TRANSPARENT TRANSNET’S IN-HOUSE JOURNAL JUNE-JULY 2004 EDITION

Ramos beefs up executive team PAGE 6 PAGE 12 PAGE 26 Our top stories

EDITORIAL ...... 3 The Editors look at topical issues EXECUTIVE MANAGEMENT...... 4-5 Group Chief Executive Maria Ramos strengthens her executive team COMMUNITY INVOLVEMENT ...... 6 Transnet comes to the aid of Aids orphans SOEs...... 7 Minister Alec Erwins spells out the way forward ACHIEVEMENTS (1) ...... 12 Phelophepa’s Dr Lynette Coetzee wins top Commonwealth healthcare award ACHIEVEMENTS (2)...... 14-15 NPA scoops prestigious environmental award ACHIEVEMENTS (3)...... 22-23 Three top Transnet women executives among most powerful women in SA CSI...... 26&29 Transnet Foundation continues to make a difference in disadvantaged communities

CONTRIBUTORS IN THIS EDITION: Sy Makaringe, Enoch Lehung and Robert Magwaza

LAYOUT AND DESIGN: Ambani Communications

PHOTOGRAPHS OF GCE MARIA RAMOS IN THIS EDITION COURTESY OF LEADERSHIP MAGAZINE

TransParent• Autumn 2004 • 2 EDITORIAL TRANSNET VISION: Africa’s undisputed world champion in transport and logistics solutions

Full steam ahead +

he restructuring of the Transnet Group main business units, did us extremely proud executive team, which now includes the recently when, in its first attempt, it scooped + Tchief executives of four of our major the coveted Mail & Guardian’s Greening the business units, marks the beginning of a Future award for the Most Improved new and exciting era for the organisation. Environmental Practice, the first state-owned We are confident that the team’s collec- enterprise to be bestowed with such a pres- tive intellect, talent, experience and exper- tigious honour. tise, mix of qualifications, outstanding busi- In another first, Dr Lynette Coetzee, + ness acumen, extensive business knowl- Transnet Foundation’s Senior Manager: edge and exceptional leadership skills will Health and initiator of Phelophepa health- propel the organisation to new heights as care train, hoisted Transnet’s flag high when the government increasingly looks to it to she was presented with the inaugural Queen + play a key role in the country’s economic Elizabeth Medal for her commitment to the growth. provision of basic healthcare in South As Group Chief Executive Maria Ramos Africa’s disadvantaged communities. says, the strengthened corporate structure Such outstanding achievements make will not only allow a clearer focus on critical one proud to be a Transnet employee. operational and financial issues but it will NPA’s achievement underlines the whole + also strengthen overall management effec- Group’s commitment to the protection and tiveness. preservation of the environment. Similarly, The restructruring is an important step Coetzee’s recognition demonstrates the that will turn Transnet into a highly competi- company’s deep concern about the well- tive, responsive and efficient transport and being of the country’s disadvantaged individ- + logistics company fully geared to deliver on uals. the government’s socio-economic mandate. We take our hats off to both the NPA and But there can be no doubt that the team, Coetzee for having been such excellent which has been further bolstered by the ambassadors of Transnet. appointment of two additional group execu- Let’s all follow their example and make + tives, faces a daunting task in its efforts to Transnet an excellent company to work for. position the Group as a catalyst for econom- This edition is, just like other editions ic growth. The challenges will be enormous. before it, packed with interesting sto- The road ahead will be bumpy and rocky. But ries aimed at bringing you up to if all of us can put our shoulders to the speed with the developments + wheel, and support all the group executives taking place within the Group. in all their endeavours to the best of our abil- We hope you will, as usual, ities, there can only be one outcome: suc- give us feedback on the cess. product. Elsewhere in this edition we report on two For now, just sit back + developments that have again put Transnet and enjoy what we at the highest echelons of excellence. have prepared The National Ports Authority, one of our for you.

Editors: =

Tami Didiza Carel Mulder (011) 308-2458 (011) 308-2457 083 286 2833 083 292 0947 [email protected] [email protected]

TransParent• June-july 2004 • 3 EXECUTIVE MANAGEMENT

Dolly Mokgatle ... Tau Morwe ... SA Charl Möller ... Siyabonga Gama ... Sindi Mabaso ... Kgomotso Spoornet Chief Port Operations Petronet Chief National Ports Transnet Chief Phihlela ... Group Executive Officer. Chief Executive Executive Officer. Authority Chief Financial Officer. Executive: Officer. Executive Officer. Portfolio Management. Ramos beefs up

ransnet Group Chief Executive Maria Director General of the Treasury and Chief Ramos has restructured her executive Executive of Gauteng Provincial Government’s Tteam as part of a series of reforms Blue IQ project, joins Transnet as Group designed to make the Group responsive Executive: Strategy and Transformation with to the needs of its customers and effect from July 1. entrench itself as a catalyst for He will focus on corporate strategy develop- South Africa’s economic growth ment and transforming Transnet across all lev- in line with government objec- els of the organisation into an integrated trans- tives. port and logistics company. Efficiency and sharper focus Vuyo Khahla, who was until recently of its core business are other Director: Corporate Governance & Legal major reasons for the restructuring. Services at Stanbic Africa, has been appointed Ramos bolstered the executive as Group Executive: Legal. He will be responsi- committee with the inclusion of four ble for handling compliance and governance chief executives of Transnet’s main issues as well as litigation. divisions – Dolly Mokgatle "The strengthened corporate structure (Spoornet), Tau Morwe (South African allows a clearer focus on critical operational Port Operations), Charl Möller and financial issues and will strengthen overall (Petronet) and Siyabonga Gama management effectiveness. The upcoming (National Ports Authority). financial results will reinforce the need for this The move to strengthen the executive focus," said Ramos. team includes the creation and filling of two She said the inclusion of Mokgatle, Morwe, additional portfolios at the group execu- Möller and Gama in the top decision-making tive level. forum in particular would strengthen manage- Pradeep Maharaj, for- ment processes and ensure adherence to cor- mer acting head of porate governance from top down in the the Gauteng group’s core business units. Transnet Group Department of There will now be eight group functional Chief Executive Finance and areas, including Portfolio Management under Maria Ramos. Economic Kgomotso Phihlela, Corporate Services under Affairs, Deputy- Riah Phiyega, Human Resources under Ziyanda

TransParent • June-July 2004 • 4 EXECUTIVE MANAGEMENT

Riah Phiyega ... Ziyanda Danana ... Papi Moletsane ... Bax Nomvete ... Pradeep Maharaj ... Vuyo Khahla. ... Group Executive: Group Executive: Group Executive: Chief Information Group Executive: Group Executive: Corporate Human Resources. Logistics & Officer. Strategy and Legal Services. Marketing. Transformation executive team

Danana and Logistics & Marketing under will focus on managing the image, reputa- Announcing the Papi Moletsane. tion and stakeholder relations of the Group. changes, Ramos "While primary responsibility for the As Group Executive: Human Resources, said the new execu- Group financial function resides with me as Danana oversees group human resources, tive structure would the Group Chief Executive, Sindi Mabaso the Esselenpark Centre of Excellence and enhance leadership will, as Chief Financial Officer, continue to benefits from Transmed and Transnet effectiveness in concentrate on group finance, tax services Retirement funds.Logistics & Marketing what "is a very large and risk management," said Ramos. The Group Executive Molotsane will be responsi- and complex organi- Treasury unit will report directly to Ramos. ble for Propnet, Metrorail, Transwerk, pro- sation". Bax Nomvete is Chief Information curement policy and supply, Viamax, B2B The changes, Thiru Pillay ... Officer. Thiru Pillay remains head of the Africa and arivia.kom. He will concentrate on triggered by new Head of the Group Internal Group Internal Audit function. His responsi- supply chain and customer relationship business chal- Audit function. bilities will also include the old Forensic management. lenges, represent a Audit unit. As Group Chief Information Officer, move away from the Phihlela, Group Executive: Portfolio Nomvete will be responsible for Group IT "silo approach" towards a more integrated Management, is responsible for Autopax, functions, focusing on policy and systems system aimed at providing an efficient trans- freightdynamics, Transtel, Transnet while building and maintaining a strong IT port network, total logistics solutions and efficient import-export conduits to facilitate integration of Transnet’s trade. "I am confident that the restructuring at the top level is an Ramos said the overall result of the important step in making Transnet a competitive company with restructuring would be stronger control and reduced costs and increased efficiencies." -- Ramos. clearer focus, leading to more responsive and efficient executive management. "I am confident that the restructuring at Housing, aviation, property, funds and skills pool. the top level is an important step in making Marine Data Systems. "The enormous task of turning Transnet Transnet a competitive company with Phiyega, Group Executive: Corporate towards positivity will be driven by each and reduced costs and increased efficiencies. It Services, is responsible for internal and every member of this executive team. They will enable stronger executive management external relations, including Group commu- will be responsible for evaluating and deliv- control and clearer focus, leading to a more nications and parliamentary liaison; corpo- ering operational and financial growth responsive and efficient organisation," she rate services and Transnet Foundation. She against key performance criteria. concluded.

