OVERVIEW Engineering
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
out on the gold fields of early Johannesburg, was another Murray & Roberts company to be sold to the Southern Palace Group. It has a large plant outside Johannesburg at Wadeville and is involved in South Africa’s two biggest power station construction projects at Medupi and Kusile. Group Five also sold part of its business (Group Five Pipe) to a blackowned entity in 2017 but the most significant change came in the group’s structure. A stand-alone construction division for South Africa (where the company has more than 7 400 employees) is part of a drive by the company to focus on smaller infrastructure projects and to dispose of manufacturing assets. Like most large South African firms in the sector, Group Five has significant investments offshore. Transnet Engineering (TE) is in the process of changing its focus from only providing engineering services to other companies in the Transnet group to becoming a multi-faceted business. The company is exploring ONLINE RESOURCES Consulting Engineers South Africa: www.cesa.co.za Engineering Council of South Africa: www.ecsa.co.za Gauteng Department of Infrastructure Development: www.gauteng.gov.za Graduate School of Technology Management: www.up.ac.za/gstm Transnet Engineering: www.transnet.net OVERVIEW opportunities in Africa to provide maintenance, repair and overhaul services (MRO). As an original equipment manufacturer (OEM) with the ability to manufacture locomotives, rail wagons and coaches, TE is opening up a wide range of markets not only in South Africa but in Africa and the rest of the world. The Trans- Africa Locomotive is the first locally designed locomotive produced by TE in its Koedoespoort factory. There are seven business units located at Koedoespoort, including a foundry. contact details Registered Name Corpclo 2369 cc T/A Fluids Media Engineering (FM Engineering) FME, mechanical contractors and engineers, specialist industrial piping systems, steelwork and general mechanical works. Physical Address Unit No.3A, No.4 Hennie Steyn Street (Head office) Rosslyn, Pretoria, 0200 Republic of South Africa 1 Military road (East London office) Wood brook, East London, 5201 We add value through engineering solutions Republic of South Africa Postal Address, Suite 132 Private Bag x 121 Halfway House, 1685 Telephone +27 (0)12 751 7640 CONTACT DETAILS: Facsimile 086 538 5356 Mobile Tel: +27 +27 11 (0)72 057 5057 701 3932 Email Fax: admin@fluidsmedia.co.za 086 718 2325 Website Mobile: www.fluidsmedia.co.za +27 72 701 3932 Email: vuyo@fmeng.co.za Website: www.fluidsmedia.co.za BBBEE LEVEL 1, CIDB: 6ME PE
