DOCSLIB.ORG

Engineering 2019 Transnet Engineering 2019 2

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Engineering 2019 Transnet Engineering 2019 2 Engineering 2019 Transnet Engineering 2019 2 Highlights • Revenue decreased by 6,4% from R11,25 billion to R10,5 billion in 2019 • EBITDA decreased from a loss of R139 million to a loss of R737 million • Transnet Engineering, achieved the Shareholder’s Compact targets on train reliability and efficiency as summarised below: Target Actual 2019 2019 Key performance indicator % % Volume lost due to traction 7 7,5 Train delays due to traction 40 18,7 Train cancellation 6 3,1 Business overview Transnet Engineering (TE or Engineering), an advanced manufacturing division of Transnet, has a rich and proud heritage spanning more than 150 years. TE’s solutions, underpinned by a strong innovation culture, help customers deliver goods and services with greater speed and efficiency using long refined advanced manufacturing techniques, industry expertise and highly-skilled personnel. Over time, TE has established extensive core capabilities for research, design, testing, manufacturing, remanufacturing, assembly and maintenance of railway rolling stock including locomotives, freight wagons, passenger coaches and port equipment. To this end, TE has positioned itself as the first African independent original equipment manufacturer (OEM) for wagons. With more than 11 600 employees countrywide, 143 depots and six main factories, Engineering is ideally positioned to serve its key customers locally and globally. Through its Vision 2021, Engineering aims to be the preferred brand in rail and related engineering solutions in Africa and across the world. This entails: • Becoming a world-class OEM of rolling stock and logistics equipment; • Becoming a preferred maintenance, repairer and overhaul partner for all rail and related equipment in Africa; • Establishing Centres of Excellence for technical and engineering skills development in Africa; and • Driving economic development and growth in sub-Saharan Africa. Engineering’s range of services is designed to grow the customer base both nationally and across Africa. The maintenance service depots are strategically positioned for the key corridors of Freight Rail. This ensures that the train delays, cancellations and volumes lost are minimised to focus on improving operational efficiencies by concentrating on availability and reliability of rolling stock. National and African markets remain key customer growth areas for Engineering’s commercial prospects. The manufacturing and overhaul arms of TE provide local and African freight operations with new and refurbished locomotives and wagons. Engineering continues to focus on growing its footprint in the African market and beyond. These new areas are an attractive growth market for the division due to increased investments in rail occurring across the continent. True to its aspirations of becoming the fully-fledged African OEM, Engineering has successfully researched, designed, manufactured and tested a new purpose- built locomotive, the TransAfrica Locomotive. This locomotive was successfully launched in April 2014, attracting impressive commercial interest from local and continental rail players. Transnet Engineering 2019 3 Internally, TE continues to focus on improving operational objectives. Engineering’s new operating model below illustrates efficiencies and a safe working environment through various how the division is structured, how it intends to interface with interventions such as continuous improvement and process customers and the products and services it will provide that will automation. define its value proposition to the market. TE will continue to forge and strengthen partnerships with OEMs with the aim being to enhance the existing skills and know-how and Where we operate to create new market opportunities. TE has plants and depots spread throughout South Africa, creating The division continues to strengthen its research and development a network of sites that serve the main rail corridors and ports. The (R&D) initiatives to ensure that it has cutting-edge technologies six main plants are located in Cape Town, Johannesburg, Durban, and capabilities to deliver world-class products and services. Bloemfontein, Pretoria and Uitenhage. Skills, enterprise, rural and supplier development continue to be These plants serve as regional centres for their satellite