Physical asset management is critical for South African
government to effectively manage the country's intensive
infrastructure development pipeline.
Collectively, this development will receive R3.2-trillion in
infrastructural investment, including the R845-billion allocated to
State-owned Companies for projects needing to be completed over the
next three years.
"Prioritisation of physical asset management", says Jackie van
der Westhuizen, e-Logics Director "will enable government to fulfil
its improved service delivery commitment".
He says sustained levels of investment into infrastructure
management can contribute to bringing down South Africa's high
total cost of transportation "which is far from being
At R262-billion, the current level of investment in transport
and logistics infrastructure alone must be well utilised if it is
to raise South Africa's competitiveness through more efficient and
cost effective movement of goods.
"Movement to rail is of importance in the context of consistent
investment into logistics infrastructure. Railways are the backbone
of any growing economy," he says.
Government departments, municipalities and State-owned
Companies, van der Westhuizen believes need a comprehensive asset
improvement programme. Particularly in light of them standing to
lose their capital allocations if this budget is misspent or
Effective management of physical assets, he adds improves
Operational Transparency. For government, better Operational
Transparency means the ability to quantifiably track and improve on
the performance of the country's assets.
"Physical asset management is often undervalued. It is the glue
that binds together an organisation that functions optimally,"
concludes van der Westhuizen.