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 ...
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#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
ENTS
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
CONT
development
14 Fuelled and
running 28 Empowerment
through job
16 Building creation
sustainable
communities PILLAR 3: THE
GLOBAL MARKET
30 Why do
business with
Transnet
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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.
easy feat but Transnet, through its vision, The nature and scope of Transnet’s operations
mission and mandate policies, forges ahead – necessitates a proactive and concerted effort
in maintaining the highest standard of safety,
ensuring all its strategic objectives line up. health, environmental and quality (SHEQ)
governance. SHEQ performance targets are
included in the company’s strategy to promote
A
a safe and healthy working environment for its
s a state-owned company (SOC), employees, who are striving towards excellence
Transnet is wholly owned by the in service delivery. The environmental-related
government of the Republic of obligations arise from the National Environmental
South Africa (RSA) and is structured Management Act of 1998, the National Water
to provide transport and handling Act of 1998 and the National Environmental
services through its five operating divisions, Management Act: Waste Act of 2008, requiring
namely, Transnet Freight Rail (TFR), Transnet the company to remove all its waste material
Rail Engineering (TRE), Transnet National Ports and remediate the land. In accordance with these
Authority (TNPA), Transnet Port Terminals (TPT) acts, an environmental provision of R1.8 billion
and Transnet Pipelines (TPL). Special units was allocated in the current financial year for the
include Transnet Property, Transnet Foundation remediation of soil-contaminated areas. With
and Transnet Capital Projects. regard to quality, the ISO 9001:2008 Quality
The company is the custodian of freight Management System plays a crucial role in
rail, ports and pipelines and is responsible improving business processes and performance
for enabling the competitiveness, growth and within Transnet, and the current system will be
development of the South African economy updated to meet the challenges of the MDS.
through the delivery of reliable freight transport Moving forward, Transnet has embedded
and the handling of services that satisfy sustainability into its strategy and business
customer demand. Overall, Transnet’s mandate practices by adopting a well-defined
is to lower the cost of doing business in South Sustainability Framework as part of the
Africa – efficiently – and within acceptable MDS. Through this framework, the company’s
benchmarks. The company recently embarked economic, social and environmental dividends
on its biggest project to date – the R300 billion are constantly tracked, placing Transnet at the
Market Demand Strategy (MDS), which will forefront of change in South Africa.
GROWTH IN RAIL
R160m 20.9% VOLUMES TO 33% NEW
WORDS: CANDICE LANDIE
EMPLOYEES
201 3 159
DISBURSED INCREASE INCREASE ON
TO CSI IN REVENUE B-BBEE SPEND
IN 2012 FOR 2012 TO R25.8BN
MILLION TONS
TRANSNET ISSUE 1 2012/2013 3
RESHAPING AFRICA
While many global economies continue to face
uncertainty, the longer-term outlook remains positive
for South Africa and the region, with continued growth
in emerging economies driving increased commodity
demand - and Transnet is at the frontline of this growth
with its new Market Demand Strategy.
C
hanging global and regional trade ore, cement, agricultural commodities and
patterns benefit South Africa containers. Transnet’s record-breaking capital
as increased trade volumes and investment programme, a key element in its
connectivity make it easier for local drive to boast efficiency and create capacity,
companies to participate in global was R22.3 billion for 2012.
manufacturing supply chains. South Africa
is highly integrated with the world economy, IT’S ALL IN THE NUMBERS
which plays a central role in shaping Transnet’s Transnet’s revenue during the 2012 financial
economic prospects. year increased by 20.9% to R45.9 billion – a
Despite the deterioration of the country’s big jump from 2011’s figure of R38 billion.
annual real growth rate as calculated by the Significant productivity and efficiency
South African Reserve Bank, the outlook for improvements of 18%, not to mention volume
Transnet has achieved yet
Transnet’s key commodities remains positive. growth, were realised across all five operating
another year of robust The aggressive investment that underpins the divisions. This statement demonstrates that the
performance and is well Market Demand Strategy (MDS) is targeted company has achieved yet another year of robust
on its way to delivering primarily at satisfying demand that has been performance and is well on its way to delivering
on its commitment to on its commitment to various stakeholders.
validated with customers. This includes
various stakeholders.
additional capacity for export coal, iron General freight volumes during 2012
ore and manganese as well as key domestic increased by 8.8% to 67.7 million tons (mt),
commodities such as coal, magnetite, iron another improvement on 2011 figures. This
4 TRANSNET ISSUE 1 2012/2013
TRANSNET | OUTLOOK & FINANCIALS
increase was due to on-time departures, which the previous year – evidence of Transnet’s
set a new weekly record of 1.7mt. ability to generate strong sustainable cash
Export iron ore volumes increased by 13.2% flows. Significant focus and improved working
to 52.3mt as compared with the 2011 figure capital management, not forgetting improved
of 46.2mt. This achievement was also mainly collections relating to the Passenger Rail
as a result of increased departure and arrival Association of South Africa (PRASA), resulted R2.2bn
efficiencies. Container volumes increased by in a working capital inflow of R781 million. The WAS INVESTED
6.6% due to an increase in transshipments while cash interest cover ratio remains strong at IN TRANSNET’S
dry bulk increased by 7.7% and automotive 4.2 times (2011: 3.9 times). This is impressively COAL LINE
EXPANSION AND
volumes by 9.3%. above the target of 3.0 times despite an
THE ACQUISITION
increase in net finance costs resulting from OF CLASS 19E
CUSTOMER SATISFACTION increased borrowings to fund the capital LOCOMOTIVES
Following several stakeholder engagements, investment programme. It is expected that the
it is clear that service delivery, innovation, cash interest cover ratio will not fall below the
CAPITAL
reliability, safety and communication are among target going forward.
INVESTMENT FOR
the important concerns raised by Transnet’s Despite the uncertain global financial 2012 AMOUNTED
customers. The customer engagements proved markets and economic growth outlook (both TO A RECORD
invaluable with Transnet’s strategic responses locally and abroad), Transnet successfully
R22.3bn
leading to the achievement of significant raised the funding required for its capital
volume increases and operational efficiency investment programme. At the beginning of
improvements. The outcomes include:
Developing the Transnet pricing / tariff
the 2012 financial year, funding required was
estimated at R20.8 billion. As a result of
R10.7bn
WAS INVESTED
guidelines, best practice methodology and pre-funding activities in the previous year, IN MAINTAINING
models to sustain capital investment and funding was reduced to R12.9 billion. TRANSNET’S EXISTING
support volume growth; Transnet repaid borrowings amounting to CAPACITY
Designing a transparent capacity allocation R14 billion, which related predominantly to
framework and processes to ensure fair
allocation of capacity;
domestic bonds, commercial paper and domestic
and foreign loans that matured during the year.
