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Articles in category: Capital Equipment
JSE-listed construction and engineering firm Group Five has been awarded a R4bn engineering, procurement and construction contract by Ghanaian energy group Cenpower Generation.
It will design and build a 350MW gas-and oil-fired combined-cycle power plant in the Tema industrial zone in Ghana.
The deal is still subject to certain conditions and will proceed to commercial and financial closure over the coming weeks. Once this has happened, the group will receive a notice to proceed.(Read Full Article)
Total cost of ownership (TCO) analysis was popularised by the Gartner Group in the late 1980s to assist clients in quantifying the financial impact of deploying IT products. A decade later, McKinsey applied the TCO approach to asset intensive industries in South Africa(Read Full Article)
The cost of running a fleet of company vehicles continues to rise each month. These increases are driven by factors such as the deteriorating rand-dollar exchange rate and the ever-increasing fuel price. So procurement managers need to be aware of the ways in which their fleet costs can be better managed.(Read Full Article)
TRANSNET has secured a R6bn funding guarantee from US export credit agency US-Exim for the funding of the diesel locomotives the company is buying from General Electric (GE).
The group CE of the state-owned ports, rail and pipeline company, Brian Molefe, said on Wednesday that the guarantee was "a massive thumbs-up from the international investor community, affirming Transnet’s credit-worthiness and South Africa’s attractiveness as an investment destination.
"The guarantee from US-Exim enables Transnet to raise funds in the markets for the financing of the GE locomotive transaction.(Read Full Article)
The awarding of studies for potential mining projects is on the increase, says DRA CEO Paul Thomson, who spoke to Mining Weekly Online on the eve of his company’s thirtieth anniversary celebrations.
The head of the 3 000-employee project house, which began in Johannesburg in 1984 in tough economic conditions not dissimilar to those prevailing now, says that DRA is currently in a recruitment phase to meet the increasing tempo of demand for its engineering and project management services.(Read Full Article)
SMALL and medium sized engineering companies must create niche markets for themselves to supply Transnet with parts for the locomotives the freight logistics state-owned company envisages building within the next two to three decades.
Transnet CEO Brian Molefe said at a University of Pretoria Alumni breakfast that the growth in Africa and the expansion of intra-African trade would ultimately increase the growth in railways.
His vision for Transnet entailed the "industrialisation of the railways" where Transnet would be manufacturing locomotives and establish concessions for its current freight role.(Read Full Article)
South Africa may have difficulty in financing new nuclear power plants (NPPs), an Academy of Science of South Africa symposium in Pretoria has been warned. The concern was expressed by University of Cape Town Energy Research Centre director Professor Harald Winkler.(Read Full Article)
ANSYS, an AltX-listed engineering company, has been awarded a R188m Transnet contract for the supply of an integrated dashboard display system for locomotives.
The black-owned and controlled group, which develops products for the rail, mining, industrial and defence markets, had already designed a prototype display that had been "rigorously tested" on Transnet locomotives.
This comes after Transnet earlier in March awarded R50bn worth of contracts to two Chinese and two North American railway groups to build 1,064 electric and diesel locomotives as part of its R308bn market-demand strategy to 2019.(Read Full Article)
The South African Navy (SAN) has confirmed that South African defence procurement (and disposals and research and development) agency Armscor has been granted the authority to start the acquisition process for three new offshore patrol vessels (OPVs) and three new inshore patrol vessels (IPVs). This programme is codenamed Project Biro.(Read Full Article)
Freight logistics group Transnet has awarded the much anticipated contracts for the procurement of 1064 locomotives, collectively valued at R50-billion, to four separate companies, including two from China – the R50-billion contract value, which is the largest ever concluded by the State-owned utility, includes hedging and escalation costs.
CEO Brian Molefe announced on Monday that China South Rail (CSR) Zhuzhou Electric Locomotive and Bombardier Transportation South Africa, led by the German arm of the Canadian company, would collectively supply 599 electric locomotives, while General Electric South Africa Technologies and China North Rail (CNR) Rolling Stock South Africa would supply the 465 ...(Read Full Article)
South Africa’s Transnet Engineering (TE) is assembling 30 General Electric-branded C30ACi diesel-electric locomotives at it Koedoespoort facility, east of Pretoria, for African railways customers and has entered into a partnership with the US multinational to jointly market the solution across the region.
Transnet CEO Brian Molefe confirmed the orders at a briefing held to announce the extension of a R1.1-billion Nedbank loan (with a guarantee from US export credit agency Ex-Im) for 53 of the 143 C30ACi locomotives that have already been introduced into Transnet Freight Rail’s (TFR’s) fleet.(Read Full Article)
Maintenance Services Gain Importance Amid Surging Global Demand for Refined Fuels
Refinery maintenance is often overlooked due to high costs, shutdown time and the resultant loss of production. The growing global demand of processed fuels has increased the significance of refinery maintenance unprecedentedly. This research service deals with the steadily growing turnaround maintenance market in refineries. The study analyses the historic and futuristic scenarios of the industry, from 2009 to 2017.
..(Read Full Article)
In a bid to ensure it is able to harness the ongoing strong demand in Africa, SABMiller announced two major investments in the region yesterday.