depots key focus areas of Engineering, with particular attention given to and provide them with support services. There are a total of the youth and women. Significant expenditure over the next few 143 maintenance depots. Out-of-service heavy maintenance and years will create opportunities for the division to identify and manufacturing are undertaken at the plants while the depots implement programmes that will address developmental concentrate on in-service maintenance of rolling stock. Beit Bridge Musina Makhado Soekmekaar Ellisras Polokwane Naboomspruit Tzaneen Thabazimbi Central Region Nylstroom Phalaborwa Northam Pienaarsrivier Marble Hall Hoedspruit Eastern Region Steelpoort Pretoria Rustenburg Pyramid South Graskop Western Region North Macmullins Pendoring Roossenekal Nelspruit Magaliesburg Belfast Kaapmuiden Transnet Engineering factories Rayton Mafikeng Witbak Machadodorp Pretoria Komatipoort Krugersdorp ▲ Ogies Transnet Corporate Centre Johannesburg Lichtenburg Sentrarand Delmas Vryburg Coligny Johannesburg Trichardt Bethal Vermaas Welverdiend ▲ Maydale Vereeniging Ermelo Hotzal Klerksdorp Volksrust Ottosdal Sasolburg Orkney Pudimoe Newcaslte Northcor Erts Makwassie Kroonstad Piet Retief Golela Sishen Dundee Nakop Gunhill Vryheid Capecor Warrenton Bethlehem Upington Harrismith Posmasburg Theunisen Danskraal Southcor Empangeni Kimberley Ladysmith Kakamas Marseillies Bergville Boksputs ▲ Estcourt Natalcor Bloemfontein Cedara Greytown Richards Bay Koffiefontein Maseru Pietermaritzburg Prieska Belmont Sannaspos Underburg Cato Ridge Stanger R. Baycor Kokstad Franklin Copperton Aliwal North Springfontein Richmond N. Westcor Barkly East ▲ Durban Bitterfontein De Aar Dreunberg Eastcor Burgersdorp Harding Liebendal Port Shepstone Noupoort Stormberg Maclear N. Eastcor Rosmead Hutchinson Sterkstroom Klawer Calvinia Umtata Cradock Queenstown Sishen-Saldanha Cookhouse Stutterheim Malmesbury Beaufort West Fort Sentracor Somerset East Kalbaskraal Beaufort Klipplaat Blaney Touwsrivier South East Cor Dal Alicdale Saldanha Bay Atlantis Josafat East London New Worcster Uitenhage ▲ Brighton Port Alfred Westcor Oudshoorn Avontuur Kraaifontein Patensie Cape Town Port Elizabeth Bellville Free State Mossel Bay Caledon George Knysna Bredasdorp Namibia Figure 1: Transnet Engineering’s geographic spread Regulatory environment Regulatory universe Engineering currently adheres to compliance with approximately 2002 (as amended by Act 69 of 2008), which provides for the 70 legislations, various applicable regulations and supervisory establishment of a Railway Safety Regulator whose mandate is to requirements. These legislations impose strict engineering, issue operating licences and oversee safety in the railway industry. governance, health and safety, environmental, labour and Like other rail operators, Transnet complies with stringent procurement compliance obligations and requirements. The application requirements of annual safety permits, which include the legislations include the National Safety Regulator Act, No 14 of establishment and maintenance of the safety management system. Transnet Engineering 2019 4 Performance context Strategic objective Contribution to strategic objective Reduce the total cost of logistics as a percentage of • Engineering will continue to source quality rolling stock components and material transportable GDP from low-cost suppliers in order to offer competitive products and services to the market. • The division will continuously benchmark its operations in the industry and incorporate best practice in its operations. Effect and accelerate modal shift by maximising the • The division will assist Freight Rail in improving operational efficiencies by role of rail in the national transport task concentrating on rolling stock availability and reliability and thereby position rail as an attractive alternative to road transportation. Leverage the private sector in the provision of both • Engineering continues to anchor partnerships with the rolling stock component infrastructure and operations where required manufacturers and financial institutions in the provision of rolling stock and related services both in South Africa and the rest of the continent. • Through research and development, Engineering is developing intellectual property in the rail-related industry with the view of partnering with the private sector in instances where other providers have manufacturing capacity and