TransParent• June-July 2004 • 5 HIV/AIDS Transnet’s stretches its helping hand to orphans

s the HIV/Aids pandemic continues to decimate South African communi- Aties at a frightening rate, Transnet has again thrown its weight behind new and innovative efforts aimed at dealing effec- tively with the disease’s devastating social effects. Recently the company, which for many years has been at the forefront of the fight against HIV/Aids, donated R300 000 to the Transnet-Noah Resource Centre. The Centre, one of several run by the non-profit making Nurturing Orphans of Aids for Humanity (Noah), seeks to help the Transnet Chairman Dr Bongani Khumalo (back row, third from right) with increasing number of Aids orphans in Ivory some of the guests and orphaned children at the cheque handover ceremony. Park "grow up into emotionally and psycho- ease. Transnet for its "positive contribution" to logically stable adults and responsible citi- "We know that the government is doing the needs of the Centre. zens". everything it can to beat HIV/Aids. This "This contribution will ensure that the Speaking at the handover ceremony, nation has the most comprehensive strate- Centre survives to serve the community of attended by local councillors, community gy to combat this challenge. And because Ivory Park. These kids who are accommo- leaders and volunteers, Transnet Chairman of the enormity, urgency and severity of dated here are our own kids. The women Dr Bongani Aug Khumalo said as a state- HIV/Aids, we have to throw our lot into the volunteers you see here are filling the void owned enterprise it was natural for his com- campaign. This is our war!" Khumalo said. left by their blood parents. To all of us, they pany to play a serious part not only in "As an oganisation, we care. Each of are not orphans; they are our children," poverty alleviation and socio-economic the 77 000 people working for Transnet Kubu said. upliftment of poverty-stricken communities, must ask themselves the question: how The key focus of Noah, which is run as defeating the source of HIV/Aids was also can I lend a hand in the fight against a non-profit franchise operation, lies in part of its mission. HIV/Aids? If we display such commitment, mobilising communities and empowering He praised Noah, which has resource I have no doubt that we will be able to them with the strategies, tools and self-con- centres known "Arks" in KwaZulu-Natal and break the back of HIV/Aids?" he said. fidence to care for orphans in their midst. Gauteng, for basing their work on the noble Khumalo expressed concern at the dis- Its resource centres, which are usually principles of Ubuntu in their effort to ame- crimination against and stigmatisation of located in the vicinity of pre- and primary liorate the conditions of the children people living with HIV/Aids. He commended schools, provide the orphaned children with orphaned by Aids and nurture them to grow Noah for the excellent job it was doing to balanced meals, homework supervision and become productive and responsible cit- eliminate these prejudices. and access to counselling, sporting facili- izens. He dismissed perceptions that HIV/Aids ties, libraries and computers. “Noah is doing a commendable job only affected certain sections of the com- The organisation also encourages all because it affords all of us the opportunity munity. the resource centres to come up with their to express our shared or extended parent- "There was a time when certain people own income-generating projects to ensure hood for the benefit of all affected. This considered themselves unaffected by they are sustainable and add value to local means that in effect though some of the HIV/Aids. There is no more denying the communities. young ones lose their biological parents, no reality that we are all affected by HIV/Aids. Some of Noah’s donors include child is altogether an orphan. Lapho Infected you may not be; affected we all Deutsche Bank Foundation, Coca-Cola, kunoBuntu khona ayikho intandane. Your are. Nobody is unaffected by this plague as Anglo American Chairman’s Fund, Old child is my child -- all children belong a matter of fact,” said Khumalo. Mutual, JSE Securities Exchange, Vodacom always,“ Khumalo said. Julia Kubu, local councillor and member Foundation, Rockefeller Brothers Fund, He urged all South Africans to spare no of the committee governing the Transnet- Bidvest and the South African Sugar effort in the fight against the dreaded dis- Noah Ark in Ivory Park, commended Association.

TransParent• June-July 2004 • 6 STATE-OWNED ENTERPRISES Minister spells out the way forward

n his first Budget speech as Public "We are not starting from scratch but Enterprises Minister, Alec Erwin clarified completing work commenced by the previous ITransnet’s future position when he told administration. The September deadline for Parliament that the company would, along the financing strategy will require that we with Eskom and Denel, remain a state-owned have clarity on the policy and corporate struc- enterprise (SOE). tures by then. In regard to the latter, there is The Minister said in South Africa, as in work already in hand, such as the recent most countries, the government had moved announcements by Spoornet," Erwin said. from entities that were functional agencies of On the Durban Container Terminal (DCT), state, and understood within the logic of fis- Erwin said he had already commenced dis- cal policy, to enterprises that had to be under- cussions with the Department of Transport stood as corporate enterprises. and Transnet to reach agreement on certain "In the first few years after 1994, we Alexander Erwin, Minister of Public technical aspects of the National Ports Enterprises. focused on making the entities we had inher- Authority Bill. ited into enterprises, (a process) usually petition within a regulated system. Clearly, "We will table the Bill once again at the referred to as corporatisation. In the case of some degree of competitive pressure is use- earliest opportunity and by the end of this Transnet, the previous regime had moved to ful as it provides an inducement towards effi- year we should be well advanced in the bring- corporatise it in 1990 but had left a very cum- ciency and acts as a check on rent seeking ing in of a private partner into the DCT," the bersome structure saddled with a large debt behaviour." Minister said. in the pension funds. He said the Department of Public On black economic empowerment, Erwin "With Telkom and South African Airways, Enterprises’ objective for the next five years said his department would work in conjunc- we needed partners that could take them out was to locate Transnet, Eskom and Denel tion with the Department of Trade and of being funded utilities into enterprises that within a system of public-private partnerships Industry to achieve a "uniform and har- could compete on the managerial and tech- (PPPs) where they could play pivotal and deci- monised approach to BEE on the part of the nology terrain. We had to develop new regu- sive roles. SOEs in the DPE fold". latory structures. We also found many enter- Simultaneously, the government would "As envisaged in the Broad-Based Black prises where there was no economic logic to ensure policy certainty with the responsible Economic Empowerment Act, we will focus having them in the public sector. We moved policy departments, finalise the appropriate our attention on advanced skill and manager- to sell them to private interests." corporate structures, establish a coherent ial cadres, procurement and enterprise devel- Erwin said an SOE needed to have a clear and sustainable financing strategy and move opment in the SOEs. The size of the SOEs public strategic purpose based on an eco- to implement, where appropriate, conces- means they have a very significant role to nomic and financial calculation in relation to sions, joint ventures and PPPs. play," he said. the likely conduct of the private sector and FACT FILE South African Trade Unions the public needs society and economy had. Alexander Erwin 1983-1985: Education Secretary, Federation of "It needs to be capable of generating a Minister of Public Enterprises since 29 April South African Trade Unions revenue stream that can establish a viable Academic qualifications 1986-1988:Education Secretary, Congress of balance sheet. But in doing all of this it can- 1978: Bachelor of Economics (Honours), South African Trade Unions not detrimentally affect the working of the University of Natal, Durban 1988-1993: National Education Officer, National rest of the economy. It cannot ‘cherry pick’. It Career/positions/memberships/other activi- Union of Metalworkers ties 1989: Interim executive member, ANC Southern is for these reasons that Eskom, Transnet 1971-1978: Lecturer, Department of Natal region and Denel will remain as SOEs," he said. Economics, University of Natal 1990-1991: Branch executive member, ANC Erwin added that the government was 1974-1975: Visiting Lecturer, Centre of Western Areas branch entering a phase where it had to make SOEs Southern African Studies, University of York May 1994-April 1996: Deputy Minister of work with the private sector in search for 1973-1975: Member of Institute of Industrial Finance of the Republic of South Africa world-class levels of efficiency and capacity. Education 1996-2000: President of the United Nations "As we bring in the private sector, we 1977-1979: General Secretary, Trade Union Conference on Trade and Development need to briefly look at the question of com- Advisory and Co-ordinating Council 4 April 1996-28 April 2004: Minister of Trade 1979-1983: General Secretary, Federation of and Industry

TransParent• June-July 2004 • 7 SPOORNET It’s all systems go at Spoornet

poornet, Transnet’s rail utility, has sionals. ings, the company has developed a begun to aggressively and vigorous- To be implemented over five years, the Customer Relationship Management Sly implement its wide-ranging inte- far-reaching strategy consists of three (CRM) strategy that focuses on key areas grated strategy as the company seeks to phases: mobilisation (2004-2005), devel- such as customer and service segmenta- reclaim its position as a key player in the opment (2005-2007) and value extraction tion and joint road-rail offerings. South African economy with the neces- (2007-2009). Through the customer segmentation sary capacity to meet the government’s Through the plan’s mobilisation plan, customers will be divided into three growth and development objectives. phase, which is already well under way, different categories, allowing contractual The business plan, described as the the company has started tackling all relationship, pricing regime and business most comprehensive yet, has already operational limitations with the aim of approach to vary for each. been given the green light by both achieving acceptable customer service "We’re now offering a differentiated ser- Transnet and Public Enterprises Minister delivery levels, high safety performance, vice to our customers based on their rev- Alec Erwin. It has also been enthusiasti- operational profitability, efficiency and enue and traffic patterns. We will also cally and positively received by other key attraction and retention of skills. ensure full and continuous service through stakeholders – among them major cus- "There will be some pain and short- joint road-rail offerings. Simply put, base tomers, labour and employees – following term sacrifice. But because we’re com- load traffic will be conveyed by rail and the a number of high profile briefing sessions mitted to the future of our company, we variable peak demand will be covered by led by Chief Executive Dolly Mokgatle over believe that the gains will far exceed any road. the past few weeks. short-term hardships. We are also fully Mokgatle says customer collaboration Key to the strategy is performance committed to the notion that things must was key to Spoornet’s plans. enhancement through operational excel- change, and change with speed," says "To this extent, Spoornet will actively lence. The plan aims to turn Spoornet into Mokgatle. exploit all value adding opportunities that a highly profitable business with a healthy During the next two years, Mokgatle allow it to optimise resource utilisation balance sheet able to fund its long-term and her team will be working relentlessly and productivity within rail and the total supply chain. Through collaboration with customers, the company aims to achieve "We are grateful to all our stakeholders for relentlessly ‘tailor made’ service offerings closely reminding us of our responsibilities and for keeping us on our linked to customer and industry demands toes." -- Dolly Mokgatle. and market sophistication," she says. The company’s pricing strategy, which has previously been a source of dissatis- growth. It also seeks to put the company to change Spoornet’s poor image that faction and frustration among customers, in a position where it can offer excellent saw it being perceived as "an unpunctual, will now be geared towards a structure customer service, achieve operational inflexible, inefficient and costly" state- that is in accordance with market princi- excellence, attain superior safety stan- owned enterprise. On top of the agenda ples and differentiated customer service dards, add demonstrable shareholder will be improvement of customer service requirements. value and be a worthy player in profitable delivery, a key to growth and profitability. Contracting regimes with customers, logistics supply chains. Mokgatle says Spoornet is fully aware says Mokgatle, will reflect service mixes, To ensure that the plan is effectively of its shortcomings in this area, for which differentiated treatment and asset life- implemented, Mokgatle has transformed it received a lot of flak from disgruntled cycle requirements. her top management team, which she fur- customers in the past. On operational efficiency, Mokgatle ther bolstered when she added four more "We are grateful to all our stakehold- says the company will use the "tried and key portfolios to the already existing six ers for relentlessly reminding us of our tested" 3TC model to provide distinctly General Manager positions. Two of the responsibilities and for keeping us on our different service offerings to customers new positions have already been filled by toes," she says. and the "corridor" operating concept to highly qualified and competent profes- To adequately tackle these shortcom- optimise the routing of traffic and

