Project selection modelling for infrastructure investment programmes: the case of the Ports Authority, South Africa.

Abstract

The successful delivery of any infrastructure portfolio relies on prioritizing projects aligned to organizational objectives. The Ports Authority of South Africa, in pursuit to expand its gigantic infrastructural portfolio, requires appropriate project selection techniques that would attract capital investment. The aim of the study was therefore to explore the project selection techniques in planning for infrastructure development at the Ports Authority with the ultimate goal of setting up a project selection and prioritization model that encompasses the key selection criteria aligned to the Department of Public Enterprises, National Development Framework Plan and Port Strategy. In the past, poor project selection techniques lead to poor delivery, which rendered capital investments fruitless and wasteful thus eroding the confidence in the port’s performance and resulting in claw backs and tariff adjustments. The corporate plan was being used as a project prioritization tool and this was not aligned to international good practice. The study applied the mixed method Sequential Exploratory Design on a study population of 108 employees to identify the project selection criteria and develop the project selection and prioritization model as an outcome of the qualitative analysis. Thereafter the study used quantitative analysis to test the model in improving investment decisions at the Ports Authority. The qualitative data was collected from the six (6) respondents purposively selected from twenty (20) senior managers. The quantitative data was collected from 58 respondents randomly selected from the study population of 108 employees. The mixed method analysis triangulated findings from the qualitative and quantitative analysis in proving the hypothesis that project selection criteria did influence project selection and prioritization for improved investment decisions at the Ports Authority in South Africa. The study recommended improvements to capital approval processes, remedies for project performance monitoring and training of employees. Response plans were proposed to guide the organisation on when and how to respond to triggers. The study demonstrated how portfolio theory could be enhanced and adapted for state-owned enterprises to align with the strategic objectives of the organization as opposed to having purely financial focus; thereby making infrastructure investment decisions more lucrative to all stakeholders.