State freight logistics group Transnet announced that it had awarded a ZAR 2.5 billion construction contract for the urgently needed ZAR 11.2 billion multi product fuel pipeline from Durban to southern Johannesburg, to a consortium comprising Group Five Civils and international pipeline and facilities contractor Spiecapag.
The contract would involve the development of a 544 kilometer, 24 inch trunk line from Durban to Jameson Park in Gauteng as well as a 16 inch inland network from Kendal to Waltloo and Jameson Park to Langlaagte through Alrode. The environmental approvals for the inland portion of the network had been obtained and construction was, thus, expected to start in July 2008.
The release added that “Transnet had also contracted with a joint venture, comprising Arup and WorleyParsons to execute the engineering, procurement and construction management, while the purchase of the coated line pipe had been secured from South Africa, through Impumelelo Pipeline.”
Transnet in a statement said that it was confident of completing the project by the third quarter of 2010, which would be after the FIFA World Cup, when fuel demand was expected to peak as football fans used public and private transport to follow their teams during the month long tournament.
But Ms Maria Ramos CEO of Transnet had stated previously that mitigation strategies were being implemented to keep the inland of South Africa wet noting that this planning was being conducted together with the liquid fuels industry itself, as well as the Department of Minerals and Energy. Ms Ramos said that the pipeline construction contract is the single biggest to be awarded by the group since it began rolling out its ZAR 80.3 billion, five year capital investment program across its rail, ports and pipeline businesses.
The pipeline development is seen by many in the liquid fuels sector as key to improving security of supply to South Africa's economic heartland of Gauteng as demand expands and as the existing pipeline network reaches the limits of its capacity.