R11.6bn
OF THE CAPITAL
Implementing expanded and enhanced The gearing ratio deteriorated marginally to SPEND FOR 2012
integrated customer planning; 42.1% compared to 41.1% as at 31 March WAS INVESTED
Developing enhanced key account 2011, despite the capital expenditure of R22.3 IN EXPANDING
management capabilities; billion. This level is still well below Transnet’s
CURRENT
INFRASTRUCTURE
Driving continuous improvement to enhance target range of 50.0%, reflecting the significant AND EQUIPMENT
operational efficiency and productivity, and capacity available to fund future capital
to ensure security of fuel supply; expenditure. The gearing ratio is not expected to
Lowering the cost of doing business through exceed the target ratio going forward. AN ADDITIONAL
modal shifts, efficiency improvements and Transnet will continue to enhance financial risk3 159 NEW
transshipments; management throughout the capital investment EMPLOYEES WERE
HIRED DURING
Growing transshipment volumes, establishing programme and will seek to establish greater
2012 AND
South Africa as a transshipment hub and
increasing over-border rail volumes.
public policy and regulatory certainty with
the South African government and regulators.
27 964 NEW
JOBS WERE
Transnet is also working closely with customers Mitigating actions include managing cash and CREATED IN
to conclude long-term contracts in order to working capital, diversifying funding sources, SUPPLIER RELATED
reduce the risks associated with the execution and seeking innovative means for Private Sector INDUSTRIES
WORDS: CANDICE LANDIE
of the MDS. Participation (PSP) opportunities.
Holistically, Transnet’s financial
MONEY WISE fundamentals are strong and the company has
Cash generated from operations amounted shown significant operational improvement
to R20.6 billion, an increase of 27.6% from during the year – and more is expected!
TRANSNET ISSUE 1 2012/2013 5
FREIGHT MOVERS
As Transnet’s biggest operating division, Transnet
Freight Rail is a driving force for South Africa’s
economic growth.
I
n an export-driven economy like the one we of 79%. This strategy aims to deliver a lasting
have in South Africa, freight commodities economic, social and environmental value to
have to be delivered safely and reliably society.” Under the MDS, TFR aims to shift rail-
– and that’s where Transnet Freight Rail friendly traffic from road to rail, transporting
(TFR) comes into the picture. As the 225 million tons of freight in 2012/13 while
biggest division within Transnet, TFR employs growing its market share from about 24% to
approximately 28 000 people and boasts about 36% in 2018/19.
revenues higher than the company’s other
divisions. It also bears the responsibility for PROVEN TRACK RECORD
maintaining and operating a rail network that That bright future comes on the back of some
covers the entire country, including the lucrative remarkable successes in recent
coal export line running between the mineral- years. “In the 2011/12
rich Waterberg and the KwaZulu-Natal coast. financial
“Transnet Freight Rail has positioned
itself to become a profitable and sustainable
freight railway business, assisting in
driving the competitiveness of the South
African economy,” says Mike Asefovitz,
Communications Manager: TFR. “Now that we
have the Market Demand Strategy in place,
TFR will not only grow the economy but will
assist with developing South Africa’s youth by
imparting skills and creating employment.” In the 2011/12 financial year,
we moved 201 million tons of
FUTURE GROWTH
The future is looking very bright indeed for
freight. This represents a 10.4%
TFR. Transnet’s seven-year Market Demand increase on the previous year
Strategy (MDS) is expected to catapult TFR to
being one of the top five rail freight companies
and the highest tonnage
in the world. This, of course, will dramatically transported in the
boost the division’s regional and international company’s history.
profile. At the same time, TFR is anticipating
major increases in outputs. “Rail volumes are
expected to increase from the 201 million tons
we moved this past financial year to 350 million
tons in 2019,” Asefovitz explains. “By then,
TFR will have increased its market share of
container traffic to 92% from the current level
6 TRANSNET ISSUE 1 2012/2013
TRANSNET | FREIGHT RAIL
year, we moved 201 million tons of freight,” says
Asefovitz. “This represents a 10.4% increase on
the previous year’s 182.1 million tons and the
highest tonnage transported in the company’s
history. Then in October 2011, the number of
trains run per day increased by 42.1% from
800 trains per day to 1 444. Revenue was up by
22.3% and operating profit increased by 29.4%.”
Meanwhile, TFR’s Disabling Injury Frequency
Rate (DIFR) improved from 1.22 in the previous
year to 0.90, resulting in an 81.3% reduction
in safety costs from R790.9 million
the previous year to
R148.1
million.
In November 2011 TFR
introduced a scheduled railway
concept to ensure the delivery of a
reliable, on-time and predictable train
service for all its valued customers. This
simple but profound shift in focus has already
brought increased efficiencies – and it required
a hands-on engagement with customers.
80%
Then in March 2012 TFR changed its
business structure by moving from regions to
Business Units. Those six Business Units are:
Agriculture and Bulk Liquids; Steel and Cement;
OF THE TOTAL
AFRICAN RAIL Mineral Mining and Chrome; Coal; Iron Ore and
NETWORK IS Manganese; and Container and Automotive
MAINTAINED BY TFR Business. “Business Units are operations
managed in smaller chunks and this approach
R14bn
will help the company to pay more attention to
customer needs,” says Asefovitz, once again
pointing to TFR’s customer-centred focus.
TFR’S ESTIMATED
ANNUAL REVENUES
CORE FOCUS
17
TFR is uniquely placed to dramatically alter
South Africa’s rail industry and to transform the
THE NUMBER OF
country’s society and economy. The division’s
AFRICAN COUNTRIES IN strategic plan aligns with Transnet’s overall
WHICH TFR IS ACTIVE intent and vision. Its focus is on driving future
17%
growth, enhancing accountability, improving
governance and operational efficiency, and
servicing customers. TFR’s goal is to develop
skills, increase South Africa’s competitiveness
WORDS: MARK VAN DIJK
OF SA FREIGHT IS MOVED and reduce the cost of doing business by
ANNUALLY BY TFR,
transferring freight traffic from road to rail
INCLUDING 100% OF
EXPORT COAL AND – all while building a culture focused on
EXPORT IRON ORE customer-service excellence.
