Sasol reaps benefits of concession lines

It would be almost impossible for government to meet its rail infrastructure upgrade requirements without private sector involvement, which is why petrochemical company Sasol supports concession lines, having already reaped rewards since implementing them. “The private sector should get more involved and engaged in government infrastructure projects which will eventually be of overall benefit to the industry as a whole,” said Afzal Banoo, strategic sourcing manager: rail at Sasol. “Some private sector companies have expressed concern that the financial pay-offs for investing in rail infrastructure are very limited, but we place profitability as a secondary concern, looking at trade-offs such as security of supply, lower expenditure on rolling stock and increased exports,” he said. Banoo commented that Sasol had seen increased growth in sales and had been able to increase its investment, including investing in specialised chemical wagons. He added that one of the major benefits had been that Sasol was able to link its various plants with each other – without interruption – creating one big plant. “This has improved our production turnaround time and given us flexibility in our production, allowing us to deal with market booms and downturns,” said Banoo. INSERT & CAPTION We place profitability as a secondary concern, looking at trade-offs such as security of supply. – Afzal Banoo