competencies. Integrate South Africa with the region and the • Engineering is positioning itself as a preferred manufacturer and maintenance rest of the world partner for rail and related equipment in Africa. Partnerships will be forged with local companies in Africa where synergies exist. Optimise the social and economic impact of all • Engineering is positioned as a centre of excellence for technical and engineering interventions undertaken by the SOC in the skills. The division is leveraging this capability to provide artisanal status, achievement of these objectives including the conversion of semi-skilled individuals into artisans through the recognition of prior learning. Operational performance Core initiatives for 2019 • Extend Engineering’s maintenance services to other Transnet • Engineering
Load more

Recommended publications
  • Tariff Book April 2020 to 31 March 2021
    Tariff Book TRANSNET NATIONAL PORTS AUTHORITY April 2020 to March 2021 PORT TARIFFS Nineteenth Edition 1 April 2020 Issued by: Transnet National Ports Authority Finance / Economic Regulation PO Box 32696 Braamfontein 2017 ISBN 978-0-620-56322-2 The tariff book is available on the Internet Website Address: www.transnetnationalportsauthority.net DISCLAIMER Port of Port Elizabeth Transnet National Ports Authority can not assure that the Tariff Book is free of errors and will therefore not be liable for any loss or damages arising from such errors. Tariff Book April 2020—March 2021 Tariff Book April 2020 - March 2021 02 CONTENTS SECTION 6 SECTION 8 DEFINITIONS 5-8 SECTION 4 DRYDOCKS, FLOATING DOCKS, BUSINESS PROCESSES AND SYNCROLIFTS AND SLIPWAYS DOCUMENTATION SECTION 1 PORT FEES ON VESSELS, MISCELLA- NEOUS 1. General terms and conditions 33 1. Cargo Dues Order 1. LIGHT DUES 9 FEES AND SERVICES 2. Booking fees 33 1.1 Types of documentation 50 2. SOUTH AFRICAN MARITIME 10 3. Penalties 34 1.2 Timing of documentation 51 SAFETY AUTHORITY 1. Port fees on vessels 4. Preparation 34 2. Responsible party 52 (SAMSA) LEVY 1.1 Port dues 21 5. Docking and undocking of ves- 35 3. Late order fees 52 1.2 Berth dues 22 sels 4. Amending orders 53 SECTION 2 2. Port dues for small vessels, hulks 24 6. Drydock, floating dock and 36 5. Terminal Outturn report 53 and pleasure vessels syncrolift dues 6. VESSEL TRAFFIC SERVICES (VTS) 3. Miscellaneous services 7. Slipway 39 6.1 Port Revenue Offices 54 3.1 Fire and emergency services 26 8.
    [Show full text]
  • Challenges and Developments Facing SA Coal Logistics”
    “Challenges and developments facing SA Coal Logistics” IHS Energy SA Coal Conference 1 February 2019 Mandisa Mondi, General Manager: Coal BU - Transnet Freight Rail Transnet Freight Rail is a division of Transnet SOC Ltd Reg no.: 1990/000900/30 An Authorised Financial 1 Service Provider – FSP 18828 Overview SA Competitiveness The Transnet Business and Mandate The Coal Line: Profile Export Coal Philosophy Challenges and Opportunities New Developments Conclusions Transnet Freight Rail is a division of Transnet SOC Ltd Reg no.: 1990/000900/30 2 SA Competitiveness: Global Reserves Global Reserves (bt) Global Production (mt) Despite large reserves of coal that remain across the world, electricity generation alternatives are USA 1 237.29 2 906 emerging and slowing down dependence on coal. Russia 2 157.01 6 357 European countries have diversified their 3 114.5 1 3,87 China energy mix reducing reliance on coal Australia 4 76.46 3 644 significantly. India 5 60.6 4 537 However, Asia and Africa are still at a level where countries are facilitating access to Germany 6 40.7 8 185 basic electricity and advancing their Ukraine 7 33.8 10 60 industrial sectors, and are likely to strongly Kazakhstan 8 33.6 9 108 rely on coal for power generation. South Africa 9 30.1 7 269 South Africa remains in the top 10 producing Indonesia 10 28 5 458 countries putting it in a fairly competitive level with the rest of global producers. Source: World Energy Council 2016 SA Competitiveness : Coal Quality Country Exports Grade Heating value Ash Sulphur (2018) USA 52mt B 5,850 – 6,000 14% 1.0% Indonesia 344mt C 5,500 13.99% Australia 208mt B 5,850 – 6,000 15% 0.75% Russia 149.3mt B 5,850 – 6,000 15% 0.75% Colombia 84mt B 5,850 – 6,000 11% 0.85% S Africa 78mt B 5,500 - 6,000 17% 1.0% South Africa’s coal quality is graded B , the second best coal quality in the world and Grade Calorific Value Range (in kCal/kg) compares well with major coal exporting countries globally.
