corporatisation of the Transnet National Ports Authority (TNPA) and the disposal of the company’s non-core assets.

Transnet Group Chief Executive, Michelle Phillips, said: ‘These initiatives are a demonstration of Transnet’s commitment to the structural reforms in response to the changes in policy and regulations. In some cases, these changes entail entry of third parties in the rail and port networks, which is a necessary step to stimulate competition and address long-standing challenges such as underinvestment.’

Rail reform

Transnet said the rail reform process is on track.

This includes what the company calls the ‘vertical separation of Transnet Freight Rail (TFR) into a Rail Operating Company and an Infrastructure Manager’.

‘Since
the publication of the draft railway Network Statement in March 2024, Transnet actively participated in a consultation process facilitated by the Interim Rail Economic Regulatory Capacity (IRERC). This was in preparation of the finalisation of the final Network Statement to open train slots for third party train operator access.

‘Following extensive consultations to align with key stakeholders, the Interim Infrastructure Manager has made the input to the IRERC, and Transnet looks forward to the publication of the final network statement and proposed tariff methodology to open slots for third party access by 30 September 2024,’ Transnet said.

According to Transnet, the Rail Operating Company and Infrastructure Manager operating models, and organisational designs are expected to be finalised in the first quarter of 2025.

Non-core assets and TNPA

The corporatisation of the TNPA is expected to culminate in the establishment of the National Ports Authority, which will be wholly owned by Transnet.

Work is unde
rway to complete the Memorandum of Incorporation and the Registration of the National Ports Authority.

‘The reform will enhance TNPA’s regulatory oversight on terminal operators across its port network. The corporatisation will establish TNPA as a financially autonomous entity capable of generating its own revenue, attract increased investments to improve the efficiency and positioning of SA ports to enhance competitive maritime trade and create appropriate partnerships.

‘It will also, through its independence, enhance terminal licence oversight and align with international standards and regulations governing port authorities and ensure compliance with South African maritime and port regulations,’ Transnet explained.

Furthermore, the company said its disposal of non-core assets is also progressing well.

‘The disposals will generate cash and reduce holding costs. The Transnet Board of Directors has approved a plan for the disposal of the non-core assets. Transnet will finalise the full list of non-core ass
ets for disposal in the current financial year,’ the entity said.

Source: South African Government News Agency

The Department of Minerals and Petroleum Resources has expressed confidence that a suitable investor will come on board and ‘be able to monetise’ gas discoveries off the south coast of South Africa.

This after international energy giant, TotalEnergies, announced its withdrawal from offshore Block 11B/12B and 5/6/7.

‘The Department of Mineral Resources and Energy (DMRE) notes TotalEnergies’ announcement to exit from offshore blocks 11B/12B and 5/6/7. We are confident that a suitable investor will come on board and be able to monetise the gas discoveries.

‘The department remains committed to the exploration of the country’s oil and gas resources and will intensify engagements with key role players to ensure the development and sustainability of the sector,’ the department said in a statement.

Furthermore, the DMPR said it was pleased that the company is not totally withdrawing from South Africa.

‘Additionally, we are pleased that TotalEnergies is not entirely leaving oil and gas opportunities in South Afri
ca as they still hold exploration rights over Blocks Deep Water Orange Basin and Orange Basin Deep, Outeniqua South, and recent entry in Block 3B/4B east of Deep Water Orange Basin,’ the department said.

Source: South African Government News Agency

Rand Water will this evening wrap up the final phase of its month-long proactive maintenance, which commenced last month.

The final phase of the maintenance project includes work at Zuikerbosch Water Treatment Plant (ZWTP) Engine Room 2, which resumed on Monday and will end on Tuesday, 30 July 2024, around 9pm.

‘This work involves maintenance of various valves, pipelines as well as electrical and mechanical assets,’ Rand Water explained.

According to Rand Water, the work will impact the water supply to the Palmiet Pumping Station, as pumping will be reduced to 76% during this period.

This means that 24% of Palmiet’s pumping capacity will be out of production.

