Sustainable asset performance in government

finger touching screen

May 2012

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 competitive."

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 underspent.

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.