TRANSNET ISSUE 1 2012/2013 7
ON TRACK
Transnet Rail Engineering plays a key role in supporting the
important Freight Rail business – and also serves other rail
operators in Southern Africa and around the world.
TRE’S R85m R1.5bn R7bn
R11bn APPROXIMATE
ANNUAL
REVENUE
INVESTMENT
IN R&D
IN PAST THREE YEARS
THE EXTENT OF TRE’S
CAPEX OVER THE PAST
THREE YEARS
THE TOTAL
VALUE
OF TRE’S ASSETS
8 TRANSNET ISSUE 1 2012/2013TRANSNET | RAIL ENGINEERING
I
t’s no easy task to describe adequately what A PROUD HERITAGE
Transnet Rail Engineering (TRE) contributes As Transnet’s engineering division, TRE boasts a
to Transnet’s business efficiency and its history that dates back to the first railways built
bottom line. Mduduzi Nxasana, General in Southern Africa. In May 2012, TRE celebrated
Manager: Communications, TRE, sums it this rich heritage by marking the 150th
up in this way: “TRE provides maintenance, anniversary of its Salt River Engineering Works
repair, upgrade, manufacturing and support plant in Cape Town. This plant – one of six TRE
services to Transnet Freight Rail (TFR) in factories around South Africa – has grown from
South Africa and to other rail and terminal the original workshops, built in 1862, to maintain
operators both regionally and internationally.” the rolling stock on the Cape’s first railway
TRE’s internal structure comprises line. It now maintains the seven-kilometre-long
nine product-focused operational businesses. trains (the longest in the world) that operate on
These businesses are Locomotive, Wagon, Transnet’s Sishen-to-Saldanha heavy haul iron
Coach, Rolling Stock Equipment, Rotating ore export corridor.
Machines, Wheels, Auxiliary, Foundation TRE’s other factories are based in Uitenhage,
and Port Equipment Maintenance. near Port Elizabeth in the Eastern Cape;
“The Locomotive, Wagon and Coach Bloemfontein in the Free State; Durban
businesses are the primary customer-facing in KwaZulu-Natal; and Germiston and
entities and revenue generators,” explains Koedoespoort in Gauteng. These factories
Nxasana. “The other operational businesses are supported by 132 depots that employ
provide a supportive role within the organisation, more than 13 000 people across South Africa.
with the exception of the Auxiliary business,
which has a substantial portion of its activity A BIG DEAL… AND A BRIGHT FUTURE
focused directly on serving TFR. Port Equipment The Koedoespoort manufacturing centre is the
Maintenance is a newly established business focal point of a deal struck between Transnet
that serves South Africa’s national ports.” and GE South Africa Transportation (GESAT) in
2009, and later expanded in January 2012. The
GROWING BUSINESS INTERNALLY deal – which sees TRE contracted to GESAT and
AND EXTERNALLY GESAT contracted to TFR – involves supplying
As a support division, TRE places great TFR with 143 heavy haul diesel locomotives
emphasis on internal growth, while also seeking to haul freight and coal across South Africa.
opportunities to expand its external operations. In line with Transnet’s commitment to meet
“Internally, TRE continues to focus on improving Competitive Supplier Development Programme
operational efficiencies and a safe working objectives, the agreement has a significant
environment through the implementation localisation and skills-development element,
of Lean Six Sigma principles, safety and with a substantial portion of the manufacturing –
environmental initiatives,” Nxasana explains. “It including assembly, testing and commissioning –
also forges and strengthens partnerships with being done by TRE. Ten of the locomotives were
original equipment manufacturers (OEMs) with manufactured in the USA and the balance of 133
the aim of enhancing existing skills and know- are being assembled locally at Koedoespoort
how, and creating new market opportunities.” with kits provided by GESAT.
Meanwhile, TRE continues to grow its external “These locomotives represent great
revenue by focusing on major clients such as the opportunities for Transnet and South Africa
Passenger Rail Agency of South Africa (PRASA). as well as for GESAT,” says Nxasana. “We can
Transnet is committed “TRE is preparing itself to play a major role in deploy three C30ACi models to haul a load that
to building and the PRASA recapitalisation programme. It also would require four older locomotives, reducing
enhancing local skills, continues to grow its revenue from external annual diesel fuel consumption by 600 000 litres
WORDS: MARK VAN DIJK
hence a significant
customers, particularly those in Southern Africa,” under typical operating conditions. It can reduce
portion of locomotive
manufacturing is Nxasana says, adding that TRE intends to expand emissions by 1 500 metric tons of CO2 annually,
handled by TRE. this regional market to include narrow-gauge rail equivalent to eliminating the emissions from
operators around the world. 310 cars on South African roads.”
TRANSNET ISSUE 1 2012/2013 9PORT PERFECTION
T
Keeping South Africa’s eight he three most crucial performance
commercial ports running measures at any port are time at
anchor, time at berth and crane
safely and efficiently is movements per hour, which
the core concern of their determines how fast cargo is loaded
and unloaded. Any significant delays translate
landlord, the Transnet into significant losses for a shipping company.
National Ports Authority. As landlord of South Africa’s eight commercial
ports – Richards Bay, Durban, East London,
Ngqura, Port Elizabeth, Mossel Bay, Cape Town
and Saldanha Bay – Transnet National Ports
Authority (TNPA) is responsible for ensuring that
the national port system functions smoothly,
efficiently and safely. It facilitates optimum
10 TRANSNET ISSUE 1 2012/2013TRANSNET | NATIONAL PORTS AUTHORITY
The new cranes have a lifting capacity of 140 tons
and will enable us to be faster, safer and more
space-efficient in the transportation of containers.
performance in port by planning, providing and Another important milestone in South Africa’s
maintaining port infrastructure, port services, maritime history was achieved when the first
and navigation and manoeuvring assistance to three black female marine pilots graduated from
vessels within port limits and along the coast. The School of Ports.
