MATERIALS HANDLING & LOGISTICS
RAIL INDUSTRY SHAKE-UP Transnet looks to improve efficiencies By Nelendhre Moodley
P
resident Cyril Ramaphosa recently promised an overhaul of the rail sector with the introduction of new entrants. Is state-owned entity Transnet ready for some competition? “In the South African Economic Reconstruction and Recovery Plan, the president indicated that there is going to be an increase in the number of public players in our system. We are getting ready for whatever competition might present itself,” Transnet Group CE Portia Derby told delegates attending the ENSafrica virtual event. In readying itself for new competition and to grow the business, the entity recently identified strategies to ensure a more efficient and streamlined business – this included relocating its executive team. “Transnet Freight Rail (TFR) executives are no longer headquartered in Johannesburg, but relocated across the operations to ensure improved decision making. There is now a greater delegation of authority appointed to all the individuals,” said Derby.
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SA MINING
MARCH / APRIL 2021
TFR’S STRATEGY FOR COMMODITIES
The commodities sector is an important one for Transnet, accounting for “about 80% of Transnet’s revenue mix”. The key contributing sectors are automotive (2%), mineral mining and chrome (9%), fuel and chemicals (9%), manganese (11%), export iron ore (11%), export coal (20%) and containers (17%). Given the importance of commodities
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to Transnet Freight Rail, the entity, which is working to ensure that it moves product as efficiently as possible, will invest substantially in rail networks over the next few years. “If we fix the networks we will be close to using the current installed capacity of around 250mtpa in the system,” said Derby. Speaking of the improvements being