TransParent • Spring 2003 • 8 Spoornet’s Chief Executive Dolly Mokgatle (seated) with (standing, from left) Harry Mashele (GM: Corporate Strategy, Leadership & Compliance), Percival Mosweu (GM: Engineering & Technology), Tshidi Nyama (GM: Customer Care & Solutions), Ravi Nair (GM: Network Operations Centre), Herman Evert (GM: Service Delivery Zones) and Abner Mofokeng (GM: Change Management). resources between inland and the ports. process of implementing the recommen- "appropriate quantity, quality and mix of Mokgatle says she is confident that the dations of a Safety Gap Analysis com- skills, experience and qualifications", two concepts "will deliver a predictable missioned by Mokgatle in November last Mokgatle recently, appointed Freddy service at a lower cost". year. Mohlaka as General Manager: Legal On the question of capital investment, "We’re developing a single, integrated Counsel and Althaf Emmamally as Spoornet plans to invest R14 billion dur- safety management system which will General Manager: Finance and Business ing the next five years, 90% of which will ensure that all policies take full regard Services. The two join the already exist- go towards the rehabilitation and renewal for safety, and assign responsibility to ing top management team comprising of infrastructure, locomotives and wag- line management to facilitate action. herself as CE, Tshidi Nyama (GM: ons. We’re confident that this will ensure safe Customer Care & Solutions), Herman To increase profitability, a key to working practices," she says. Evert (GM: Service Delivery Zones), Ravi future sustainability, the company has Mokgatle says, however, that the suc- Nair (GM: National Operations Centre), embarked on a three-pronged action plan cess of the business plan hinges on a Percival Mosweu (GM: Engineering & involving the repositioning of customers motivated and skilled workforce. To this Technology), Harry Mashele (GM: according to volume and revenue, pricing end, the company has introduced a new Corporate Strategy, Leadership and and cost containment; reduction of cost Human Capital Programme to attract and Compliance) and Abner Mofokeng base by sweating human assets and the retain skills it requires. (Change Management). deployment of staff to ensure optimum According to Mokgatle, the company Another important appointment was utilisation of skills. will also re-skill and restructure the work- that of Lloyd Tobias, who assumed his "Natural attrition will contribute to our force, develop critical skills, build pride duties as Executive Manager: efficiency drive. Where absolutely neces- and confidence among employees and Governance and Secretariat. The compa- sary, plans will be developed in conjunc- introduce innovative operating practices. ny is still seeking suitable candidates to tion with labour and our shareholder (the Mokgatle transformed her executive fill the Information & Business government) to achieve greater levels of team, the main driver of the business Architecture and Human Capital streams. human resources efficiencies," Mokgatle plan, by introducing eight principal work "People resilience will be an integral says. streams. part of this strategy," concludes On safety, the company is in the Recognising that the plan will require Mokgatle. TransParent • Spring 2003 • 9 SOUTH AFRICAN AIRWAYS SAA, Virgin in landmark deal outh African Airways (SAA) and Virgin quality of service throughout the journey. Atlantic Airways have entered into a "Following the announcement that the Scommercial co-operation that includes Soccer World Cup will be held in South Africa a Codeshare Agreement and a fully reciprocal in 2010, Virgin Atlantic looks forward to Frequent Flyer Programme partnership. working with SAA to provide fans with a The codeshare – which will enable pas- seamless journey to all the matches." sengers travelling on Virgin Atlantic services Virgin Atlantic offers a daily service between London and Johannesburg to con- between Heathrow and Johannesburg on a nect onto SAA and feeder airlines to numer- year round basis and three weekly services ous destinations in South Africa, including between Heathrow and Cape Town during the Cape Town, Durban, Port Elizabeth, UK winter season. The airline’s revolutionary Mpumulanga (Kruger Park) and Pilanesburg Upper Class Suite will be operating on South (Sun City) – will come into effect on October Africa routes later this year. 31 this year. SAA President and CEO André Viljoen. Since it was founded in 1984, Virgin Virgin Atlantic passengers will also bene- rise in the number of passengers travelling Atlantic Airways has become Britain’s sec- fit from convenient connections onto South on SAA in the domestic market. SAA will also ond largest long haul carrier serving the African Airways’ extensive pan-African net- be able to offer a reliable network reach to world’s major cities. Now based at London’s work, although these services will not initial- Virgin Atlantic passengers, thus enhancing Gatwick, London Heathrow and Manchester ly form part of the Codeshare Agreement. South Africa as one of the world’s foremost airports, Virgin operates long haul services The Frequent Flyer Programme partner- business and leisure destinations. to 22 destinations worldwide, and reaches ship will offer reciprocal benefits to members "We’re also looking forward to future co- cities such as Las Vegas and Shanghai. of both Virgin Atlantic flying club and SAA operation that will include a possible part- SAA, founded in 1934, is Africa’s leading Voyager programme, meaning that miles can nership on the Cape Town-London route." airline and flies to more than 20 destinations be accrued and redeemed on the services of Virgin Atlantic Commercial Director Willy across the African continent and 34 cities in either airline. The loyalty programmes from Boulter commented: "We’re delighted to 26 countries on six continents and carries both airlines are renowned as the most gen- announce this new commercial agreement more than 6,5 million passengers a year. erous in the industry, offering more miles with SAA. Our passengers travelling to ● Viljoen has since resigned. Deputy CEO and great rewards with its partners. Johannesburg will benefit from convenient Oyama Mabandla has been appointed acting SAA President and Chief Executive Officer connections to a number of domestic and SAA President and CEO with effect from 1 André Viljoen said: "The codeshare will see a regional destinations and the great value and September 2004. SAA Technical achieves a world first

SAA Technical, the largest aircraft mainte- ious types of aircraft, including Boeing 747s This took up to four days whereas the multi- nance facility in Africa, has launched a state- and Airbus A330 and A340 aircraft as well as purpose docking system can be positioned or of-the-art multi-purpose docking system. McDonnell Douglas MD-11s. removed within four hours. "This multi-purpose docking system is the This acquisition will significantly reduce As a further innovation, SAA Technical only facility of its kind in the Southern the number of days needed to complete a D- has built interior workshops on the mezza- Hemisphere and entrenches us as a global check during which an aircraft undergoes nine level of hangar 8. These interlink with player. It improves our service levels to stringent inspections, major modifications the docking system, saving time and reduc- South African Airways (SAA), our main cus- and structural repairs. ing damage due to unnecessary transporta- tomer, and positions us to attract more for- The multi-purpose docking system runs tion. The avionics and sheet metal workshop eign customers," says SAA Technical on rails and can be positioned to provide and the paint shop have also been moved Executive Vice President Rinesh simultaneous access to most areas of the closer to hangar 8. Ramkissoon. aircraft. Prior to this innovation, SAA "The docking system, combined with the This multi-million rand investment has Technical had to use stackers or scaffolding close proximity of the workshops, is a world been designed to provide easy access on var- to reach the different areas of the aircraft. first," says Ramkissoon.

TransParent • Spring 2003 • 10 A Virtual Care pharmacy at Transnet’s Corporate Centre in Johannesburg. Employees empowered

he recent R6, 2 million management-led period. This expansion and growth will mainly be buyout of Virtual Care pharmacies, Of significance is that the transaction will driven by the imperatives of government to Twhich were identified for disposal four result in the emergence of the first black-con- make healthcare, particularly pharmaceutical years ago as part of Transnet’s restructuring, trolled pharmacy network in the country. It services, available and affordable to all will significantly transform the ownership of will also improve the availability of profes- South Africans. the retail pharmaceutical industry in South sional pharmaceutical services to historically Virtual Care has already obtained Africa. marginalised communities. licences from the Department of Health and In terms of the deal, the current Virtual Virtual Care comprises largely dispen- the South African Pharmaceutical Council to Care pharmacists will acquire a 65% interest saries and specialises in providing cost-effec- trade in the open market. in the business operations while historically tive chronic medication to Transmed Fund Transnet will continue to support SATS disadvantaged individuals (HDIs), mainly members. pensioners and provide current benefits to pharmacists, will get the rest. With a national footprint, Virtual Care junior employees of the larger group. Virtual Care, which was was identified for boasts strong and well-established relation- Certain employees will be able to qualify offloading in 2000 after it was considered to ships with wholesalers and manufactures. Up for "early retirement". be a non-core asset of Transnet, employs a until the end of 2003, Virtual Care was Transnet employees belonging to other total of 270 people, of whom almost half are responsible for the running and managing of medical aid schemes are urged to use Virtual pharmacists. Of the 270 employees, 176 are Phelophepha, Transnet’s health train. Care pharmacies in support of its restructur- HDIs while the executive management is 62% In terms of the Legal Succession Act to ing initiatives and leverage on better prices black. the South African Transport Services (SATS) that they provide. A trust has also been created for junior Amendment Act 43 of 1995, Virtual Care A principled agreement, which is still to employees to participate in the ownership of pharmacies were only permitted to service be signed, has been reached between labour the new business, which will be at least 70% Transnet employees. This landmark transac- and Virtual Care on benefits to be offered. black-owned and black-managed. tion will now open up the market for Virtual In terms of the agreement, the current The sale has been approved by the Care to provide sales to the general public. benefits regarding transportation and some Competitions Commission. Labour has also With the Transmed Fund having commit- leave will be sacrificed by Virtual Care given its full support for the transaction, ted itself to continuing to support it within its employees. This is in lieu of the equity in the which includes a moratorium on retrench- own regulatory framework, the new business company. The benefits were determined over ment for a period of at least three years, with is well positioned to rapidly expand its activi- a two-year period as a quid pro quo for non- a best endeavour commitment for a five-year ties within the healthcare industry. retrenchment of employees for three years.