STRIVING FOR BETTER PERFORMANCE FACING THE CHALLENGES
Over the past two years TNPA has worked In the past year, ship turnaround times were
tirelessly to ensure optimal productivity at all above target, sitting at an actual of 54 hours
South Africa’s ports. Its performance results compared to a target of 48 hours. This was
show that: primarily due to larger parcel sizes of cargo on
A favourable shipping delay performance container vessels, inclement weather conditions
was achieved. This was attributed to as well as crane breakdowns, particularly at
improved efficiencies in berthing services, Durban Container Terminal.
towage and pilotage. “We have resolved this problem by
All vehicle productivity targets were commissioning six new Liebherr mobile cranes,”
exceeded due to the primarily uniform cargo, says Thembenkosi Gumede, Communications
as well as container ports being able to Manager: TNPA, Port of Durban. “These cranes
perform pre-stacking/parking. have a lifting capacity of 140 tons and will
Loading rate targets were exceeded for dry enable us to be faster, safer and more space-
bulk cargo (iron ore at Saldanha Bay and coal efficient in the transportation of containers, as
at Richards Bay) thanks to improved joint well as to improve productivity and container
operational planning and the prevention of throughput at the terminal.”
loader breakdowns. TNPA is fully aware of the challenges it faces
TNPA strives toward
A significant recent highlight for the division in improving efficiencies and is determined to
optimal productivity
at all South African was the official opening of the Port of Ngqura achieve world-class standards in all aspects of
ports, thereby in March 2012. This new port has added an its operational performance.
facilitating smooth, annual capacity of 800 000 TEUs (twenty foot
safe operations. equivalent units) to the national port system.
The development of Phase 2, which has already
started, will see Ngqura’s capacity increase to
1.5 million TEUs. Ultimately capacity will be
increased to 2 million TEUs.
THE PORTS OF RICHARDS BAY, DURBAN, EAST LONDON, NGQURA, PORT ELIZABETH,
MOSSEL BAY, CAPE TOWN AND SALDANHA BAY BETWEEN THEM HAVE:
19 36
ENTRANCE Together, these harbours
CHANNELS are equipped with:
WITH
9 pilot boats, 2 pilot
WORDS: TONY STONE
SUPPORTING
BREAKWATERS, LIQUID- helicopters, 26 tugs,
BREAK- DRY-
TURNING BASINS, BULK CONTAINER 4 dredgers, 3 survey
NETWORKS AND BULK BULK
BERTHS BERTHS BERTHS boats and 7 work boats.
UTILITIES. BERTHS
TRANSNET ISSUE 1 2012/2013 11CHASING THE CLOCK Transnet Port Terminals is responsible for moving the vast amounts of cargo that flow through South Africa’s ports on a daily basis – as quickly and efficiently as possible. 12 TRANSNET ISSUE 1 2012/2013
TRANSNET | PORT TERMINALS
Containers
4 305 000
TEUs
T
ime is money and, once a ship berths, equivalent units). Dry bulk and break-bulk
DRY BULK the clock is ticking. Loading and volumes increased by 6.6% to 82.9 million
74.0mt
offloading cargo in the shortest time tons (mt) and automotive volumes increased by
frame possible is crucial – and that’s 8.9% to 672 536 units. Moreover, a concerted
where Transnet Port Terminals (TPT) focus by management resulted in significant
Break-bulk comes in. It plans and implements logistics operational efficiency improvements at the
8.9mt management solutions for the cargo that flows
through the country’s eight commercial ports.
This cargo is classified into four segments – dry
Durban Container Terminal, at the Port of
Saldanha Bay and in dry bulk handling at the
Port of Richards Bay.
AUTOMOTIVE bulk, break-bulk (multipurpose), automotive and TPT’s primary measure of container
672 536 container – and of these the container and dry efficiency is average moves per gross crane
UNITS bulk segments are by far the largest, accounting
for approximately 85% of volume revenue.
hour (GCH) and this increased by 8.1% from
24.6 GCH to 26.6 GCH in the current year.
Despite the current challenging global economic In addition, the average tons loaded per
conditions that have affected international hour at the Saldanha Bay iron ore terminal
trade, in the past two years TPT has continued has increased by 4.1% from 6 959 tons per
to grow volumes across all four segments. hour to 7 242 tons per hour. The Richards
The dry bulk segment comprises iron ore, Bay dry bulk terminal’s loading rate has
manganese, coal, magnetite, chrome and various increased by 2.7% from 660 tons per hour
other commodity exports. In addition, imports to 678 tons per hour.
of vital raw materials for industry are handled
through the dry bulk terminals. As such, TPT’s
dry bulk terminals play a vital role in the
economics of South Africa’s supply chain. EBITDA increased by
Customers include major mining houses and 1.1% to R2.2 billion.
multinational industries.
The large container segment serves a
This demonstrates how
multitude of clients and sees almost all of the productivity improvements
world’s major container shipping lines calling at
the container terminals at the ports of Durban,
positively impact the
Ngqura, Port Elizabeth and Cape Town. bottom line.
TPT also operates three RORO (ride on/
ride off) car terminals at the ports of Durban,
East London and Port Elizabeth. These provide Net operating expenses increased by 16.4% to
import/export handling services to both local R4.8 billion (from R4.2 billion in 2011). This was
and international automotive manufacturers. mainly due to a 23% increase in personnel costs,
Break-bulk cargo is handled at all the a 38.8% increase in energy costs, and a 23%
multipurpose terminals. Customers vary increase in material costs as a result of increased
Over the past 12 from emerging entrepreneurial businesses maintenance activity levels.
months, container to established large corporations. “As a consequence of these improvements,
WORDS: TONY STONE
volumes increased by
EBITDA increased by 1.1% to R2.2 billion.
7.2% to 4.3 million
TEUs, with a significant MEASURING PERFORMANCE This clearly demonstrates how productivity
increase in operational Over the past year, container volumes increased improvements positively impact the bottom
efficiency. by 7.2% to 4.3 million TEUs (twenty-foot line,” says Karl Socikwa, Chief Executive: TPT.
TRANSNET ISSUE 1 2012/2013 13PUMPED UP
The daily challenge for Transnet Pipelines is to keep
Gauteng – South Africa’s financial, industrial and
mining heartland – fuelled and running.
