Page 60

Transnet Pipelines owns, operates and maintains a 3 800km network of high pressure underground petroleum and gas pipelines. Established in 1965, the company plays a strategic role in the supply of petroleum products to South Africa's economic hub in Gauteng. Ta ensure security of supply, a new 24 inch Multi-Product Pipeline (MPP) was constructed and commissioned in 2012. Lennie Maadley, Chief Executive of Transnet Pipelines, discusses the latest milestone in the MPP project.

Is the Multi-Product Pipeline working to expectations? Yes, since it was brought into operation in January 2012 it has transported over 18 billion litres of diesel. We have now successfully brought it into multi-product operation. In addition to transporting two grades of diesel {D50 and D500) we are now transporting 93 and 95 unleaded petrol as well as jet fuel. Can you put a figure on the number of road trips (or number of tankers) that have been reduced because of the introduction of the Multi-Product Pipeline? Not directly as all modes of transport are required to service the market. pipelines are ideal for large volumes and long distance, whilst road and rail service other areas. We can however, say that if we did not have the Multi-Product Pipeline you would need an additional 1 ODO road tankers per day between Durban and Gauteng. What are current volumes of throughput in the various categories? The capacity of the line is 1 080 cubic metres per hour and the average

throughput is approximately 115 million litres per week. The volume split per product depends on weekly market demand and varies from week to week. Is TPL on target with regard to these volumes? The volumes are slightly behind target. but this is reflective of the lower demand in the market due to the slowdown of the economy. From a capacity and operational point of view TPL is able to meet the demand required by its customers. And the balance sheet? Pipelines is currently forecast to exceed financial targets in the 2017/18 year: • Revenue of R4.2bn • EBITDA margin of 74% • Return on assets of 6.7% • Asset base of R36bn excluding capital work in progress • Cash generated from operations of R3.lbn

KwaZulu-Natal Business 2018/19  

The 2018/19 edition of KwaZulu-Natal Business is the 10th issue of this highly successful publication that, since its launch in 2008, has es...

KwaZulu-Natal Business 2018/19  

The 2018/19 edition of KwaZulu-Natal Business is the 10th issue of this highly successful publication that, since its launch in 2008, has es...

Advertisement