TransParent• June-July 2004 • 11 ACHIEVEMENTS Top Commonwealth award for Coetzee

r Lynette Coetzee, who initiated derived from Sesotho and Setswana for funded by the foundation. Additional sec- Phelophepa, Transnet’s mobile good, clean health, as "an enigma". ondary sponsorship is given by many part- Dhealthcare clinic, 10 years ago, was "From a small project, the train has, ners, both locally and internationally. ariv- hugely rewarded for her commitment to the through sheer desperate demand, grown ia.kom is one of the significant local part- provision of basic healthcare in South into a very large undertaking, impacting on ners supplying the train with information Africa’s disadvantaged communities when the lives of millions of people. technology systems. she was presented with the Royal Society "While South Africa has seen a tremen- International and multi-national spon- for the Promotion of Health’s inaugural dous improvement in the daily lives of peo- sors include Roche Products, Canon Queen Elizabeth Medal in London recently. ple since the country’s first democratic Collins Educational Trust for Southern Her Majesty Queen Elizabeth this year election in 1994, people’s needs still out- Africa (UK), One to One Children’s Fund gave the Royal Society for the Promotion of strip the provision of healthcare services (UK), Rotary, 3M South Africa and Health (RSPH) permission to introduce the in the remote, poorly-resourced and far- Colgate-Palmolive Foundation. new award to mark the society’s 100 years flung regions of the country.Phelophepa The main aim of the train is to address of royal patronage. takes advanced medical and information primary healthcare needs in communities The medal will from now on be awarded technology into communities where some where the historical disparity in healthcare annually to encourage and recognise indi- children have never ridden in a car, and provision is the greatest. viduals who make an outstanding contribu- never seen television. Yet, whole commu- "The Phelophepa Train is special in tion to public health within the nities welcome the train as though it is an many ways: it draws together many diverse Commonwealth. old, familiar and trusted family friend. The stakeholders from the private and public The RSPH is United Kingdom’s largest train is my passion, and its effects never sectors, and the staff provide not just the public health organisation completely inde- cease to amaze me." human touch but also the psychological pendent of government. Phelophepa is healing that the people of our country Its members are academics, health the flagship project need," says Coetzee. professionals and practitioners who of the Transnet She and her team are responsible for share an interest in promoting health Foundation, marketing and communications, strategic through their daily work and who, Transnet’s cor- planning, financial and project manage- through their membership, come togeth- porate social ment and all the operational activities of er to provide crosscutting and multidisci- investment arm. Phelophepa, liaising regularly with training plinary perspectives on current health It is primari- institutions for manpower, national and questions. ly international supporters and the The inaugural medal was pre- Department of Health. sented to Coetzee, who is Senior Coetzee runs Phelophepa as a Manager of Transnet strict business concern, and has Foundation’s health portfo- shown that such projects can be lio, by Prince Philip, the run in a cost-effective and Duke of Edinburgh, at a financially accountable function held at manner. Claridge’s, London. The 16-coach train began RSPH Chief operating as a mobile pri- Executive Stuart mary healthcare clinic in Royston said the soci- 1994. The train, which ety was delighted that comprises eye, health Coetzee was able to and dental clinics with attend the awards cer- X-ray facilities, has emony. reached more than 1,2 In her acceptance million individuals speech, Coetzee described since its inception 10 Phelophepa, a hybrid name Phelophepa founder Dr Lynette Coetzee addresses years ago. dignitaries at Claridge’s, London. TransParent • June-July 2004 • 12 PHELOPHEPA

Part of the famous Phelophepa healthcare train. Phelophepa ‘to cast healing mission wider’

hile Phelophepa founder Dr Lynette Maluleke, head of the Transnet Foundation, for equipping the train with state-of-the-art Coetzee was in London regaling an Transnet’s corporate social investment arm, communications and information technology Wappreciative audience of distin- told the audience that the company and its systems respectively. guished British health professionals with partners had, through Phelophepa, been Transnet Foundation is responsible for wonderful stories about the train, represen- able to positively touch the lives of people in funding the day-to-day operations of tatives of some of the train’s stakeholders poor communities by taking affordable pri- Phelophepa. in South Africa – including Transwerk, mary healthcare to them. Since the beginning of the year, the 16- Transtel and information technology compa- "We believe the future of the Phelophepa coach mobile clinic has registered and treat- ny arivia.kom – were in Bloemfontein show- depends entirely on the people of South ed more than 26 000 patients in some of casing its four refurbished carriages. Africa. We at Transnet Foundation want to the country’s rural areas. Its counselling The fact that Phelophepa was under the assure you that we will, through workshops reached more than 12 000 peo- spotlight at two separate functions in two Phelophepa, cast our healing mission to a ple while 75 000 schoolchildren have been countries – one in Africa and the other in wider society," Maluleke said. screened and educated. Europe – on the same day goes to show how Transwerk, Transnet’s carriage building The train, which celebrates its 10th iconic the Transnet mobile clinic, which pro- business unit, carried out the refurbish- anniversary this year, has covered a total of vides comprehensive, affordable and acces- ments on four of Phelophepa’s coaches more than 4,5 million kilometres since its sible healthcare services in South Africa’s since June last year. inception in 1994. disadvantaged rural areas, has become. Transtel, a Transnet telecommunications It visits 36 railway stations throughout In the Bloemfontein function, Eunice subsidiary, and arivia.kom were responsible the country every year.

TransParent • June-July 2004 • 13 ENVIRONMENT Serious about

he National Ports Authority (NPA) emerged as one of South Africa’s shining stars in the environmental stakes recently when it clinched Tthe coveted Mail & Guardian’s Greening the Future award for the Most Improved Environmental Practice. In presenting the award, the eight-member panel of judges, chaired by Saliem Fakir, Director of the South African Office IUCN-The World Conservation Union, commend- ed NPA for making a significant attempt to address complex environmental problems associated with its business. The panel was also impressed with the major advances the authority was making to improve its environmental impact and the rehabili- tation of past degradation. Supported by Chief Executive Officer Siyabonga Gama and all seven port managers, the company’s environmental policy was also found by the judges to be "a comprehensive state- ment on supply chain commitment to the environ- ment". Training and awareness activities in the compa- ny, the judges said, were also commendable. Another issue that impressed the panel was the fact the company had gone beyond legal compliance. The judges noted that the company had, among other things, volun- tarily developed and implemented an environmental management system for the entire organisation. What made NPA’s win even more remarkable was the fact that the com- pany did not, until 2002, have a formal environmental management system. Welcoming the news, NPA’s Media Communications and Stakeholder Relations Manager Donald Kau said the company’s environmental policy, which was aimed at improving performance at head office and the company’s seven ports, was "a demon- stration of commitment" from top management. "This award specifically notes the commendable attempts by this organisation to address complex environmental problems associated with our business and also recognises the major advances we are making to improve our impact on the environment and rehabilitating areas that in the past suffered degradation. "It is worth noting that, as a state-owned entity, we continue to set ourselves benchmarks that point towards the continuing drive and aspirations to be a world-class business," said Kau. NPA, one of the five public enter- prises that made submissions to the awards, shared the Most Improved Environmental Practice award with South Durban Basin Multi-point Plan, which got the nod for its innovation in multi-stake- holder relations. The other three winners in the corporate section were Anglo-

TransParent • June-July 2004 • 14 ENVIRONMENT the environment

American and Richards Bay Minerals for Saldanha 18%. Some of the cargo handled line reporting in which the social and envi- their innovative environmental strategies by the three ports include chrome ore, coal, ronmental aspects of our work are accorded that improved their business performance, woodchips, ferro-alloys, petroleum and iron as much importance as the financial and Sasol Wax for chemical safety. ore. aspect," says Kau. The Environmental Best Practice in Not- Says NPA’s Safety, Health and As part of its environmental policy, the for-Profit Organisations award was won by Environmental Executive Manager Mandisa NPA gives all staff who manage the environ- the SA Scout Association’s Environmental Mondi: "A business must reduce its envi- ment specialised training, either in-house or Education project in North West. ronmental impact and increase its positive through external courses. Other members of the panel of judges social impact to be sustainable." Externally, the company supports a num- were David Grant, Group Environmental Earlier this year, the Port of Saldanha ber of environmental education pro- Officer at SABMiller; Arend Hoogervorst, an made history when it became the first port grammes, which include sponsorship of the industrial adviser; Karin Ireton, Sustainable in Africa to achieve an ISO 14001 accredi- Richards Bay forest eco-tourism boardwalk Development General Manager at Anglo tation, an international benchmark of best and the Environmental Sciences Faculty at American; Paul Kapelus, Founding Director practices in environmental management Rhodes University. of the African Institute of Corporate that also serves as a testimony of an organ- An important development in this year’s Citizenship; Tzila Katzel, Project Manager of isation’s environmental commitment to Greening the Future awards was an the IUCN-The World Conservation Union; stakeholders such as government, commu- increased number of submissions from pub- Mary Metcalfe, former Gauteng MEC for agri- nities and customers. lic enterprises like the NPA. culture, conservation and environment and Another port, East London, was recom- Fakir confessed that he had personally Khungeka Njobe, Water, Environment and mended for an ISO 14001 certification fol- been ignorant about developments taking Forestry Technology Executive Director at lowing an independent environmental man- place in the public sector as far as innova- CSIR Environmentek. agement system audit conducted recently by tive environmental management was con- The judges gave the NPA the nod after the British Standards Institution. cerned. looking at how it addressed environmental Kau, who has also been charged with the "I have also found that, in general, state- challenges while carrying out complex busi- task of communicating with all the key owned enterprises often do not communi- ness activities such as tugs and berthing, stakeholders, says each port has an ISO cate their policies and practices to the gen- port control, marine safety and dangerous 14001-based environmental system that eral public well. In fact, they may be doing a goods management and lighthouse and suit their specific needs as they each handle lot but saying little. dredging services. different types of cargo. "Often, they embark on a splash of pub- Richards Bay accounted for 52% of the "We at he NPA welcome the King II report licity only when things come to a head. As a 166,5 million tons of cargo in the 2002- on corporate governance and apply it as a result, they do themselves a disservice," 2003 financial year, Durban 24% and guideline. We also embrace triple bottom said Fakir.

