Gauteng Business 2018-19 edition

OVERVIEW
Engineering
Tens of billions are to be spent on Gauteng infrastructure.
SECTOR HIGHLIGHTS
Many engineering companies
are changing their
business models.
Spending on infrastructure in Gauteng Province represents a
major opportunity for companies in the engineering sector.
The Provincial Government of Gauteng spent R30-billion
on infrastructure between 2013 and 2016. A further R46-billion
has been pledged for the years to 2019. In addition, Gauteng municipalities
will spend R94-billion over the next five years using their city
budgets. Some 31 major housing developments have been approved
for the various development corridors around Johannesburg. These
projects will attract public and private money.
A study carried out by KMPG for the province found that spending
on infrastructure resulted in additional economic activity worth R26-
billion and created 92 000 direct jobs. A major provincial infrastructure
project was the technically demanding Gauteng Freeway Improvement
Project, which involved many companies and several joint ventures.
GOBA Consulting Engineers and Project Managers supervised the design
and construction of the project, as it did the even bigger Vaal River
Eastern Subsystem Augmentation Project (VRESAP). This water project
entailed redirecting water flows from one system to another to feed
the petrochemical and mining industries of Mpumalanga Province.
Gauteng’s history as a mining province ensured that engineering
and mining grew hand in hand over the decades. In its early days, the
University of the Witwatersrand was called the South African School of
Mines and Technology. The Wits Mining Institute, which falls under the
Faculty of Engineering and the Built Environment, has recently introduced
the Sibanye-Stillwater Digital Mining Laboratory (DigiMine) at the
Chamber of Mines building. This enables research and development to
take place in a safe and simulated environment.
The University of Pretoria’s Graduate School of Technology Management
(GSTM) offers a range of degrees and short courses in engineering-related
fields, including a Master’s in Engineering Management.
Whereas some engineering companies have developed into
conglomerates with several
divisions and international
operations, others have
focussed on niche areas such
as construction, electrical
engineering, or, as in the case of
Fluids Media Engineering, fluid
piping, storage and distribution.
Restructuring
Several engineering groups
have been restructuring in recent
years. Murray & Roberts,
a giant and diverse company,
disposed of Murray & Roberts
Infrastructure and Building
Platform (MRIB) in 2016 to focus
on procuremen.t, project
engineering and construction
in certain resource sectors.
Firefly Investments, the consortium
that bought MRIB, is
led by Southern Palace, which
includes among its shareholders
some MRIB managers and
the Government Employees
Pension Fund (GEPF). The transaction
goes a long way to creating
more diversity in the ownership
in the construction and
engineering sector.
Genrec, a large steel
engineering and fabrication
business company that started
GAUTENG BUSINESS 2018/19
48