Municipal customers affected by this maintenance work include residents from Johannesburg, Tshwane and Ekurhuleni.

The Madibeng Local Municipality in Bojanala Platinum District Municipality, in the North West, will also be impacted.

The water utility explained that areas recover differently after the maintenance process due to different hydraulic
designs of the systems, which indicate that some areas will recover earlier than others.

Rand Water said it continues to work with affected customers to ensure that municipalities continue to inform their customers of the extent and impact of water supply and measures to provide alternative water supply to residents.

‘Maintenance of the water infrastructure is critical to improving the reliability, integrity and long-term preservation of the infrastructure to ensure sustainable and uninterrupted supply of bulk potable water,’ said Rand Water.

Source: South African Government News Agency

South African swimmer Tatjana Smith has bagged the nation’s first gold medal at the 2024 Paris Olympics, putting on a glittering performance in the women’s 100m breaststroke.

Smith finished the race at 1:05.28 on Monday.

‘Smith’s own Olympics tally has now grown to three, with two golds and a silver, and one more will see her equal Chad le Clos on four, the most of any South African Olympian. The chances of her adding to that total later in the week are high, given she’s the reigning champion in the 200m,’ the South African Sports Confederation and Olympic Committee (SASCOC) said.

Nearly 150 athletes are representing Team South Africa at Paris 2024 – in the country’s 21st appearance at the Olympic Games, taking place from 26 July to 11 August.

‘I had no idea where I was most of the race. I actually didn’t think I medalled because when I turned to my left, the two blocks next to me both had lights on and it felt like someone else on the other side touched first.

‘So, I actually didn’t think I was medallin
g. My main goal was just to not do what I did in Tokyo and look around. So literally the last 15 metres, I was like, no, close your eyes, let’s just go,’ Smith said.

President Cyril Ramaphosa congratulated Smith in a post on social media platform X, adding that he looked forward to more spectacular performances.

Source: South African Government News Agency

South Africa’s position at the 21st African Growth and Opportunity Act (AGOA) Forum was to reset and create partnerships with an emphasis on industrialisation, building a capable state and job creation.

‘As the dtic [Department of Trade, Industry and Competition] family, we regard the AGOA Forum as a crucial engagement reinforcing the strong economic ties between South Africa and the United States and our African continent,’ Trade, Industry and Competition Minister Parks Tau said.

He said the mutually beneficial economic and trade partnership was highlighted by the more than 600 US businesses operating in South Africa and with over 1.3 million jobs created in sub-Saharan Africa.

The Minister was addressing the media in Cape Town on Tuesday to present some of the major outcomes that emanated from the two international engagements, AGOA and the 14th BRICS+ held in the United States and in Moscow, Russia, recently.

Parks said South Africa received strong bipartisan backing from the US Congress and colleagues
in the US Administration for the reauthorisation of AGOA.

Proposals presented by the South African delegation included the extension of AGOA for stability, improved rules of origin, and adjustments to the eligibility review process to preserve regional value chains and enhance Africa’s manufacturing capabilities.

‘The importance of maintaining these value chains was emphasised, with calls for AGOA enhancements to support the Africa Continental Free Trade Area (AfCFTA) integration.

‘AGOA and AfCFTA should be viewed as complementary forces crucial for Africa’s economic integration rather than as separate entities.

‘AGOA has significantly expanded Africa’s access to US markets, while AfCFTA aims to create a unified continental market by eliminating tariffs and fostering economic cooperation among African nations,’ Parks said.

Parks said to fully leverage both frameworks, AGOA’s provisions should be enhanced to support AfCFTA’s goals.

‘This includes extending AGOA to provide trade stability, improving rules
of origin to streamline the integration of regional value chains, and adjusting the eligibility review process to reflect AfCFTA’s progress,’ he said.

The Minister said by aligning AGOA with AfCFTA, Africa can create a more cohesive economic structure that boosts intra-African trade, enhances manufacturing capabilities and integrates regional economies into the global market and driving sustainable growth across the continent.

