South African Business 2020 edition

OVERVIEW
of TMH Africa, a part of the TMH
Group, which has head offices in
Switzerland.
Mining continues to be an important
component of most engineering
firms’ portfolios. Murray
& Roberts reported that the six
months to December 2018 saw its
Underground Mining order book
increase to R25.7-billion (against
R15.3-billion in 2017).
Murray & Roberts has completed
its transition from being a
South African company focussing
on contracting to a multinational
engineering and construction
group with a focus on natural
resources markets.
ELB Group’s Engineering
Services division employs more
than 1 000 people and the company
is currently working fulltime
on the vast Gamsberg zinc project
in the Northern Cape. Manganese,
coal, iron ore and coal are other
mining sectors where ELB is active
and it does work for Eskom (the national
utility) and companies such
Nestlé and Unilever.
The Renewable Energy
Independent Power Producer
Procurement Programme (REIPPPP)
has created an entirely new industry
in less than seven years, with
investment of about R200-billion
in solar parks and wind farms. This
has created many opportunities for
engineers.
Infrastructure
Several engineering firms have
battled in recent years. The reason
normally given is that national infrastructure programmes that were
expected to provide work after the 2010 World Cup did not materialise.
With slow growth, national freight and logistics company Transnet has
not been able to pursue its R300-billion infrastructure programme at the
speed that it wanted to.
Big names have either seen their share price drop sharply (Aveng),
their market capitalisation shrink (Stefanutti Stocks) or they have been
subjected to the business rescue process (Group Five, Basil Read and Esor).
Aspects of the Transnet programme, such as the acquisition of locomotives,
are going ahead and the expansion programmes of Gautrain and
the Passenger Rail Agency of South Africa (PRASA) are providing work.
Infrastructure spending has slowed, but not dried up entirely. One
province alone, Gauteng, spent R30-billion on infrastructure between
2013 and 2016. A further R46-billion has been pledged. In addition,
Gauteng municipalities will spend R94-billion using their city budgets.
A study carried out by KMPG found that spending on infrastructure
resulted in additional economic activity worth R26-billion and created
92 000 direct jobs. The Gauteng Freeway Improvement Project was
technically demanding and 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.
Marine repair and engineering form a significant sector in the Western
Cape and KwaZulu-Natal, with established companies such as EBH South
Africa offering comprehensive services. Both KwaZulu-Natal ports are
expanding (Durban is building a cruise-liner terminal and Richards Bay
is undertaking no fewer than 45 projects) and will continue to attract
engineers.
Dormac, which is headquartered in the Bayhead area of the Port of
Durban, is best known for its marine engineering but it offers specialised
services to the sugar industry and provides machinery for industrial giants
like Toyota and Defy.
ONLINE RESOURCES
Consulting Engineers South Africa: www.cesa.co.za
Engineering Council of South Africa: www.ecsa.co.za
National Department of Public Works: www.publicworks.gov.za
South African Consulting Engineering Firms: www.consultsa.co.za
Southern African Institution of Civil Engineering: www.civils.org.za
75 SOUTH AFRICAN BUSINESS 2020