T
ransporting 16.7 billion litres of liquid when demand was at an absolute peak,” says
fuel and 494 million cubic metres of Saret Knoetze, Public Relations Manager: TPL.
gas hundreds of kilometres from the Regular inspection of the pipelines is also
coast to the interior is no easy task. paramount to ensure the safety of both
Road transport would be impractical communities and the environment. The clearly
and hugely costly. Transnet Pipelines (TPL) marked pipeline route is inspected by helicopter
provides South Africa with a low-cost solution. once a month to check that no soil erosion, flood
This Transnet operating division is responsible or other damage has effected either the pipeline
for bulk fuel and gas storage and long-distance covering or the servitude. Inspectors also ensure
pump and pipeline operations – mainly from that human settlements don’t encroach on to the
Durban and Mozambique to Gauteng and the servitude. “Happily, we won NOSA awards for
North West Province. It is the custodian of South safety in 2009, 2010, 2011 and are expecting to
Africa’s strategic gas and fuel pipelines – 3 000 win another award in the 2012 safety audit,” says
kilometres of high-pressure pipes that range Ellen Machanick, Executive Safety Officer: TPL.
from 150mm to 508mm in diameter and are
constructed in accordance with the American
Code ASME B31.4 standard. We have completed
The liquid products pumped through these one of the most
underground pipelines include gas, crude oil,
diesel, leaded and unleaded petrol and aviation
cutting-edge and
turbine fuels. TPL’s client list includes all major innovative infrastructure
international oil companies operating in South
investments in the world,
Africa, such as BP, Chevron, Engen, Sasol Oil,
Sasol Gas, Shell and Total, as well as local oil thereby fulfilling two major
companies, such as Vuyo Petroleum, and the commitments.
South African government.
Given that Johannesburg is 1 753m above sea
level, and it’s an uphill climb all the way from A major new development at TPL was the
the coast, keeping the fuel and gas pumping is a commissioning of a New Multi-Product Pipeline
challenge. Proper maintenance of pumps, pipes (NMPP) in January of 2012. As Brian Molefe,
TPL’s network extends and valves is vital. “Our greatest success in the Group Chief Executive: Transnet, said at the
thousands of kilometres,
past three years has been keeping Gauteng launch, “We have completed one of the most
transporting an
impressive 16.7 billion in fuel without any noticeable interruption of cutting-edge and innovative infrastructure
litres of fuel between the supply. This was particularly relevant over the investments in the world. Today we are fulfilling
coast and the interior. two-month period of the 2010 FIFA World Cup, two commitments. First, ensuring that the inland
14 TRANSNET ISSUE 1 2012/2013TRANSNET | PIPELINES
market demand for fuel is met, and secondly,
easing road congestion by reducing the number
of fuel tankers on our roads.”
The R23.4 billion, 555km, 600mm diameter
NMPP is to work in conjunction with the original
pipeline, built in 1965, until Terminal 1 at
Island View in Durban and Terminal 2 at
Jameson Park near Heidelberg are fully
completed in 2013, at which point the old
pipeline will be decommissioned.
While a combination of supply and demand
challenges resulted in volume performance
(as reported in Transnet’s Annual Report for
2012) being 7.1% below the previous year’s
figures, TPL did deliver 98% of all orders
placed on the pipeline system.
R23.4bn 555km
COST OF THE NEW
MULTI-PRODUCT LENGTH OF THE
PIPELINE (NMPP) NEW NMPP
3 000km
LENGTH OF TPL’S
GAS AND FUEL
494m
CUBIC METRES
PHOTOGRAPH: JACO WOLMARANS
PIPELINES OF GAS TRANSPORTED
BY TPL IN 2012
16.7bn
LITRES OF FUEL
TRANSPORTED
BY TPL IN 2012
TRANSNET ISSUE 1 2012/2013 15SUSTAINABLE
COMMUNITIES
16 TRANSNET ISSUE 1 2012/2013TRANSNET | FOUNDATION
Transnet’s Corporate Social Investment FIVE KEY PORTFOLIOS
The company’s vision for business success is
projects are building South Africa’s future – linked to a healthier, skilled and safer society.
and boosting the company’s triple bottom line. To support and drive this vision, the Transnet
Foundation invests in five crucial portfolios:
Education, Health, Sport, Arts and Culture, and
R
Container Assistance.
esponsible companies will sometimes Education is a particularly important focus
talk about their 3BL, or triple bottom area, given the well-documented skills shortage
line, meaning an investment in people, that exists in South Africa. In response to
planet and profits. At Transnet, those this, Transnet launched its Sharp Minds! Get
values are taken as a real measure of the Ahead In Life programme, which offers 450
company’s success – especially given Transnet’s learners from Grades 10 to 12 (senior high
role in developing South Africa’s society and school), spread across five provinces, special
economy. The company recognises that as a curriculum-based tutoring in Maths, Science,
state-owned company, it has to lead by example. Technology and English. The vision here is to
The company’s Corporate Social Investment prepare these learners to become productive
(CSI) unit is the Transnet Foundation and its members of their communities – and, where
responsibility is to implement socioeconomic possible, to become potential Transnet
developments on behalf of the company. employees further down the line.
Of course, CSI must be aligned with the The Sport portfolio saw Transnet initiating
company’s ethos and strategic imperatives the Rural and Farm Schools Programme in
– and that’s why the Transnet Foundation 100 schools in five provinces, along with the
has a core focus on delivering development, launch of the Transnet / South African Football
being transparent and incorporating various Association Soccer School of Excellence in
stakeholders in the communities in which the Johannesburg. Here, 120 promising young soccer
company operates. players join a football academy that develops
their sporting ability while providing a solid,
disciplined education.
The Containerised Infrastructure Assistance
The Phelophepa Health Train Programme allows Transnet to put its retired
is a shining example of healthcare freight stock to good use. Out-of-use freight
delivery, empowerment and containers – which are large, secure and
watertight – are converted into community
technology in a developing country. buildings and small offices in outlying rural
areas. You’ll find these repurposed containers
in remote villages all over the underdeveloped
parts of provinces such as Limpopo.