In Uganda, subsidiary Nile Breweries officially opened a new brewery in Mbarara in the western region of the country. The new facility, which is Nile Breweries’ second brewery in the country, involved an investment of $90 million (R918m) and doubles the company’s brewing capacity to 3.6 million hectolitres a year.
Further south in Zambia, the group announced that it was investing $24m in building a “hi-tech opaque brewery” in Lusaka.(Read Full Article)
French energy solutions group Alstom acknowledged on Tuesday that tests performed on the boiler protection system (BPS), which forms part of the control and instrumentation (C&I) solution to be installed at the Medupi power station, had not been “fully satisfactory”. However, in a statement released a day after Eskom announced that the start of the first Medupi unit, Unit 6, had been delayed until the second half of 2014, from the end of 2013, Alstom said it remained confident of delivering its commitments for Medupi “in line with agreed timeframes”.(Read Full Article)
ESKOM said on Monday that the first power from its Medupi plant would hit the grid only in the second half of 2014 — a delay of at least six months that will increase the cost of the project and possibly cause a gap in supply in 2014. The power utility said it was working with stakeholders to ensure security of electricity supply despite the delay caused by labour unrest and "underperformance" by contractors. "The target date of December 2013 is unlikely to be achieved. "We have done everything in our power to meet the December target date," Mr Dames said ...(Read Full Article)
Procurement professionals who participate in the sourcing decisions for capital equipment often face several challenges: how to measure and derive value (especially when historical precedent is not available), how to gain the trust of the business stakeholders (especially the plant production and engineering ones), how to gain an “even place” at the negotiation table with the suppliers, etc. In attempting to address several or all of these challenges simultaneously, procurement professionals lose on more than one count. There are a few important pitfalls that need to be avoided to ensure success in the sourcing efforts of capital equipment.(Read Full Article)
KBR today announced that it has been awarded a contract by Sasol, duly represented by Sasol Technology (Pty) Ltd, for the provision of engineering, procurement and construction management services (EPCm) for the gaseous oxygen compressor at the Oxygen East Plant at the Sasol Synfuels Complex in Secunda, South Africa. The EPCm services to be provided by KBR entail all the management services required in order to restore the integrity of the gaseous oxygen compressor. This contract will be executed.......(Read Full Article)
South Africa’s state railway agency faces a courtroom battle over its choice of an Alstom SA-led group as preferred bidder for a 51 billion rand ($5.6 billion) contract after a rival candidate appealed the award. Dudula Rail (Pty) Ltd, a bidding group controlled by Bussnang, Switzerland-based Stadler Rail AG, has asked for a review of the decision by the Passenger Rail Agency of South Africa to appoint Alstom, Kerry Williams, a lawyer at Johannesburg-based Webber Wentzel, which is representing the rail agency, said in an e-mailed response to questions yesterday. “Dudula has set the urgent interlocutory application down ...(Read Full Article)
The China Development Bank will loan South African logistics group Transnet about $5 billion (R46 billion) to revamp its ageing railways, which transport commodities including coal and iron ore, a source close to the deal said on Tuesday. “The figure may go up or down and it is a loan,” the source said, but asked not to be named. “The money will be used for railway infrastructure.” The deal was reached before a summit of the leaders of the emerging market powers BRICS - Brazil, Russia, India, China and South Africa - opened in Durban on Tuesday with a goal of helping ...(Read Full Article)
State-owned freight and logistics company Transnet is due to spend more than R1bn on research and development (R&D) over the next seven years, Group CE Brian Molefe said on Monday. Transnet is on the verge of rolling out a R300bn capital development programme, but Mr Molefe said "we are not going to do them (the capital rollout) in the same way as 50 years ago" when Transnet built the now-existing infrastructure, "technology has taken over." He was speaking in Johannesburg at the signing of a three-year memorandum of understanding with Council for Scientific and Industrial Research (CSIR) CEO Sibusiso ...(Read Full Article)
Caterpillar, the world's largest maker of construction equipment, posted a 55-percent drop in quarterly profit on Monday and set a cautious tone for the year, citing weak demand and oversupply. Executives at the company, which last year slashed production to reduce inventory, balanced their optimism on recent improvements in US housing starts with concern about China's slowing growth, the US deficit and eurozone instability. However, investors took heart in Caterpillar's 2013 profit forecast of $7 to $9 per share..................(Read Full Article)
South Africa has leapfrogged India’s embattled iron-ore industry to become China’s third-biggest supplier of the key ingredient to make steel, despite labour problems at Kumba Iron Ore late last year. Iron-ore exports from South Africa to China rose 12% to 40.6-million tons last year compared with 2011. Indian sales to China fell by nearly 55% to 33-million tons over the same period as Indian authorities clamped down on the industry.
The Passenger Rail Agency of South Africa (Prasa), the operator of commuter rail service Metrorail, has selected Gibela Rail Transportation (a consortium made up of Alstom and local company Actom) as its preferred supplier of rolling stock for its fleet renewal programme.(Read Full Article)
Barloworld says it delivered "a very pleasing result" for the year to September, with operating profit up 31% and headline earnings per share increasing by 46%. It says the group’s equipment businesses in Southern Africa and Russia achieved record deliveries to mining operations, while its automotive and logistics unit saw strong results in all trading segments.