Delivering efficient, safe and reliable services to South Africa, Transnet is both the largest and most crucial aspect of the freight logistics chain, ensuring the safe passage of thousands of tons of delivered daily to each and every one of the country’s citizens.
Transnet operates an integrated freight transport company, one which is formed around a core of five operating divisions all working in tandem with one another. Every day Transnet delivers thousands of tons of goods around South Africa, through its pipelines and both to and from its ports. That cargo is then moved on to ships for export while it unloads goods from overseas. The central mission driving the company forward is to cement its position as a focused freight transport company, delivering integrated services which continue to be efficient, safe, reliable and cost-effective, which will go on to promote economic growth in South Africa. This will be achieved through an increased in the market share it possesses, an improvement in productivity and profitability and by providing sufficient capacity to its customers ahead of demand.
While Transnet is fully owned by the South African government, it still operates as a corporate entity which aims to both support, and contribute to, the country’s freight logistics network. Transnet is continually looking to develop South African industry, and reduce the cost of doing business in the country, while at the same time operating efficiently and profitably. The newly restructured Transnet is made up five central operating divisions, among them Transnet freight rail, formerly known as Spoornet. This is the largest division of all those constituting Transnet as a whole, specialising in the transportation of freight with approximately 25 000 employees spread throughout the country. It maintains an extensive rail network across South Africa with connections to other rail networks in the sub-Saharan region, a rail infrastructure representing about 80% of Africa’s total. Transnet freight rail has succeeded in positioning itself to become a profitable and sustainable freight railway business, assisting in driving the competitiveness of the South African economy and perfectly placed to dramatically alter the country’s rail industry.
With its origins dating back more than a century, Transnet rail engineering forms the backbone of South Africa’s railway industry, boasting eight product-focused businesses, 150 depots, seven factories and 15,000 employees across the country. This engineering organization has actively supported railways in the expansion of the country’s economy, over the decades developing some of the most innovative bogies and wagons ever designed for 1067mm track. Today, it is dedicated to the in-service maintenance, repair, upgrade, conversion and manufacture of freight wagons, mainline and suburban coaches, as well as diesel and electric locomotives, wheels, rotating machines, rolling stock equipment and services. The proximity of the coastal plants to major ports also renders far easier the movement of products to and from overseas markets, which will facilitate its ever-expanding range of rolling stock products and a burgeoning list of satisfied customers, as well as serving to enhance the organisation’s international reputation.
Transnet national ports authority, meanwhile, manages the national port system in a landlord capacity to ensure its safe, effective and efficient economic functioning. It provides port infrastructure and marine services at the eight commercial seaports in South Adfrica, those at Richards Bay, Durban, East London, Ngqura, Port Elizabeth, Mossel Bay, Cape Town and Saldanha. It has the core functions of maintaining and improving port infrastructure, managing port activities and assisting in the manoeuvring of vessels within port limits and along the coast. Due to the ever-evolving nature of the maritime industry, the National Ports Authority seeks to continue to enhance its role in facilitating trade, influencing growth through the provision of port infrastructure capacity and aligning itself and its core activities to shifting dynamics in the market. TNPA also looks to enhance the ports’ geographical positioning as a leading gateway for trade coming from both the eastern and western seaboards.
Established in 2000, Transnet port terminals came about through Transnet’s splitting of its single port division, Portnet, into operations and landlord businesses. Since its inception, Transnet port terminals has played a key role in supporting the South African government’s export-led growth strategy. Most Southern African import and export commodities are handled through the country’s seven logistics ports. The division deals with the container sector, alongside mineral bulk, agricultural bulk & Roro sectors. Transnet Port Terminal’s major customers represent a broad spectrum of the economy and among them it numbers players from the shipping industry, vehicle manufacturers, agriculture, timber and forest products, the mining industry and exporters of minerals, metals and granite. The South African Government has embarked on a massive infrastructure drive geared toward boosting the economy, while alleviating poverty. The ports are seen as key to this plan to facilitate for economic growth, and as part of the Transnet Market Demand Strategy, TPT will receive R33billion to create new capacity for terminals to meet projected demand.
Formerly known as Petronet, Transnet pipelines, formerly known as Petronet, is currently servicing two key industries in fuel and gas by transporting these products over varying distances. Transnet pipelines’ network currently transports 100% of South Africa’s bulk petroleum products.The business, established in 1965, is also widely regarded as integral to the well-being of the South African economy. It is equipped to handle an annual average throughput of some 16 billion litres of liquid fuel, alongside more than 450 million cubic metres of gases. These liquid products include among them crude oil, diesel, leaded and unleaded petrol and evrn aviation turbine fuels. The liquid fuels network crosses a vast area, encompassing the provinces of KwaZulu-Natal, Free State, Gauteng, North West and Mpumalanga. The intake stations are its two Durban refineries, the crude refinery at Coalbrook and the Sasol 2 and Sasol 3 synfuel plants at Secunda. The network includes a tank farm at Tarlton with a capacity of 30 million litres, used mainly for the storage and distribution of liquid fuels into Botswana. Transnet pipelines’ customers are all South Africa’s major fuel companies, ranging from BP, Caltex, Engen, Exel, Sasol Oil to Sasol Gas, Tepco, Shell and Total.
The final of the five core divisions of operations is Transnet National Ports Authority, recently the subject of a major development at one of the country’s most scenic ports. Against its backdrop of Table Mountain, TNPA awarded V&A Waterfront (Pty) Ltd the development of a cruise terminal at the Port of Cape Town. This will entail significant investment of R179m to finance, design, and develop the terminal, as well as the ensuing operation, maintenance and transfer of ownership of the facility back to TNPA after a period of 20 years. Once completed, it will be able to accommodate the port’s current and future passenger vessel fleet, while t is also expected that the upgraded facility will offer value-added retail and hospitality services. The award is also in line with Transnet’s commitment to promoting private sector participation as a key element of the company’s Market Demand Strategy, while at the same time playing a significant role in enhancing tourism and job creation in the Western Cape.
TNPA Chief Executive, Richard Vallihu, was clear in the value that this develop will bring to the port: “The upgraded Cape Town cruise terminal facility to be developed by V&A Waterfront will be a gateway to a unique African experience in cruise tourism. Transnet is excited about playing a role in entrenching Cape Town as a leading destination in Africa and the world. The city will benefit from a world-class facility that will attract greater international cruise liner calls, create jobs and strengthen the tourism offering of not only the Mother City, but South Africa as a whole,” he stated.
June also saw Transnet conclude a R30 billion loan facility agreement with China Development Bank, to fund the hundreds of locomotives the company is building with China South Rail and China North Rail. As its build programme gathers momentum, the proceeds of the loan will be used to finance the company’s 232 diesel and 359 electric locomotives it plans to construct, with CNR and CSR respectively. It is a significant milestone in Transnet’s funding strategy, representing 60% of a required investment of more than R50 billion for the programme, where Transnet plans to acquire 1064 additional engines. The acquisition of the 1064 locomotives is at the heart of Transnet’s Market Demand Strategy, aimed at increasing volumes while simultaneously bringing down the average age of the company’s current locomotive fleet. The programme is designed to aid Transnet’s plans to grow volumes, from a current tonnage of 210-million to over 350-million tons in just seven years. The company will spend more than R337 billion in this period on revamping its rail, ports and pipelines infrastructure, with the majority of its infrastructure spend, some R210 billion, to be dedicated to rail developments.