PHOTOGRAPHS: JACO WOLMARANS
TRANSNET ISSUE 1 2012/2013 17TRANSNET | FOUNDATION
At Transnet, CSI ALL ABOARD THE HEALTH TRAIN! doubled when a second Health Train was put
doesn’t start and end When it comes to Health, the Transnet onto South Africa’s rails.
with a signature in the
Foundation makes a massive impact in the lives
company chequebook
- it extends to a far of rural South Africans by bringing much-needed INVOLVING EMPLOYEES
greater cause among healthcare to communities. The Phelophepa At Transnet, CSI doesn’t start and end with
communities. Health Train, which runs for 36 weeks of every a signature in the company chequebook. The
year and reaches up to 280 000 rural patients, company recently launched a visionary Employee
carries a crew of 19 full-time staff and 37 Volunteer Programme (EVP), which allows
volunteer students. The train visits rural and its employees to lend a much-needed hand in
underdeveloped communities, bringing mobile the Transnet Foundation’s various community
healthcare to areas that don’t have adequate projects. It’s a strategic plan that takes the
healthcare infrastructure. abundance of skills – life skills, professional
The custom-built Health Train has been running skills and personal skills – in the Transnet
since 1994, earning great admiration along workforce and provides opportunities for
the way. Nobel Peace Prize-winner Archbishop employees to share those skills with people in
Emeritus Desmond Tutu has described it as the communities in which the company operates.
“a shining example of healthcare delivery, Projects range from painting or cleaning up a
empowerment and technology in a developing local school, to providing practical workshops
country”. In 2012, the Phelophepa fleet was and skills transfer with adult learners.
92% 15 000
NUMBER OF AMOUNT SPENT
PATIENTS WHO BY THE TRANSNET
REGISTERED FOR FOUNDATION ON CSI
NUMBER OF LEARNERS
THE PHELOPHEPA PROJECTS IN 2009/10
R89.4
REACHED BY THE
HEALTH TRAIN’S EYE THE PASS RATE OF THE 367 GRADE 12 FOUNDATION’S RURAL
CLINIC IN 2009 LEARNERS WHO SAT FOR THEIR NATIONAL FARMS AND SCHOOLS
20 869
FINAL EXAMINATIONS AFTER JOINING THE PROGRAMME IN 2009
MILLION FOUNDATION’S SHARP MINDS! GET
AHEAD IN LIFE PROGRAMME
18 TRANSNET ISSUE 1 2012/2013TRANSNET | MDS OVERVIEW
STRATEGIC
APPROACH
The Market Demand
Strategy is Transnet’s
R300 billion capital
investment programme,
which will see the expansion
of its rail, port and pipeline
infrastructure. Here’s how
it’s transforming South
Africa’s economy in terms
of increased growth, job
creation, productivity
and empowerment.
T
ransnet’s complex mandate balances demand through a strong investment focus and
commercial and developmental accelerated economic transformation, ultimately
objectives and requires prudent poising Transnet and the country for sustainable
planning and bold action in an growth. “Over the next seven years, we will invest
increasingly volatile economic R300 billion in expanding South Africa’s railways,
environment. The announcement of Transnet’s ports and pipelines,” says Brian Molefe, Group
Market Demand Strategy (MDS) by South Chief Executive: Transnet. “We will position South
African President, Jacob Zuma, in his State of Africa as a transshipment hub for sub-Saharan
the Nation address on 9 February 2012, placed Africa, cementing the country’s position as a
the company at the centre of government’s gateway to the African continent, which is one of
drive to boost future economic growth and job the world’s fastest growing economic regions.” The
creation through infrastructure development. economic stimulus will be further amplified by a
Through the MDS, Transnet will spend more developmental approach to procurement,
R300 billion over a seven-year period and will skills development and energy efficiency.
create up to 220 000 new job opportunities. Transnet will satisfy validated demand by
The MDS will see Transnet meet market accelerating investment in freight logistics
TRANSNET ISSUE 1 2012/2013 19TRANSNET | MDS OVERVIEW
capacity and support the reliable, efficient economy, the MDS will also significantly
and cost-effective movement of bulk and change Transnet,” Molefe explains. “Transnet
manufactured goods. This, in turn, will stimulate will have a strengthened financial position:
a significant increase in freight volumes and the MDS will see the company’s revenue grow
encourage a considerable modal shift from from R46 billion in 2011/12 to R128 billion in
road to rail, thereby reducing costs and carbon 2018/19, enabled by strong volume growth.”
emissions. This will increase Transnet’s energy The MDS will see Transnet spending
demand, providing an incentive to improve R205 billion on rail projects, with R151 billion
efficiency and explore innovation. invested in general freight business by 2019.
As a result, rail volumes are anticipated to
MDS OUTCOMES increase from 200 to 350 million tons during
The successful implementation of the MDS the seven-year period. Globally, the investment
will radically alter Transnet’s organisational will position the country as a key investment
make-up. With its headcount set to increase by hub on the continent. In practical terms, the
25% over the next seven years, the company investments made will lead to unparalleled
will become one of the largest employers in freight efficiency, and so reduce the transport
South Africa. Transnet will also become one costs of companies operating in South Africa.
of the top five global freight railways and one
of the top five companies in South Africa in
terms of revenue. “In helping to
shape and restructure our
The MDS will
see the company’s
revenue grow from
R46 billion in 2011/12
to R128 billion in 2018/19,
enabled by strong volume growth.
20 TRANSNET ISSUE 1 2012/2013TRANSNET | MDS OVERVIEW
KEEPING IT LOCAL Underpinning the MDS is a commitment
The MDS promotes localisation, to sustainability in everything Transnet
transformation and empowerment. does – to ensure the company creates
Transnet has developed localisation lasting economic, social and environmental
initiatives when dealing with future value for present and future generations. SEVEN-YEAR
international suppliers. These will include FORECAST
on-the-job training and apprenticeships in
international supply contracts, provision
of jobs and procurement opportunities to
CAPITAL
rural areas where facilities are located,
INVESTMENT
PROGRAMME OF
R300.1bn
and providing assistance to small business
to nurture innovation and create jobs.
Approximately R4.2 billion is expected to
be spent over the seven-year period on
small business promotion. Transformation R205.2bn
WILL BE ALLOCATED TO
initiatives include collaborating with RAIL PROJECTS AND
suppliers to meet the South African
government’s transformation and
R151.1bn
TO GENERAL FREIGHT
empowerment objectives.