TransParent • June-July 2004 • 15 COMMUNITY INVOLVEMENT

Some of the Buhlebemfundo Secondary School girl learners applaud in appreciation after a presentation. Learning the ropes

wenty-four girls from the der. CEO Nobusi Shikwane. Buhlebemfundo Secondary School in At Transnet, the grades 10-12 girl learn- Transnet is one of a few major compa- TBrakpan were given an invaluable ers from Buhlebemfundo had an opportuni- nies in South Africa that pride themselves insight into the intricacies associated with ty of a lifetime when they found themselves in having made a clean break with the past running a transport and logistics company shadowing some of the most powerful by, for example, hiring high calibre women as big and complex as Transnet when they women in the company, including Group in influential positions in their organisa- visited the organisation as part of the Take Executive: Corporate Services Riah tions. a Girl Child to Work project recently. Phiyega, Chief Financial Officer Sindi While reports show that after 10 years of The Take a Girl Child to Work project, an Mabaso, Transnet Foundation head Eunice democracy women have still not cracked the initiative of cellular network company Cell C Maluleke, Group Executive: Human nod to any great degree at board and execu- that has been widely embraced by the cor- Resources Ziyanda Danana, Cynthia Ndaba tive management levels, Transnet boasts 60% porate world, is aimed at helping South and Thembi Sethaelo of Spoornet, freight- women representation at the executive level. African girl learners explore work and pro- dynamics CEO Thandeka Mgoduso, SA Addressing the girls from fessional opportunities they may not have Express CEO Siza Mzimela, National Ports Buhlebemfundo on their arrival, Transnet otherwise considered because of their gen- Authority’s Nozipho Sithole and B2BAfrica Group Executive: Corporate Services Riah

Metrorail’s Isabella Makuta with two of the girl learners. These girls demonstrate their delight at visiting Transnet.

TransParent • June-July 2004 • 16 COMMUNITY INVOLVEMENT

Transnet Group Executive: Corporate Services Riah Phiyega explains a point to a girl learner.

Phiyega said women were the power block include the National Ports Authority’s participation in this area," Phiyega said. behind the transport giant. Women in Engineering Programme, South Buhlebemfundo Secondary School was "We believe Transnet is a leader among African Port Operations’ Women in built by equity workers of Transnet in part- South African companies in terms of active- Operations Programme, Spoornet’s Women nership with the Gauteng Education and ly rectifying historic gender imbalances in in Rail and South African Airways’ Women Development Trust, Transnet Foundation the transport industry. We have also made in Aviation. and Billiton. sure that our policies on this issue cas- "We hope the young ladies will be "This is yet another opportunity to touch cade down to all our divisions and business encouraged to in future consider some of the lives of girl learners at Buhlebemfundo units. the great opportunities offered by this and create a better future for them," said "It is thus a natural step for us to show transport giant." Phiyega. "We hope their experience with us young women that they can make it at the She continued: "The future is as wide today will give them an understanding that very highest level. The challenge we con- as you can imagine and today we as women a good education is the foundation of tinue to pose to women leaders in Transnet leaders at Transnet are going to show you achieving their dreams, goals and aspira- is to continue to make a difference to the that it is possible to make your dreams tions." other women in the company to ensure that come true. The rainbow nation is going to During the day, the 24 girls had an development and empowerment become a be built by yourselves. Today, we are going opportunity to fly on a SA Express plane, reality at all levels in the organisation. to expose you to the world of transport and experienced a train ride on a Metrorail "Our commitment to women develop- logistics but moreso, the drive behind train, spoke to leading women in their ment is further enhanced by programmes breaking barriers that for many years made fields and visited the KwaZulu-Natal opera- run in our various subsidiaries. These it difficult for women to have a meaningful tions of the National Ports Authority.

The girl learners show their appreciation with a dance. Makuta shares a moment with two of the girl learners.

TransParent • June-July 2004 • 17 LEADERSHIP Race on for top award he countdown to the 15th edition of the Transnet Foundation-backed Boss of the TYear award, which seeks to identify excellent South African workplace leaders who motivate, develop and inspire their staff in a special way, has begun in earnest. Entries for this year’s award, one of the most prestigious honours in the business world and public sector, began pouring in soon after its official launch by Transnet Group Executive: Corporate Services Riah Phiyega in Johannesburg recently. This year’s winner will be announced at a glamorous banquet lunch to be held at a top Sandton hotel on Friday October 15. To mark the award’s 15th anniversary, which also coincides with South Africa’s celebrations of Last year’s Boss of the Year prize winner Thoko Mashiane, Chief Executive Officer of the Ehlazeni District Municipality. 10 years of democracy, the organisers have announced that the lucky recipient will win a company was a strong and firm believer in was Martin van Zyl, a Director General in the R3 400-a-night holiday at an exclusive hotel quality leadership in the workplace. Northern Cape provincial government, in in the heart of Western Cape’s wine lands. "We need to continuously recognise 1996. For the past two years, the award was Over and above that, he or she will, for a peri- sound leadership, high ethical standards and won by black women – Seadimo Chaba, od of 30 days, have free use of a luxury car good corporate governance," she said. Deputy Director General of the Gauteng sponsored by one of South Africa’s leading The inaugural Boss of the Year award was Department of Transport in 2002 and Thoko car rental companies. won by Dr John Maree, former chairman of Mashiane, Chief Executive Officer (CEO) of Officially launching this year’s edition of Eskom, in 1990. In the mid-1990s, the the Ehlazeni District Municipality in 2003. the award, Phiyega paid tribute to the organ- award, which has grown to become an agent Other previous winners include Humphrey isers for the significant role they were playing of best practice in leadership in South Africa, Khoza, former CEO of national lottery opera- in sensitising both the corporate world and began to reflect the transformation process tor Uthingo; Joe Tsotetsi, chairman of the public sector in South Africa to sound taking place in the private and public sectors Motswedi Technology Holdings; Dr Geoff workplace leadership practices. when black workplace leaders started Garrett, then President and CEO of CSIR and Phiyega said Transnet had never stopped appearing in the picture. Brand Pretorius, then Managing Director of supporting the Boss of the Year award as the The first black leader to win the award Toyota South Africa Marketing. Facelift for internet, intranet

In a move aimed at accurately projecting of the business units. informative than before. its image as Africa’s leading transporta- The intranet site is also in the process The intranet will have a quick find fea- tion and logistics company, Transnet is of being revamped. ture which will enable users to quickly improving its internet site to ensure a The piloted internet site does not only access information from different busi- constant flow of up-to-date and relevant have a fresh look and feel but it is also ness units, departments and sub- information to all its stakeholders. more user friendly, easily accessible and sidiaries. This site has been piloted and posi- interactive. All departments will, through Group tive feedback was received. The site has The site, which is to be updated on a Corporate Communication, be responsi- an active hyperlink with all internet sites regular basis, is much more focused and ble for updating their own web pages.

TransParent • June-July 2004 • 18 GENERAL NEWS Beware of 419 scammers Transnet employees have been warned to guard themselves against possible 419 scam fraudsters following the circulation recently of a highly suspicious e-mail in the company’s electronic communication net- work. The e-mail, written by a person who refers to himself as the son of an alleged wealthy Guinea Bissau cattle farmer and Formal (sic) Minister of Agriculture assassinated by unknown gunmen, seeks assistance in investing US$11,7 million he claims his father left in an Abidjan, Ivory Coast, bank. This e-mail, which is littered with gram- matical errors, purports to offer anyone who can come to his and sister’s assistance "15% of the sum as compensation for your The imposing Carlton Centre. kindness as soon as the money is transfered (sic) to your bank account on our behalf while 1% is for all your expenses incurred". Transnet breathes "We lost our mother at a tender age, my father took our responsibility special (sic) until his death. Before his death, he disclose new life into the city (sic) to me and my sister a deposited sum of US$11,700,000.m in a bank in Abidjan, Cote he purchase by Transnet of the Carlton has reached 93% while in the retail centre it d’Ivoire. He further advise (sic) that we Centre, the world’s largest concrete stands at 65%. should look for his foreign Investor to assist Tstructure in November 1999 at a cost A number of consortiums have also us invest the money in a good venture of R32 million, has brought with it a promise approached Transnet with proposals to abroad. Unfortunately, I lost the contact dur- of a new life, not only for the giant complex reopen the Carlton Hotel. ing burial, since then, things weren't the but also for the revitalisation of the Mosebi said the company was weighing same as the money remained unclaimed Johannesburg Central Business District up a number of options and negotiations hence an arrangement have (sic) been con- (CBD) as a whole. were currently being conducted with potential cluded according to my late father to transfer Transnet has also invested several mil- investors. the money to his investors’ bank account for lions of rands in the revamping of the com- She said the biggest challenge facing the real estates (sic) project." plex’s office tower and retail centre. Carlton Centre was perception of high crime The writer also claims to have established This initiative has attracted big compa- levels in the CBD. contact with the recipient of the e-mail, whom nies such as Pick ‘n Pay as well as the South "Transnet has invested extensively in he describes as "trustworthy", through a African Revenue Services to the complex, security within the centre. We work closely "deligent (sic) search". dubbed the "Centre of Africa". with the Central Johannesburg Partnership Transnet Chairman Dr Bongani Khumalo "We also anticipate that a number of big for Security and Cleaning. We also house Cue sent out a circular warning that this could be brand retailers will be flocking to the centre Incident, which, through its high quality secu- a 419 type scam that employees should within the next few months, enabling rity surveillance camera system, monitors all guard themselves against. Transnet to restore the complex to its former activities taking place around the CBD." "People must be helped to avoid black- glory," said Propnet Marketing Manager As a result, crime in the CBD has dropped mail and embarrassment as many may still Dorcas Mosebi. by 80% over the past four years, making the be vulnerable to such things," he said. The occupancy rate in the office tower area one of the safest in Johannesburg.