    [Show full text]
  • Capacity Creation Is the Top Priority in South African Ports Transnet Port Terminals, Durban, South Africa
    CONTAINER HANDLING Capacity creation is the top priority in South African ports Transnet Port Terminals, Durban, South Africa Nowhere in South Africa is the rapid upsurge in economic activity and growth more evident than in its commercial ports. Historically neglected and under-funded prior to 1994, during the country’s economic sanctions and apartheid era, South Africa’s ports have since been experiencing booming business, and state- owned transport and freight entity Transnet Limited has been at pains to ensure it creates capacity ahead of demand in its busy terminals. Introduction Transnet’s port operating division, Transnet Port Terminals, has steadily increased its overall investment from a mere R131m in 2001/02 (GBP £10.6 billion) to more than R3.2bn (£259 million in 2008/09.) The division will now spend R6.5 billion (approximately £528 million) over the next five years on capital investments. These Ngqura container terminal’s rail-mounted gantry cranes with Liebherr ship-to- shore cranes in the background. are aimed at reducing the cost of doing business and enhancing its competitiveness as a global logistics player. Approximately 31 per cent of this will go towards increasing capacity, to achieve the company’s growth initiatives. Beefing up box capacity Capacity expansion programmes are currently underway at the major container terminals in South Africa. In Durban and Cape Town, as well as at the new deepwater Port of Ngqura, which launched to commercial trade in October 2009, such projects will assist in meeting the target of a 32 per cent increase in container capacity over five years, with spare capacity to deal with any growth in volumes.
    [Show full text]
  • Moving More Freight on Rail
    COPYRIGHT AND CITATION CONSIDERATIONS FOR THIS THESIS/ DISSERTATION o Attribution — You must give appropriate credit, provide a link to the license, and indicate if changes were made. You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use. o NonCommercial — You may not use the material for commercial purposes. o ShareAlike — If you remix, transform, or build upon the material, you must distribute your contributions under the same license as the original. How to cite this thesis Surname, Initial(s). (2012) Title of the thesis or dissertation. PhD. (Chemistry)/ M.Sc. (Physics)/ M.A. (Philosophy)/M.Com. (Finance) etc. [Unpublished]: University of Johannesburg. Retrieved from: https://ujdigispace.uj.ac.za (Accessed: Date). A PROJECT REPORT IN FULFILMENT OF THE REQUIREMENTS FOR THE DEGREE OF BACHELOR OF SCIENCE In THE FACULTY OF ENGINEERING AND THE BUILT ENVIRONMENT DEPARTMENT OF QUALITY AND OPERATIONS MANAGEMENT Methods for Improving the Turn-around Time of Iron Ore Wagon Utilisation at Transnet THEMBISILE ANNAH MABHENA SUPERVISOR: PROF. CHARLES MBOHWA CO-SUPERVISOR: STEPHEN AKINLABI EXTERNAL EXAMINER: ----------------------------- December 2015 1 AGREEMENT PAGE In presenting this report in fulfilment of the requirements for a degree at the University of Johannesburg, I agree that permission for extensive copying of this report for scholarly purposes may be granted by the head of my department, or by his or her representatives. It is understood that copying or publication of this report for financial gain would not be allowed without my written permission. _____________________________________________________ Department of Quality and Operations Management The University of Johannesburg APB Campus P O Box 524 Auckland Park 2006 Johannesburg South Africa Date: 20 October 2015 Signature _________________ 2 ABSTRACT Transnet Freight Rail (Transnet Freight Rail) focuses on optimising supply chains in the Ore industry by providing integrated logistical solutions.