EXPANSION OF
EXPORT COAL FROM
68.0mt to
97.5mt
EXPANSION
OF IRON ORE EXPORT
FROM
52.8mt to
82.5mt
GROWTH OF
CONTAINERS
HANDLED AT
TRANSNET
PORTS FROM
4.3 MILLION TEUs TO
7.6 MILLION TEUs
16%
ANTICIPATED REVENUE
GROWTH PER ANNUM
PHOTOGRAPHS: JACO WOLMARANS
OVER THE SEVEN-YEAR
PERIOD
R213.6bn
OF THE REQUIRED
FUNDING WILL BE
GENERATED FROM
OPERATING CASH FLOWS
TRANSNET ISSUE 1 2012/2013 21Growth path
The positive effects of Transnet’s MDS infrastructure
growth will be felt throughout South Africa and will
position the country as a world-class logistics hub.
A
2004 report by the World Bank economic and environmental sense: rail
shows that a country’s economy transport is less damaging to the country’s
improves – and income inequality roads; it produces lower carbon emissions;
declines – as infrastructure grows. and it reduces the costs of doing business.
Transnet is well aware of the Consequently, most of the capital investment –
positive effects of infrastructure development about R205 billion – will be allocated to general
and is mindful of its key role not only in South freight and freight rail, including developing the
Africa but in the greater Southern African Waterberg line in northern Limpopo. This will
region. As Stanlib economist Kevin Lings enable the Waterberg to become the country’s
noted in April: “[This] infrastructure … has the next coal hub once the Witbank reserves have
potential to help expand exports as well as been exhausted.
improve the efficiency of domestic business
activity.” Accordingly, investment in growth-
supporting infrastructure is key to Transnet’s
far-sighted and innovative MDS.
This infrastructure
What’s in the project line-up? has the potential to help
The areas targeted for infrastructural expand exports as well as
development are, broadly, rail freight, ports
and the New Multi-Product Pipeline (NMPP). improve the efficiency of
The goal is to create a complementary, domestic business activity.
integrated system of regional ports and rail
corridors to create a transshipment hub linking
southern Africa with the rest of the world.
An increase in capacity will result in greater
Where it’s happening: volumes of export coal, export iron ore and
rail freight export manganese. South Africa aims to be the
Transnet’s operations reflect a significant world’s largest manganese exporter and the
shift from road to rail. As such, the company fourth largest exporter of iron ore to China.
has made a huge investment (R150.8 billion) Coal exports will increase to 97.5mtpa, iron ore
About R205 billion of the in general freight business (GFB) to ensure exports to 82.5mtpa, and manganese exports
capital investment will rail capacity growth meets market demand will grow to 16mtpa in the next seven years.
be allocated to general
volumes, which are estimated to grow An increase in fleet (wagons) and improvement
freight and freight rail, in
line with Transnet’s road from 79.7 million tons per annum (mtpa) to to infrastructure is essential in facilitating the
to rail campaign. 170.2mtpa by 2019. This move makes good upsurge of these supplies.
22 transnet issue 1 2012/2013TRANSNET | INFRASTRUCTURE PLAN
PHOTOGRAPHS: JACO WOLMARANS
TRANSNET ISSUE 1 2012/2013 23TRANSNET | INFRASTRUCTURE PLAN
PORTS with current expansion projects sufficient to
Transnet will spend R151 billion upgrading meet demand until approximately 2026.
South Africa’s old ports and creating new ones. Saldanha Bay: A Multi Purpose Terminal will
Capacity will be expanded to cover a total be developed to facilitate exports of globally
landside area of 9 218 hectares, reflecting sought-after commodities from the Northern
growth of 70%. The total quayside length will Cape interior.
become 92 kilometres – up by a massive 170%.
Richards Bay and Maputo: A proposed link to the NMMP
Swaziland rail network will provide additional A 712km New Multi-Product Pipeline (NMMP)
capacity for general freight exports to Richards between Gauteng and Durban, doubling carrying
Bay and Maputo. The ‘Maputo corridor’ will capacity of refined petroleum products, at a
connect Gauteng, Limpopo and Mpumalanga cost of R11 billion, will boost the efficacy of the
with the Mozambican capital. vital North-South corridor. Increasing demand
Durban: This busy port, which connects demand- for fuel in Gauteng necessitated a new pipeline
heavy Gauteng with the coast, handles two-thirds between Durban and South Africa’s economic
of all South African port traffic. Berths at the hub. Transnet has invested 7.5 billion in the
existing port will be deepened and widened, while pipeline, which, when complete, will be able to
a brand-new “dig-out” port will be created at the transport petrol, diesel, jet fuel and gas from
former Durban airport site in order to meet an the Port of Durban to a terminal in Heidelberg
anticipated six-fold increase in container traffic. at a phenomenal speed. “We are now able to
Port Elizabeth and Ngqura: The ports at Port concurrently run the Durban to Johannesburg
Elizabeth and Ngqura service the Eastern Cape pipeline and the NMPP with petroleum products
hinterland and act as a secondary gateway to at some three million litres per hour,” says Brian
Gauteng. Ngqura is also well located to optimise Molefe, Group Chief Executive: Transnet.
maritime transshipment traffic between the east
and west coasts of the continent. Two new berths THE FUTURE LOOKS BRIGHT!
and a proposed new outer basin will help meet Growth in infrastructure – and its efficiency and
increased demand at Ngqura. productivity benefits – will continue well beyond
Cape Town: Cape Town container demand is 2019. Informal projections currently being made
expected to quadruple over the next 30 years, extend as far as 2041.
GENERAL IRON ORE MARITIME
FREIGHT FREIGHT CONTAINERS COAL FREIGHT
UP BY 90mt UP BY 30mt UP BY 3 300 TEUs UP BY 30mt
113% 57% 76% 44%
24 TRANSNET ISSUE 1 2012/2013TRANSNET | INVESTMENT FOCUS
SOUND INVESTMENT
Transnet will continue to invest significant
resources in recruitment, development, deployment
and retention of key operational, technical and
managerial skills to facilitate growth.
B
ased on Transnet’s commercial MDS: MAJOR AREAS OF CAPITAL INVESTMENT AND CAPACITY CREATION
needs and South Africa’s broad
Area of Existing Capacity Future Utilisation
macroeconomic and development
investment capacity created over capacity 2019
objectives, the MDS has been 7 years
subdivided into eight focus areas:
TFR Coal Line 68.0 mtpa 29.5 mtpa 97.5 mtpa 100%
Optimising capital investments and growing
R31.6bn
the asset base.