TransParent • June-July 2004 • 19 GENERAL NEWS No salary hikes for top executives ransnet has taken its first step towards Executive Maria Ramos, Group Executives, the pension fund deficit as well as AC133 will addressing some of the financial chal- CEOs and some General Managers of have on Transnet’s year-end performance. Tlenges facing the Group on its journey to Transnet’s business units and subsidiaries. The zero percent salary increase for top becoming a competitive company. Public Enterprises Minister Alec Erwin management does not affect the annual The top management team recently recently emphasised that the government increases of employees across the Group. resolved to take a zero percent salary would focus on infrastructure investment in The decision will have the added benefit increase for the current financial year. and the efficiency of public enterprises so of helping to close the wage gap between var- Members of the team are determined to that they could be in a good position to deliv- ious employee levels at Transnet. The deci- recognise Transnet’s inadequate financial er what the economy needed. He also said sion by management is just one of the ways performance, which will be reflected in this Transnet would have to be commercialised to by which the company is seeking to address year’s results. a point where it was highly competitive and the financial challenges facing the Group. The zero percent salary increase will give efficient. Members of the senior management team added impetus to the company’s drive to put Top management took the Minister’s mes- have shown their unwavering support of the remedial measures in place to assist sage to heart and is aware of the impact path Transnet has chosen to transform itself Transnet turn the corner and move towards financial challenges such as South African into a successful, integrated transport and better performance and competitiveness. Airways’ hedge book, the capital expenditure logistics organisation and a valuable corpo- Top management includes Group Chief required to upgrade infrastructure, litigation, rate citizen of South Africa. Ramos mingles with train commuters

To familiarise themselves with the chal- achieve this was to lenges facing suburban train operator travel in small groups Metrorail, Transnet Group Chief Executive at peak hours as Maria Ramos and members of her Executive anonymous com- Committee (Exco) undertook early morning muters on the central train rides on three major Western Cape line from Khayelitsha, routes recently. the northern line from Ramos said it was important for Exco Eerste River and the members to undertake such trips as they southern line from afforded them the opportunity to have first Retreat into Cape hand experience on the services offered by Town Central. Metrorail as well as to interact with the con- "Talking informally sumers of our products and services and to to individual com- establish their views and concerns. muters who are regular Trains are the most affordable mode of transport. "We at Transnet are determined to offer users of Metrorail was Lauriette Modipane, acting Chief the best possible rail service to our cus- an enlightening experience for all of us. The Executive of Metrorail who accompanied tomers. To do that, it is essential for us to views of the public gained from these trips Ramos and Transnet Exco members on the find out first hand whether our customers will be used in our planning and operational trips, added that Transnet’s support was are satisfied with our offerings and how we reviews to provide meaningful solutions to important in addressing problem areas and can improve them. We on the Exco of the challenges facing commuters," conclud- improving Metrorail’s service offerings to Transnet decided that the best way to ed Ramos. commuters. TransParent • June-July 2004 • 20 PEOPLE ON THE MOVE Maluleke’s appointment concretises foundation

unice Maluleke has been appointed As the head of the foundation, Maluleke is responsi- head of Transnet Foundation, the com- ble for strategically positioning Transnet as a good cor- Epany’s corporate social investment porate citizen and using its CSI programme to boost the arm, after serving it in an acting capaci- company’s brand. ty since its establishment two years Maluleke is charged, among other things, with shap- ago. ing the department’s vision and strategic direction, Announcing Maluleke’s appoint- ensuring the delivery of a sustainable CSI programme ment, Group Executive: Corporate and return on investment. Services Riah Phiyega said with The CSI strategy is at all times aligned to Transnet’s her experience as the founda- business imperatives and is positioned to support devel- tion’s former acting head over the opmental goals of the shareholder. past two years, during which time Maluleke also co-ordinates the activities of the she did "a sterling job", Maluleke department’s six portfolios – Education & Training, Arts was without doubt "the ideal can- & Culture, Health, Sport, Entrepreneurial Development, didate" for the position. Special Projects and Heritage Preservation. "Management would like to wel- A qualified social worker with an MA degree in Social come her in her new position and Science from the Rand Afrikaans University, Maluleke encourage her to carry on with the task joined Transnet’s CSI division in 1994. With a string of she has performed so well," Phiyega business qualifications from top institutions such as said. Wits Business School, she rapidly rose through the ranks, becoming the manager of the CSI’s education portfolio in 1997 and head of the CSI division itself three years later. In 2002, Maluleke was asked to assist in setting up the Transnet Foundation, which she later headed in an acting capacity until earlier this year. A member of the South African Black Social Workers Association and the Transnet Tender Board, Maluleke also serves on a number of trusts, including Uthingo Eunice Maluleke, head of the Transnet Trust, Safa Transnet Trust and education developments Foundation. trusts in Gauteng, KZN, North West, Western Cape, Eastern Cape, Northern Province, Northern Cape and Mpumalanga. Madima leaves Transnet

Dr Taki Madima (pictured right), who served as While at Transnet, Madima also had an opportu- General Counsel: Compliance in the Transnet Group nity to serve as chairman of the company’s wholly Legal Services unit for the past seven years, has left owned passenger bus service, Autopax. the company to pursue other business interests. Madima described his seven-year stint in Group Corporate Services Executive Riah Phiyega Transnet as a "huge investment" in his legal career. praised Madima for his invaluable contribution and He confessed, however, that it was difficult for him wished him all the best of luck in his future endeav- to leave such "a great company" to pursue other ours. interests.

TransParent • June-July 2004 • 21 WOMEN EMPOWERMENT Transnet women on top

n an environment where women’s repre- Executive Maria Ramos, who became the sentation at board and executive levels is first woman ever to head the R60 billion Istill extremely low despite 10 years of group when she took over the leadership democracy, Transnet is continuing to lead reins from Mafika Mkwanazi in December the way in the implementation of employ- last year, is rated by the survey as the sec- ment equity at the highest level. ond most powerful businesswoman in Its commitment to increased gender rep- South Africa. Being picked ahead of other resentativity at all levels was again recog- influential businesswomen such as Hixonia nised when three Transnet Nyasulu, a director of several blue-chip com- women executives were panies; Bridgette Motsepe, chairperson of included in a survey of Mmakau Mining; Wendy Lucas-Bull, South Africa’s 20 most Executive Director of FirstRand and Pam powerful and influential Golding, owner of Pam Golding Properties, women in business is undoubtedly a remarkable achievement conducted recently by for Ramos. the Financial Mail, Dolly Mokgatle, the first woman to be one of the coun- appointed Chief Executive of Spoornet, try’s leading Transnet’s rail utility, occupies the seventh financial maga- spot while Sindi Mabaso, Transnet’s Chief zines. Financial Officer, is 11th on the list. T ransnet Transnet was the only company that had Group Chief the most number of women on the list. While recent studies indicate that only 14,7% of executive managers in South Africa are women, Transnet is one of a few companies in the country that can boast 60% women representation at the executive level. In the same sur- vey, Transnet was named among the top nine most "woman-empowered companies" in terms of the number of directorships and executive posi- tions held by women in their organi- sations. The list included SABC, Air Traffic and Navigation Services, Spescom and the MTN Group. Ramos, whose strong and exem- plary leadership earned her an enor- mous amount of respect interna-

TransParent • June-July 2004 • 22 WOMEN EMPOWERMENT

tionally during her tenure as Director world. A founder member and former South African Airways and Armscor. General of the national treasury, was chairperson of Wiphold, a women As Transnet CFO, Mabaso, one of the only woman on the list of South empowerment company, Mokgatle was the youngest women on the list of the Africa’s business power elite compiled a finalist in the 2000 Businesswoman most influential black women directors by the Financial Mail in December last of the Year awards. in the country, is in charge of a multi- year. The first woman and non-technical billion rand budget. Ramos’s ascendancy to business person to be appointed Executive Before joining Transnet, Mabaso, prominence took a giant leap in 1998 Director of Eskom Transmission, a one of a few black women chartered when she was presented with the highly technical division of Eskom, she accountants in the country, worked as Global Economic Forum’s Global earned a string of awards in recogni- a financial director for the South Leader for Tomorrow. Her rise to the tion of her contribution to the energy African Railways & Harbours Workers top was given further impetus when sector. These include the Women in Union Investment Holdings. she was named Businesswoman of the Business award presented to her by Other prominent businesswomen Year three years later. Minerals and Energy Minister Phumzile who have been included on the list of Less than eight months into her Mlambo-Ngcuka in 2000, Eskom the country’s most powerful women tenure as Transnet CE, Ramos has Distributor Award (1993) and Eskom are Wendy Luhabe (rated number one), already made a number of important Chairman’s Award (1994). chairperson of the Industrial decisions aimed at positioning Mokgatle, who had no rail back- Development Corporation and a board Transnet as an increasingly significant ground when she joined Spoornet a lit- member of several companies; Zanele player in growing the economy. tle more than a year ago, has come up Mbeki, South Africa’s First Lady; Mokgatle, an attorney by qualifica- with a comprehensive and integrated Danisa Baloyi, who serves on the pres- tion, had a similar mete- business plan designed to take the idential advisory team on black eco- oric rise in company to new heights. nomic empowerment and Irene the highly Mabaso, who joined Transnet Charnley, MTN’s Executive competi- as Managing Director of its Director. tive and fleet management sub- "dog-eat- sidiary, Viamax, a few dog" years ago, once served business on the boards of

TransParent • June-July 2004 • 23 KNOW YOUR POLICIES Transnet’s HIV/AIDS POLICY This wide-ranging HIV/Aids policy aims to allay fears and concerns HIV-positive employees may have about their status in the workplace.