‘I would like to commend Deputy Minister Andrew Whitfield for his exceptional facilitation during the highly contested meeting that determined the host nation for AGOA in 2025. He navigated such a challenging and contentious environment skillfully. DM Whitfield’s adept handling of the situation was crucial in achieving a balanced and effective outcome.

‘Equally, Deputy Minister Zuko Godlimpi represented South Africa at the pivotal BRICS+ Trade Minister’s Meeting. A key from the BRICS+ Meeting was to call for a predictable, fair and equitable trade environment consistent with WTO’s ru
les as crucial for advancing economic prosperity,’ the Minister said.

The outcomes emanating from the BRICS+ Meeting included, among others:

– The need for coordinated multilateral action on climate change and expressed concerns about unilateral measures like the Carbon Border Adjustment Mechanism (CBAM) impacting developing countries. Furthermore, they agreed to ensure climate measures respect WTO commitments and resist discriminatory practices.

– The potential of e-commerce to enhance market access and economic growth with calls for developing international rules and standards to address challenges such as cross-border taxation and data privacy.

– The role of SEZs in driving economic growth and investment was discussed, with a commitment to sharing best practices.

Parks said both the AGOA Forum and the BRICS Trade Ministers Meeting were fundamental in advancing international trade relations and economic cooperation.

‘These engagements underscore the importance of cooperative trade relations in shaping
a more equitable and sustainable global economy.

‘They both underscore South Africa’s commitment to pursue transparent and strategic partnerships with both our Global North and Global South partners guided by the global policy and programmatic blueprints such as the SDGs, the Paris Climate Accord, the AU’s Vision 2063, and our very own NDP,’ Parks said.

Source: South African Government News Agency

The Special Tribunal has reviewed and set aside two Independent Development Trust (IDT) contracts, worth some R1.6 billion, and has ordered the five companies, who received the contracts, to pay back all profits gained from the contracts.

According to the Special Investigating Unit (SIU), the five companies were awarded the contracts by the IDT to implement projects at the Department of Correctional Services.

‘The decision of the Special Tribunal… follows an investigation by the Special Investigating Unit (SIU) into the affairs of the Department of Correctional Services.

‘This investigation revealed that the IDT failed to follow the applicable statutory and regulatory procurement provisions governing public procurement as set out in the Constitution of the Republic of South Africa, in concluding the contracts with the companies,’ the SIU said.

According to the SIU, the department had appointed the IDT as an implementing agent to ‘manage the implementation of security fencing, parameter fencing, intercoms
and conditions audits, and other infrastructure projects at various correctional centres in South Africa’.

‘Following its appointment as an implementing agent, the IDT contracted Secelec Consulting Engineers (Pty) Ltd, Bakone Consulting Engineers (Pty) Ltd, and Bakone Secelec Consulting JV 2011 as transactional advisors to implement the building of fences around various prisons at a cost of R492 960 564.66. The contract was later cancelled.

‘In 2012, the IDT appointed Manyeleti Consulting SA (Pty) Ltd and SA Fence and Gate JV as transactional advisors for a similar job. The budget for the initial tender increased with R72 454 350.62 or 15.2%.

‘However, the total budget increased to R861 255 544.40. This escalation represents 81% of the approved budget and way above the permitted 20% deviation as per the National Treasury regulations. The Tribunal found that the tender/contract award was predetermined,’ the SIU explained.

The corruption busting unit welcomed the Special Tribunal’s ruling on the matter and
added that any criminality will be reported to the National Prosecuting Authority (NPA).

‘The Special Tribunal had ordered the five companies to render the full accounts of all the payments they received under the contracts awarded by IDT and reasonable expenses incurred, supported by necessary vouchers.

‘Following the calculations of expenditure to service the now illegal contracts, the companies shall pay whatever profits that were earned. Furthermore, the companies were ordered to cover the legal costs of the review application brought by the SIU.

‘The SIU welcomes the decision of the Special Tribunal, as it forms part of the implementation of investigation outcomes and consequence management to recover financial losses suffered by the State…[and] will refer any evidence pointing to criminal conduct it uncovers to the [NPA] for further action,’ the SIU said.

Source: South African Government News Agency