Growing volumes and market share. TFR Ore Line 52.8 mtpa 29.7 mtpa 82.5 mtpa 100%
Improving operational efficiencies. R18.6bn
Securing funding and ensuring continued TFR 79.7 mtpa 90.5 mtpa 170.2 mtpa 100%
financial strength. General Freight
Prioritising SHEQ, sustainability and risk. R150.8bn
Meeting complementary objectives through Maritime Terminals: Terminals: Terminals: Terminals:
job creation and skills development. Containers* 5.0m TEUs 4.3m TEUs 9.3m TEUs 79%
Creating regulatory certainty. R24.1bn Ports: Ports: Ports: Ports:
Promoting strategic enablers, governance 5.5m TEUs 4.0m TEUs 9.4m TEUs 79%
and creating a high performance culture. Bulk Terminals: Terminals: Terminals: Terminals:
The company will grow rail volumes in key R31.6bn 79.5 mtpa 44.3 mtpa 123.8 mtpa 99%
general freight business and export lines, ensure Ports: Ports: Ports: Ports:
security of fuel supply, increase market share by 196.0 mtpa 36.0 mtpa 232.0 mtpa 95%
addressing the demand of domestic producers Break-bulk Terminals: Mainly Terminals: Terminals:
for rail services, allocate capacity to emerging R4.0bn 15 mtpa sustaining 15 mtpa 80%
miners and focus on integrating commercial Ports: Ports: Ports:
services across the operating divisions to offer 29 mtpa 29 mtpa 52%
a seamless customer service.
NMPP 4.0 billion 4.4 billion 8.4 billion 92%
R7.5bn litres pa litres pa litres pa
* TNPA’s container capacity emanating from Multi-purpose Terminal
and Maydon Wharf is shown under break-bulk
PHOTOGRAPHS: JACO WOLMARANS
TRANSNET ISSUE 1 2012/2013 25WINNING TEAM
Transnet aims to partner a
strong base of suppliers to boost
economic transformation while
meeting its customers’ needs.
26 TRANSNET ISSUE 1 2012/2013transnet | supplier development
T
he optimal management of suppliers
R2.9bn
of goods and services is of great
importance within the MDS. The
plan aims to widen and strengthen has already
Transnet’s supplier base to achieve been spent by
efficient, cost-effective procurement that international
accords with the government’s economic suppliers on
development objectives – which include skills local content
development, job creation and Broad-Based
52%
Black Economic Empowerment (B-BBEE).
In line with its Competitive Supplier
Development Programme (CSDP), Transnet also of content for
aims to encourage localisation of the supply locomotives
chain by encouraging direct investment from will be local
international suppliers into local businesses, by 2019
and assisting their efficiency so that they can
R4.2bn
reliably provide quality goods and services –
both to Transnet and to export markets.
is earmarked
Building supplier relationships to promote
Transnet began implementing local supplier small business
development programmes in 2008. The purpose
of the current programme, the CSDP, is to
localise “the manufacturing of equipment,
focusing on skills development, job creation and
preservation,” says Mboniso Sigonyela, General Making a contribution
Manager: Corporate and Public Affairs, Transnet. Under the CSDP, suppliers will be expected to:
The CSDP will boost suppliers either Ensure uninterrupted supply.
directly, through procurement, or indirectly, by Help reduce operating costs.
supporting downstream suppliers. The scope Reduce reliance on imported products.
for suppliers will vary depending on the level Create and preserve jobs.
of commodity type. Transnet will look for key Promote small business development.
outcomes and targets in evaluating tenders Enhance local skills and intellectual property.
from the various categories of potential Help Transnet become competitive in the
suppliers, and will measure winning bidders’ international market.
delivery to targets.
Going local
Keeping the customer satisfied Almost R3 billion has already been spent on
Transnet’s major domestic customers represent local content by international suppliers.
a broad spectrum of the economy, including International suppliers will transfer knowledge
and expertise to local suppliers.
shipping, mining, vehicle manufacturers,
International suppliers will provide
PHOTOGRAPHs: Jaco Wolmarans
agriculture, timber and forest products,
apprenticeships and on-the-job training.
fuel companies and exporters of commodities.
Transnet’s customers Through the CSDP and wider MDS, Transnet Jobs and procurement opportunities will be
and suppliers extend
across a broad range of
plans to boost growth and improve productivity created in rural areas.
industries, companies – thus satisfying its customers’ needs and Collaboration with suppliers will help meet
and commodities. positioning South Africa as a destination of the government’s transformation and
choice for global investors. empowerment objectives.
transnet issue 1 2012/2013 27PEOPLE POWER
The MDS promises a jobs and skills bonanza
in the all-important realm of human capital.
A
reliable indicator of the
effectiveness of any economic
strategy is its effect on the
workforce. Employment in
TEACHING SKILLS
South Africa has long been
Core to the MDS will be
recognised as a key political and economic
an ongoing skills training
consideration, and, like elsewhere in the world,
programme to harness and
its successful management and growth can maximise South Africa’s talent,
help transform the economy from competent improve efficiency and enhance
to outstanding. One of the key focus areas productivity. “In order for the economy and
of the MDS is employment and the plan aims businesses to grow, we need to address the
not only to create more jobs, but also to skills required both for current and future
build skills in order to meet the government’s operations,” says Dr Matthews Phale, Senior
transformation and empowerment objectives. Manager: Group Capacity Building, Transnet.
Adds Karl Socikwa, Chief Executive: Transnet
CREATING JOBS Port Terminals, “We have to ensure that, as we
“State-owned companies and major businesses create sustainable jobs through this level of
have a responsibility to step forward, invest investment … we develop our people to be able
and create jobs,” says Brian Molefe, Group to operate the infrastructure.”
Chief Executive: Transnet. By 2018/19, the Resources will be allocated to the training of
MDS is expected to have added 588 000 jobs artisans, engineers and engineering technicians.
to the South African economy, including 15 000 “Our commitment is to train more people than we
direct jobs within Transnet. All nine provinces need through our specialised schools of rail, ports
will benefit from the job-creation drive, but and pipelines,” says Mboniso Sigonyela, General
Manager: Corporate and Public Affairs, Transnet.
most of the new employment opportunities
The company’s significant investment in human
will be in KwaZulu-Natal, the Western Cape and
capital “means we’ll train people beyond our skills
the Eastern Cape.
28 TRANSNET ISSUE 1 2012/2013You can also read