    [Show full text]
  • Freight Rail 2018 TRANSNET Freight Rail 2
    A A U D Freight Rail 2018 TRANSNET Freight Rail 2 Highlights • Transnet Freight Rail has continued to actively seek opportunities to service existing customers and new customers, which has resulted in a 3,3% volume growth compared to 2,3% in the previous financial year. This was despite the subdued economic climate characterised by low GDP growth and lower than expected commodity prices. This commendable performance was accomplished through collaboration with customers and value chain partners as well as dedication and a continuous improvement culture embedded in accountability among employees. • Export coal line railed 77 mt against the target of 76 mt. This reflects a historic tonnage performance achievement for this corridor since its opening in 1977, and surpasses the record of 76,2 mt achieved in 2015. • General freight tonnages recorded 3,1% growth against the previous financial year (well above the national economic growth rate). This is evidence of the successful implementation of the road-to-rail strategy, which targets rail-friendly traffic in various market segments to grow rail volumes and market share. General freight commodities that contributed to this growth included the following: – Non-ferrous metals achieved a 115% improvement, recording volumes of 2,8 mt against the target of 1,3 mt. – The Manganese portfolio achieved a record throughput of 13,7 mt against a target of 11,1 mt. This represents an improvement of 23,7% against target and growth of 13,5% year on year (2017: 12,1 mt). – The Containers and Automotive business unit exceeded the volume target of 9,0 mt by railing 9,8 mt, reflecting an improvement of 9,0% against target and growth of 7,4% year on year (2017: 9,2 mt).
    [Show full text]
  • Freight Rail Also Commodity Prices, Which Negatively Impacted Customers’ Markets, Manganese Met Export Volumes of 7,2Mt
    Musina Louis Trichardt Groenbult MOZAMBIQUE FREIGHT BOTSWANA Lephalale Polokwane Phalaborwa Vaalwater Zebediela Steelpoort RAIL Middelwit Modimolle Marble Hall Nelspruit Komatipoort Witbank NAMIBIA Mafikeng Kaapmuiden Vermaas Ermelo SWAZILAND Ottosdal Vereeniging Vryburg Hotazel divisionKle operatesrksdorp world-class, heavy-haul coal and iron The 2016 operating context was characterised by lower HIGHLIGHTS Pudimoe REGULATORY ENVIRONMENT Makwassie Vrede ore exportKr oolines,nstad and is developingVryh etheid manganese export than anticipated economic growth and significantly lower Nakop Sishen Warden Despite the decline in the manganese and iron ore Developments in rail policy and transport economic Upington Veertien Stcorridorrome V itorginia meet heavy-haulHarrismith standards. Freight Rail also commodity prices, which negatively impacted customers’ markets, manganese met export volumes of 7,2mt. Bethlehem regulation could result in changes for the South African Kimberley transports a broad range ofLa dbulkysmith general freight commodities operations and their demand for rail services. Further, the The Container and AutomotiveKakamas business unit achieved transport industry. The Department of Transport (DoT) Douglas and Bcontainerisedloemfontein freight. CommoditiesRich aarerds Ba yrailed across prolonged drought reduced the transportation of record performance, with the Tutuka Containerised Koffiefontein has embarked on a process of consultation for the Belmont approximatelyLESOTHO 20 500 kilometres (30 400 track agricultural commodities, which together with weakened Coal team clearing 33 trains from the mines and Pietermaritzburg development of the Green Paper on National Rail Policy kilometres) of rail network, of which approximately customer demand, adversely affected Freight Rail’s Franklin Durban offloading 33 trains at the terminal, against a Springfontein and the establishment of a Single Transport Economic 1 500 kilometres compriseHarding heavy-haul lines.
    [Show full text]
  • “We Are Poised to Become One of the World's Largest Freight Logistics Groups
    #1 2012/13 delivering freight reliably “We are poised to become one of the world's largest freight logistics groups. The Market Demand Strategy will see Transnet's revenue grow from R46bn in 2011/12 to R128bn in 2018/19." - BRIAN MOLEFE, Group Chief Executive: Transnet delivering freight reliably “History will judge whether Transnet produces lasting dividends for the South African economy, society and the environment." - Brian Molefe, Group Chief executive: Transnet PILLAR 1: ABOUT TRANSNET 2 Inside the business PILLAR 2: MARKET 4 A financially DEMAND STRATEGY sound company 19 What is the 6 The freight MDS? movers 22 Infrastructure 8 Intelligent projects engineering 25 Investment 10 Port control focus 12 Moving cargo 26 Supplier and volumes customer development 14 Fuelled and running 28 Empowerment through job 16 Building creation sustainable communities PILLAR 3: THE GLOBAL MARKET 30 Why do CONTENTS business with Transnet Web: www.transnet.net Tel: +27(0)11 308 3000 1. Go to www.scanlife.com from your FOLLOW US HERE mobile browser. Choose the “Download Scanlife” option. Stay abreast 2. Press the download button when of company the site auto-detects your device. developments (If it doesn’t, search for a device that by following is similar to your phone.) us on our 3. The application will be downloaded to website either “Downloads” or “Applications”. and these You should now be able to scan any QR code. Scan any of the QR codes social media alongside to check that the app is channels. working properly. TRANSNET ISSUE 1 2012/2013 1 2 TRANSNET ISSUE 1 2012/2013 TRANSNET | GROUP STRUCTURE ABOUT US Being responsible for enabling the growth and significantly boost infrastructure development, development of the South African economy job creation and investment in South Africa, and through reliable freight transport is no expose the country to a host of international trading possibilities.
