It is essential that both public and private sectors get a strong understanding of their asset management maturity and develop a robust maintenance road map, Anton Booyzen, chairman of the Southern African Asset Management Association (SAAMA), says.
Municipalities in South Africa are responsible for managing and caring for infrastructure with a combined value of R1.156 trillion. According to a report by the Financial and Fiscal Commission, R80 billion would be needed over the next 11 years to deal with the current maintenance backlog in municipal electricity, water and sanitation infrastructure and to return it to optimum condition. The minimum required spend in current facilities is R12 billion over the next two years.
SAAMA’s Anton Booyzen explains that “depending on a company’s asset management maturity, its cost to deliver a product or service can be up to 25% higher than it should be every year. What makes this all the more alarming is that these extreme costs for large scale industry, utilities and municipalities have escalated dramatically when compared to only five years ago without a commensurate increase in service or product delivery and stands to worsen still unless these business’s act swiftly.”
“What’s more”, says Booyzen, “with the impending ISO 55000 accreditation set to replace the outgoing PAS55 in 2014, it is essential both public and private sectors get a strong understanding of their asset management maturity and develop a robust road map to deliver a joined-up, risk-based, whole life cycle asset management.”
Improved planning and consistent, prioritised and auditable risk management are just a handful of the benefits of optimised asset management that will be available at SAAMA’s inaugural asset management conference, hosted at African Utility Week & Clean Power Africa, taking place from 13 − 14 May 2014 at the CTICC in Cape Town.