1. Preamble reason to preclude any person from Transnet acknowledges the serious- employment or participation in any ben- ness of the HIV/Aids epidemic; seeks efits unless there are known compli- to minimise the economic and develop- ance issues; mental consequences to the company Transnet commits itself to "3 Cs": and its employees, and commits itself (a) Consent to testing and medical to providing resources, training, educa- examinations; tion, support and leadership to imple- (b) Confidentiality of medical informa- ment an HIV/Aids and sexually trans- tion; and mitted infections (STI) programme in (c) Counselling services for employees the workplace. wishing to be tested or for those who are infected with or affected by the 2. Principles virus. Transnet affirms that: ● The policy will be implemented 3. Recruitment and maintained in consultation with Aids is not a notifiable disease and as employees and representatives and will such, prospective employees will not be reviewed from time to time; be required to undergo an HIV/Aids ● HIV/Aids is a shared responsibili- test as part of the recruitment process. ty by the employer and employees ● Employees living with HIV/Aids 4. Confidentiality have the same rights and obligations Should management know the HIV sta- as all employees and will be protected tus or any other medical condition or against all forms of discrimination; conditions of an employee, this infor- ● The company will assume a non- mation will be kept strictly confidential. judgmental position. All employees are urged to keep any Those who discriminate against HIV- known medical information about their positive employees will receive a warn- colleagues’ HIV status confidential. ing and further compulsory education The disclosure of such information about HIV.If untoward behaviour per- to fellow employees will result in disci- sists, disciplinary action will be insti- plinary action being taken against the tuted; employee who has breached confiden- ● HIV status will not constitute a tiality.

TransParent • June-July 2004 • 24 KNOW YOUR POLICIES

5. HIV/Aids programmes in the work- mended procedures for any employee The company will conduct regular place who becomes unfit for whatever reason. analyses in order to understand the evolv- The company is committed to furnishing 6.1 Where an employee gets to a point ing epidemic and how it will impact on the essential HIV/Aids awareness education where early ill-health retirement must be future of the company, its structure, oper- to employees, including but not limited to considered, it will be done in accordance ations and functions. general information pertaining to the dis- with current practice or procedures 8.2 HIV/Aids Wellness Lifestyle ease, such as prevention, acceptance of 6.2 The process of temporarily remov- Management Programme fellow workers who have contracted the ing an employee from his/her post to an The company will at all times endeav- disease. The company will put the follow- alternative post due to disability caused our to create a work environment con- ing programmes in place: by HIV/Aids will always be done in con- ducive for employees to disclose their HIV 5.1 Prevention sultation with the relevant employee status. However, the rights of each 5.1.1 Education and awareness and/or trade union representing the employee will always precede any disclo- ● Management, employees and labour employee sure made by an employee. must agree on HIV/Aids education and 6.3 Where it becomes necessary to The company is committed to provid- prevention programmes to be conducted remove the employee permanently from ing a comprehensive HIV/Aids Wellness in the workplace. These programmes his/her job due to HIV/Aids or any related Lifestyle Management Programme. To must be conducted in appropriate lan- disability, Human Resources will effect ensure a holistic Wellness Lifestyle guages, taking into account levels of edu- the redeployment of employees in consul- Management Programme, a wellness cation and literacy tation with the employee and his/her strategy will be put in place. ● Corporate Social Investment to trade union representative. There will be Employees who enrol into the incorporate HIV/Aids programmes no exceptions to the rule. All reasonable Wellness Lifestyle Management ● Support for both infected and endeavours will be made to redeploy such Programme will be required to adhere to a affected employees an employee for as long as possible. basic HIV care protocol determined by the ● Capacity building and the promotion Benefit Manager which will outline the of ownership of the programmes through 7. Employee benefits basic appropriate clinical approach for the training of employees as peer educa- People living with HIV/Aids will fall under managing HIV infection and HIV, specific tors the normal rules of the Benefit Schemes. laboratory testing and immune status 5.1.2 Attempts will be made to train These many or may not have exclusions monitoring. The programme will then pro- appropriate categories of employees in or specific rules for medical conditions, vide a total management of the illness. HIV-related issues including HIV/Aids. The rules of the The education process will be of a con- scheme will always take precedence. 9. Dispute procedure sultative nature where all stakeholders Employees’ benefits may be signifi- Should any dispute in future arise on the are consulted and involved. The company cantly affected by HIV/Aids claims. Such interpretation or implementation of this will utilise a wide range of bodies to benefits should be structured to take policy, such dispute will be dealt with in assist and provide the education in a sen- cognisance of the disease, thus avoiding terms of the dispute procedure currently sitive manner. conflicting and inequitable situations in place. 5.2 Physical prevention arising in the future or different benefit ● All employees will have access to packages existing for various classes of 10. Stakeholder interaction condoms; employees. The company will collaborate with rele- ● Personal protective equipment for With that in mind, the company should vant organisations and support efforts to staff who may potentially be exposed to create a viable non-discriminatory limit the spread of diseases such as blood or blood products and any other approach to benefits, such as medical aid HIV/Aids products that could cause infection; and and health related benefits, pension, ● Health services for the appropriate housing and bursaries, training and study 11. Communication management of STIs. subsidies. The formulation of an HIV/Aids policy is an important step in addressing the 6. Continued employment/retirement 8. Management of people living with impact of the disease on the company. due to ill-health HIV/Aids However, it is imperative for the success Current employees who contract the virus Employees living with HIV/Aids will be of the strategy that the policy is commu- while in the employ of the company and allowed to work for as long as they are nicated to the employees in a simple are concomitantly unable to effect their reasonably capable of performing a full manner so that they can all be able to work must be dealt with in the appropri- day’s work. comprehend its contents as well as the ate manner consistent with the recom- 81. Assessment of the risk benefit structure. TransParent • June-July 2004 • 25 CORPORATE SOCIAL INVESTMENT

North West MEC for Social Development Nomonde Rasmeni cuts the ribbon to mark the official opening of the Kagisanong Multi-Resource and Victim Empowerment Centre in Garankuwa. With her is (in the red jacket) Eunice Maluleke, head of the Transnet Foundation. Taking the side of the victim n its pursuit to help address socio-economic the disease. Empowerment Programme so that the commu- challenges facing SA’s disadvantaged com- Jack Monedi, a spokesman for the North nity of Garankuwa knows that this place, too, Imunities in partnership with government West Department of Social Development, said is at the vanguard of development and that an departments and non-governmental organisa- the centre would ensure that victims of crime, end to underdevelopment requires a concert- tions, Transnet Foundation, Transnet’s corpo- abuse and violence are "healed and empow- ed effort from each one of us. rate social investment arm, recently donated a ered". "As we celebrate 10 years of freedom, our number of containers previously used as cargo "It’s an important part of social crime pre- country has given us the opportunity to move carriers to help establish a multi-resource and vention," he said. from a season of suffering and despair to one victim empowerment centre in North West. Speaking at the official opening of the cen- where we can realise our dreams of freedom." The Kagisanong Multi-Resource and Victim tre, Transnet Foundation head Eunice Maluleke, who unveiled the plaque jointly Empowerment Centre near the Odi Maluleke said the donation of the containers with the North West MEC for Social Magistrate’s Court in Garankuwa was estab- was an indication that Transnet as a company Development, Nomonde Rasmeni, said it was lished jointly by the national Ministry of was taking issues of community development through a multi-disciplinary approach to crime Justice, North West Department of Social seriously. prevention, as alluded in the National Crime Development and Transnet Foundation under "Transnet is a transport logistics company Prevention Strategy, that communities would the Victim Empowerment Programme (VEP), and through its entrepreneurial development succeed in fighting crime. one of the sub-programmes of the National initiatives, it ensures that its under-utilised "I would therefore like to make a clarion Crime Prevention Strategy. assets, such as the containers you see here call to the community of Garankuwa to become The VEP is a multi-faceted and inter-sec- today, are not put to waste but are given a new active participants in fighting social ills such toral intervention comprising different govern- lease of life to be used as infrastructure for as child abuse and domestic violence. Let us ment departments across all tiers of govern- socio-economic development," Maluleke said. all lend a helping hand to build another 10 ment as well as a number of non-governmental She said the grinding poverty afflicting years of a better life for all," she concluded. agencies. many African households had led to cases of The Transnet Foundation’s Entrepreneurial The centre offers counselling and crisis abusive behaviour among communities. The Development portfolio has over the past 10 services to victims of violence, abuse and black community, and in particular, the girl years donated under-utilised assets such as crime. Other services include mediation of child and women have, she said, suffered ret- containers to be used by communities for a domestic violence and child abuse cases prior rogression in their schooling and in their variety of socio-economic development pro- to their referral to the courts. With HIV/Aids households respectively. jects in many disadvantaged areas around the continuing to rear its ugly head, the centre is "We are gathered here today to officially country in partnership with provincial and also being used to care for people living with launch this centre under the Victim national ministries of Social Development.