    [Show full text]
  • Chapter 6: Transport Infrastructure
    6 TRANSPORT INFRASTUCTURE CHAPTER 6 / TRANSPORT INFRASTRUCTURE PAGE 6-1 6.1 Introduction This chapter provides an overview of the current state of . Green Paper on National Rail Policy – currently being transport infrastructure – the hard engineered, designed and developed constructed infrastructure that refers to the physical Green Paper on National Maritime Transport Policy – networks required for the functioning of today‟s modern . currently being developed economy, as well as the related analysis and forecasting. It includes interventions required to align the road, rail, air, . Transnet Long Term Planning Framework 2014 maritime, and pipeline transport modes with the NATMAP . National Airports Development Plan 2050 Spatial Vision. It also shows alignment to spatial . Airspace Master Plan development by demonstrating how and where strategic Aerotropolis integrated projects (SIPs) are located in support of economic . and population growth. Ocean economy: Operation Phakisa Programme. The DoT‟s PSP framework and implementation plan are 6.2 Significant Plans, Concepts and intended to give input into the broader National Treasury Context process that intends to provide a standardised mechanism for private sector participation throughout the government. Several critical strategies, projects and concepts have been established since the development of the NATMAP 2050, The impact of each of these is detailed per infrastructure providing guidance on the future development of transport type in the remainder of this chapter. infrastructure and the achievement of goals pertaining to national economic development and future economic growth in South Africa. These include but are not limited to the following: . National Development Plan 2030 (NDP 2030) . Strategic integrated projects (SIPs) . Regional integration and connectivity .
    [Show full text]
  • Transnet Action Plan to Monitor the Coronavirus
    Transnet Action Plan to Monitor the Coronavirus As a custodian of rail, ports and terminals, Transnet SOC Limited has set-up a Command Centre to closely monitor the coronavirus (COVID19) outbreak. The Command Centre will be responsible for the coordination and monitoring of all vessels docking into all the eight South Africa’s commercial seaports, namely Richards Bay, Durban, East London, Ngqura, Port Elizabeth, Mossel Bay, Cape Town and Saldanha. This also includes monitoring of passengers on Transnet’s Blue Train. Transnet, which is responsible for vessel berthing and unloading of goods from vessels coming from different countries, is also rolling-out sanitizers and safety protective wear for employees. All procedures involving screening of the virus are done through the Port Health officials in collaboration with the Department of Health (DoH) and the National Institute of Communicable Diseases (NICD) to monitor the outbreak. The following additional measures are in place to safeguard South Africa’s ports and its employees: All employees at Transnet National Ports Authorities and Transnet Port Terminals interfacing with vessels from affected areas are continuously provided with all hygienic and protective equipment. Transnet has dispersed had sanitizers throughout the company. TNPA marine pilots are provided with appropriate personal protective equipment to use when receiving vessels from affected areas. All foreign vessels entering the ports must receive free pratique by the Port Health department and details of the last 10 ports of call are captured. Separate list of vessels calling from affected areas are recorded. During the warning period, all South African Citizens - including marine pilots - are to refrain from consuming foods and liquids on board vessels.
