A Stratified Systems Framework for the North-South Rail Corridor in Southern Africa (Business Model and Concept of Operations)
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A Stratified Systems Framework for the North-South Rail Corridor in Southern Africa (Business Model and Concept of Operations) Student Name: Paul Michael Bester (Student number: 888393) School of Mechanical, Industrial and Aeronautical Engineering University of the Witwatersrand Johannesburg, South Africa. Supervisor: Dr A Botha A research project report submitted to the Faculty of Engineering and the Built Environment, University of the Witwatersrand, in partial fulfilment of the requirements for the degree of Masters in Engineering. Date: 8 October 2019 Version: 2 CONTENTS 1 INTRODUCTION ............................................................................................. 11 1.1. The North-South Corridor (NSC) Rail System in Southern Africa .................. 11 1.2. Performance of the NSC-Rail System ............................................................. 11 1.3. Forecasted Growth of Traffic on the NSC ...................................................... 11 1.4. Overall Aims of the Study .............................................................................. 13 2 FORMULATION OF PROBLEM...................................................................... 14 2.1. Problem Statement ......................................................................................... 14 2.2. Research Background .................................................................................... 14 2.3. Specific Aims of the Study ............................................................................ 16 3 LITERATURE REVIEW ................................................................................... 17 3.1. Freight Transportation and Logistics Systems ................................................ 17 3.2. Whole Systems Approach (System of Systems) ............................................. 17 3.3. Systems Engineering ..................................................................................... 19 3.4. Rail Corridor Business Model Applications (Concept of Operations) ............. 19 3.5. Freight Transportation Requirements / Market Segmentation ......................... 20 3.6. Rail Economics.............................................................................................. 21 3.7. Transportation Modes .................................................................................... 22 3.8. Business Modelling ....................................................................................... 22 3.9. Rail Freight Modelling / Operating Concept Description ............................... 24 3.10. Stratified Systems Theory .............................................................................. 24 3.11. Viable Systems Model.................................................................................... 25 3.12. System Dynamics ........................................................................................... 26 3.13. System Effectiveness...................................................................................... 27 3.14. System Efficiency .......................................................................................... 27 3.15. Innovative- / Disruptive- / Emerging- Technologies ....................................... 27 3.16. Sub-Saharan NSC .......................................................................................... 28 4 RESEARCH METHODOLOGY ........................................................................ 29 4.1. Research Approach ........................................................................................ 29 4.1.1. Mixed Methods Research ............................................................................... 29 4.1.2. Qualitative Research ...................................................................................... 30 4.1.3. Quantitative Research .................................................................................... 30 4.2. Research design ............................................................................................. 31 4.2.1. Qualitative Data Analysis ............................................................................... 32 4.3. Operationalising a Business Model Framework for the NSC .......................... 33 4.3.1. Osterwalder’s (2009) Business Model Canvas Framework ............................. 33 4.3.2. Zhang (2010) Business Model for a Rail Freight Service ................................ 33 4.3.3. The Application of the Business Model Canvass to the NSC Rail System ...... 34 4.4. Data Collection Methodologies ...................................................................... 36 4.4.1. Required Research Data ................................................................................. 36 4.4.2. Data Collection .............................................................................................. 38 4.4.3. Analysis of SADC and NSC-Rail System related reports ................................ 38 4.4.3.1. Sourcing of Reports .................................................................................... 39 4.4.4. Corridor Routing Analysis.............................................................................. 39 4.4.4.1. Information Sourcing ................................................................................. 39 4.4.4.2. Data analysis .............................................................................................. 40 4.4.5. Records of NSC Stakeholder work-sessions ................................................... 40 4.4.5.1. Sourcing of Information ............................................................................. 40 4.4.6. Research Questionnaires ................................................................................ 40 4.4.6.1. Sourcing of Responses ............................................................................... 41 4.4.6.2. Data analysis .............................................................................................. 41 1 4.5. Ethical considerations ........................................................................................ 42 4.6. Concluding remarks ........................................................................................... 43 5 RESULTS OF THE STUDY ................................................................................ 44 5.1. NSC-Rail System related reports. ....................................................................... 44 5.1.1. NEPAD Business Foundation ......................................................................... 44 5.1.1.1. Current traffic transported by the NSC-Rail System ................................... 45 5.1.1.2. NSC-Rail System Operators ....................................................................... 45 5.1.1.3. Recorded issues to be resolved ................................................................... 45 5.1.2. Grinrod Integrated Annual Report (2014) ....................................................... 46 5.1.3. Transnet Freight Rail (TFR) ........................................................................... 46 5.1.3.1. TFR Business Units .................................................................................... 47 5.1.3.2. TFR National Command Centre (NCC) (for integrated rail operations) ...... 47 5.1.3.3. Switching from road to rail ......................................................................... 48 5.1.4. Africa Infrastructure Country Diagnostic Report (2011) ................................. 49 5.1.5. Ivanhoe Mines LLC, Kamoe–Kakula 2017 Development Plan ....................... 49 5.2. Routing Analysis of the NSC-Rail System ......................................................... 50 5.2.1. NSC-Rail System Routing Diagram ............................................................... 50 5.2.2. Detailed Route Map of the NSC-Rail System ................................................. 51 5.2.3. System Diagram for the NSC-Rail System ..................................................... 55 5.3. NSC-Rail System stakeholders work sessions .................................................... 58 5.3.1. Purpose of stakeholder work sessions ............................................................. 58 5.3.2. Concept of Operations .................................................................................... 59 5.3.3. Joint Operations Centre .................................................................................. 61 5.4. Responses to Research Questionnaires ............................................................... 62 5.4.1. Research Questionnaire .................................................................................. 62 5.4.2. Analysis of Responses to Research Questions ................................................ 62 5.4.2.1. Participation in the research ........................................................................ 62 5.4.2.2. Stakeholder representatives ........................................................................ 62 5.4.2.3. Roles of the Stakeholder Organisations within the NSC-Rail System .......... 64 5.4.2.4. Views on an Integrated and Harmonised NSC-Rail System ........................ 66 5.4.2.5. Views on Organisation’s interactions with NSC ......................................... 68 5.4.2.6. Contributions Expected from other NSC Stakeholders ................................ 70 5.4.2.7. Harmonising the NSC Rail Operations ....................................................... 71 5.4.2.8. General Comments and Inputs to the Research ..........................................