TransParent • June-July 2004 • 26 CORPORATE SOCIAL INVESTMENT Rural school gets a R3, 1m facelift rural Limpopo primary school that ments that threatened to compromise its ting and working behind one. played an instrumental role in populat- quality of education delivery. Handing over the refurbished school to Aing surrounding communities with Between the 1980s and 2000, up to nine members of the School Governing Body exceptional leaders and professionals but classes were conducted under trees because recently, Transnet Group Executive: Corporate whose quality of education delivery came of the critical shortage of classrooms. Services Riah Phiyega described the facility under pressure of late due to lack of The foundation spent R2, 8 million on lay- as a "beacon of hope, not only for the com- resources, has been given a new lease of life, ing new infrastructure and a further munity of this area but also for the whole of thanks to Transnet Foundation. R300 000 on the provision of 21 computers South Africa". Tshifudi, which was first established as a and two printers, educational toys for the She said Transnet was doing this not only church school by the Berlin Missionary in Grade R class and books for the media cen- because it was fulfilling a mandate from the 1928, reclaimed its status as a centre of tre. government but also because the company excellence when Transnet Foundation recent- As a result of the intervention, the wanted to play a leading role in the alleviation ly provided it with 12 additional classrooms, school today easily caters for a school pop- of poverty and the reconstruction and devel- a fully equipped computer centre, a media ulation of 777 learners and 22 educators. opment of the country. centre, an administration block and ablution The state-of-the-art com- facilities. puter centre is aimed at The R3, 1 million intervention has created helping to bridge the digi- a conducive environment for effective learn- tal divide in an area ing and teaching at the school. The school where many school chil- had been finding it difficult in recent years to dren have not seen a cope with an increasing number of new enrol- computer, let alone sit-

BOTTOM: A Tshifudi Primary School RIGHT: Guests discuss learner (left) takes her tentative a point during the steps on the information technology hand over of Tshifudi’s highway. computer centre.

TransParent • June-July 2004 • 27 AFRICA’S DEVELOPMENT Transnet carries hopes for the future

n line with its commitment to positively con- tribute to Africa’s development, Transnet Ipartnered with the Swiss-based World Economic Forum (WEF) to ensure the suc- cessful and smooth hosting of the forum’s summit in Maputo, Mozambique, at the begin- ning of June. Transnet agreed to step in and provide on- road transport logistics to ensure that the three-day summit, held under the theme Engaging Business in Development, achieved its objectives, after it emerged that there were no local transport operators with the capacity to undertake a venture of such a magnitude. The summit, attended by more than 600 The team that transported delegates to and from venues at the World Economic Forum’s recent summit in Maputo, Mozambique. They are (from left) Jones delegates, the majority of whom were from Ramakulukusha, Theo van Heerden, Marcus Sekwelo, James Hlabane, Xolani African countries, focused on the role and Ndalase, Valator Pitso, Johannes Malema, Charlotte de la Harpe, Dirk Botha, contribution of business in development and Sipho Nkosi, Reuben Muluvhu, Mike Tandy and Victor Matavel. proposed practical solutions for change in Parliamentary Liaison, who was assisted by team coordinated transport arrangements Africa. Charlotte de la Harpe, Project Manager: between Polana Hotel and the Maputo As part of the agreement, Transnet, Government and Parliamentary Liaison. International Convention Centre. through its road transport passenger service Botha hailed the operation as “a great “You applied yourself diligently and with business unit Autopax, provided the summit success”. such care and concern that most of the dele- with eight luxury 68-seater buses and four 22- Positive feedback was also received from gates spoke highly of you. seater sprinters for the participants’ transfers many of the delegates at the summit. “I know that logistically Maputo is a chal- between their hotels, the Convention Centre One of them was Stanley Subramoney, lenge but as a delegate you made it so easy and other venues in and around Maputo. Deputy Chief Executive Officer of and comfortable for me. You went about it in The operation was headed by Dirk Botha, PriceWaterhouseCoopers, who said he was a professional manner. You made me feel Senior Manager: Government and highly impressed with the way the Transnet proud to be a South African,” he added.

Thebe National Car Rental, a joint venture between Thebe On the move Tourism Group and National Alamo Car Rental, was recently awarded a tender to provide Viamax Fleet Management, a Transnet business unit, with vehicles for airport and non-airport rentals. The National Alamo Car Rental is the third largest car rental brand in the world. Its South African interests are owned by Combined Motor Holdings. Speaking after the signing of the agreement in Johannesburg recently, National Alamo Car Rental Managing Director Bruce Barritt said his company was looking forward to "a long and fruitful relationship" between the parties involved. He promised that he and his team would "take great care" of Transnet and its subsidiaries and endeavour to provide a first class service. Seen with Barritt, who is signing the agreement (right), is Viamax Fleet Management’s Executive Director, Malcolm Yeomans.

TransParent • June-July 2004 • 28 SOUTH AFRICAN AIRWAYS

First class service

hen it comes to providing first class likes of Swiss, Qantas, Emirates, British closely with community development projects passengers with exclusive experi- Airways, Malaysia, Lufthansa, Gulf Air, Japan that supply craft work in line with the SAA Wence, South African Airways (SAA) Airlines and Asiana Airlines. brand. clearly ranks with the best the world has to "No small feat if you consider who we out- The first class lounge, known as the offer. shone and left behind," says SAA President Cycad Premium lounge, ranks number four in For those who want to savour this plea- and Chief Executive André Viljoen. the world and has a dedicated chef who pre- sure, the airline now has a limited special Only Cathay Pacific, Singapore, Qatar pares an a la carte menu. offer called the First Class Companion Fare. Airways, Thai Airways and ANA All Nippon "The first class lounge, which features lux- The offer applies to two passengers travelling Airways managed beat SAA in this year’s urious showers, a boardroom, state-of-the-art together to and from London. To qualify, a rankings. business facilities and snooze rooms, is a passenger must buy a full first class ticket for Skytrax audits airlines annually in all trav- luxury facility for our Premium Plus passen- his/her companion to get a first class seat at el classes on product and the quality of ser- gers. half the cost of the full paying passenger. vice offered. It also offers a detailed and "Our first class offers our passengers the SAA, which has been voted the top airline highly valued ranking system on various best the world's greatest airlines have. For in Africa on numerous occasions, is listed aspects relating to the airline industry. the first time ever, we have climbed the ranks with top Asian airlines as among the world’s The reason for SAA’s success, according to group ourselves with Asian airlines whose leaders in fulfilling first class passengers’ to Viljoen, is its efforts to provide service service cultures are the world’s benchmark. expectations. excellence in the global arena and its quest For this, a warm thank you to all SAA's staff Skytrax, a British-based leading specialist to be among the leaders in first class service that helped towards this achievement," says adviser to the airline industry providing inten- delivery to meet its discerning passengers’ Viljoen. sive product and service research and quali- needs and expectations. The first class prod- Passengers who want to make the first ty evaluation audits to airlines and airport uct and service are still part of the airline’s class experience their own have an exclusive operators around the world, ranks SAA in destination network to London, Lagos and chance of doing so. sixth position for providing passengers with Luanda on the Boeing 747-400s. The First Class Companion Fare is for pas- "complete first class product and service First class curbside check-in now ranks sengers who want to travel to London offering". number two in the world for its service and between now and December 31. The offer By being placed sixth, SAA has moved up product. This includes enhanced branding requires that both passengers travel together three positions from last year, beating the with a unique South African touch. SAA works on both sectors.

TransParent • June-July 2004 • 29 SUBSIDIARIES Protekon restructures to expand its market

rotekon, a subsidiary of Transnet Ltd, was established in 1990 to Pservice Transnet’s main divisions by providing rail and port engineering services. Over the period between April 1990 and 1999, Protekon developed from a business unit employing some 3 800 people – and operating at a nett loss of some R60 million – to an organisation achieving a nett operating profit of R25 million with a staff complement of about 800 people. These achievements can be attrib- uted to a realisation that the staff com- plement and modus operandi were out of line with the then modern business concepts of commercialisation. "Harsh decisions had to be taken, The Protekon executive committee members. particularly in respect of cost curtail- Protekon dedicate time to analyse the thus freeing its employees to think out- ment. These, coupled with productivity situation and position the company side the box and realising that Transnet increases, focused marketing, client accordingly. At the core of its concern was a very important client, but just one consciousness, quality- and service- was dependency on Transnet projects, of many in the market in which it oper- improvements, and good old-fashioned which needed to be changed. ated. hard work, caused us to achieve a "In November 2003, we convened a "We have since restructured the busi- remarkable turnaround," says Chief workshop which had to answer this ness such that it is able to take on the Executive Officer Cyprian Xaba. question: how do we, at a strategic market in a purposeful manner. Within In 1999, Protekon was corporatised level, position Protekon such that it this strategy, our challenge is two-fold: and became Protekon (Pty) Ltd. In spite reduces sole dependency on Transnet defend and consolidate current markets of corporatisation, the mandate without losing this market, while within Transnet; while at the same time, remained the same – "provide rail and accessing new markets at the same growing external markets to achieve port engineering services to Transnet time? Clearly, this question had impli- sustainable growth in revenue, profits, main divisions". cations for the mandate given to us by expertise and representation in support "It is our view that we have carried Transnet." of NEPAD initiatives within the African this mandate the best we could, and will In answering the question, the work- sub-Saharan region. continue to do so. However, new condi- shop had to redefine Protekon’s busi- "We have elected to provide total tions have since emerged and among ness and the markets it served. It engineering solutions to rail, ports, these is the fluid situation within defined Protekon’s market as trans- pipelines and roads markets. Our con- Transnet; introduction of the Ports Bill; portation-related infrastructure. This led cept of total solution is feasibility, discussions around concessioning of to the redefinition of clients as trans- design, construction, operations design the Durban Container Terminal; merger port operators, owners, users and and planned maintenance. We choose of Shosholoza Meyl, Metrorail and developers in rail, ports and related to engage the competitive landscape in SARCC, and lack of clarity on the end- transportation infrastructure. the above-defined areas. state of Transnet," says Xaba. The new market definition leads to a "We look forward to providing appro- These developments have serious shift in strategy from client- to a market- priate, quality and affordable engineer- leadership, strategic, tactical, financial driven company. Due to this shift, ing solutions that will result in improved and structural implications for Protekon. Protekon was able to move away from bottom-line of our clients and our- It, therefore, became necessary that inward to outward looking strategies, selves," says Xaba. TransParent • June-July 2004 • 30