    [Show full text]
  • Freight Rail 2017
    FREIGHT RAIL 2017 United Digital Admired Agile CONTENTS Navigating this report Icons key HIGHLIGHTS 1 BUSINESS OVERVIEW 2 Market Demand Strategy (MDS) REGULATORY ENVIRONMENT 4 Financial Organisational sustainability readiness PERFORMANCE CONTEXT 5 OPERATIONAL PERFORMANCE 6 Capacity creation Sound governance and maintenance and ethics Core initiatives for 2017 6 Market segment Constructive Overview of key performance indicators 7 competitiveness stakeholder relations Looking ahead 10 Operational Sustainable excellence Developmental Outcomes Financial performance review 11 PERFORMANCE COMMENTARY 12 Human capital management Financial sustainability 12 13 Looking ahead Sustainable Developmental Outcomes (SDOs) Capacity creation and maintenance 13 – Export coal 13 Employment Transformation 13 – Export iron ore Skills Health – General freight 13 development and safety – Locomotives 14 Industrial Community capability building development – Wagons 14 14 Investment Environmental Looking ahead leveraged stewardship Market segment competitiveness 15 Regional Looking ahead 15 integration Human capital 16 Organisational readiness 17 The Capitals – High-performance culture and environment 17 Financial capital Human capital – Skills development 17 18 – Health and safety Social and Manufactured capital Looking ahead 18 relationship capital Governance and ethics 19 Intellectual capital Natural capital FREIGHT RAIL’S TOP 5 RISKS AND KEY MITIGATING ACTIVITIES 19 OPPORTUNITIES 20 Performance Key ABBREVIATIONS AND ACRONYMS 21 Improvement on prior Target achieved
    [Show full text]
  • An Investigation Into the Factors Contributing to Rail Freight Losing Market Share: a South African Perspective
    AN INVESTIGATION INTO THE FACTORS CONTRIBUTING TO RAIL FREIGHT LOSING MARKET SHARE: A SOUTH AFRICAN PERSPECTIVE L PHALADI, Z TOLI* and C MARA** University of Johannesburg; University of Johannesburg, P O Box 624, Auckland Park, 2006, Gauteng Tel: 083 254 4070 *Tel: 083 954 9858 or 011 583 0464; Email: [email protected] **Tel: 011 559 4432 or 072 270 2291; Email: [email protected] ABSTRACT Transnet Freight Rail (TFR) has positioned itself in the market as a low cost provider of transporting freight, with the intention of achieving a sustainable competitive edge and a bigger market share. However, despite this strategy, which involves Market Demand Strategic planning, TFR has been losing market share to road freight and that has influenced the organisation’s revenue and sustainability. Transportation is a vital link in the value chain and contributes millions to an economy, yet produces many negative externalities, such as CO2 emissions. In South Africa, rail and road are the preferred modes of transport, and while railway transport produces less than one third of the emissions produced by road transport, the latter has become the preferred mode. Freight rail is losing market share to road freight and this study investigated the reasons. An interpretivist, qualitative content analysis was performed. Eight senior managers at Transnet Rail Freight were interviewed and it was found that the organisation lacks management skills, is unable to adapt to market demands; operates under unfavourable economic conditions; has to get by with aging infrastructure; under-utilises other assets; and is not customer centric. It is recommended that a skills audit be performed, and an audit of underutilised assets.
    [Show full text]
  • Transnet Annual Report 2006 1 HIGHLIGHTS
    delivering on our commitments 06 ANNUAL REPORT 2006 CONTENTS Strategic intent 1 Highlights 2 Company structure 3 Consolidated salient features 4 Consolidated performance indicators 5 Board of directors 6 Executive committee 8 Chairman’s statement 9 Group Chief Executive’s review 12 Chief Financial Officer’s report 22 Consolidated value added statement 26 Consolidated five-year review 27 Corporate governance 28 Sustainability report 31 Operational report – Spoornet 40 Operational report – Petronet 45 Operational report – National Ports Authority (NPA) 48 Operational report – South African Port Operations (SAPO) 52 Operational report – Transwerk 56 Operational report – South African Airways (SAA) 60 Audit Committee report 64 Contents to the annual financial statements 65 Glossary of terms 170 STRATEGIC INTENT Focused Delivering Enabling freight efficient and Strategy economic transport competitive growth company services Transnet is a diversified transport and logistics group wholly owned by the South African Government. With over 65 000 employees and assets in excess of R77 billion, the Group seeks to provide integrated, seamless transport solutions for its customers in the bulk and manufacturing sectors as part of the drive to increase the competitiveness of the South African economy. Transnet is currently transforming into a focused company comprising its port, rail and pipeline businesses. The refocus is designed to ensure that Transnet delivers a reliable service to all its customers, an acceptable rate of return to its shareholder
    [Show full text]