ASSIGNMENT 5 2025
DUE: OCTOBER 2025 (MEMO)
, TRL3705
COMPULSORY ASSIGNMENTS
Open date: 2025-09-22
Due date: 2025-09-26
QUESTION 1.2: Pipeline Transport
1. Introduction
Pipeline transport plays an important role in the South African transport system,
particularly for the movement of petroleum products and natural gas between coastal
refineries and inland markets. It is one of the most efficient, safe, and cost-effective
means of moving bulk liquids and gases over long distances (Pienaar, 2010). Pipelines
provide a reliable alternative to road and rail transport for the energy sector and are
essential for maintaining the country’s energy security and economic stability.
2. Cost Structure of Pipeline Transport
The cost structure of pipelines is characterised by high fixed costs and low variable or
operating costs, resulting in significant economies of scale (Learning Unit 6; Pienaar,
2010). The major portion of total cost involves initial capital investment, including the
construction of the pipeline network, pumping stations, control systems, and
maintenance infrastructure.