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​​How MDS affects you


How MDS affects you

mdsThrough the seven year Market Demand Strategy Transnet believes that it will address the socio-economic objectives as set out in the New Growth Plan.

As the Strategy which is borne of a number of strategic drivers, MDS’s intent is to make a significant contribution to national objectives embedded in the New Growth Path (NGP) and the National Development plan(NDP)- to create capacity, to enable an export – led growth strategy, to develop infrastructure and to create jobs and develop skills.

To address the legacy structural imbalances in the freight transport system, significant tonnages of freight are conveyed by road rather than rail which contributes to high logistics costs (comprises country competitiveness) and to the cost of externalities. Greater tonnages of traffic being transported by rail would make a significant contribution to reducing the number of heavy trucks on roads; overall transport and logistics costs; cost of externalities such as road damage, road accidents, road congestion, noise pollution, carbon emissions and the impact of rising fuel prices.

How will MDS benefit South Africa?

  • Improved infrastructure can lower supply-chain costs of business in South Africa
  • Upgrades and expansion will improve efficiency
  • The switch from Road transport to Rail will reduce costs and carbon emissions of transport and doing business in the region
  • We will address capacity constraints in many sectors of the economy –most significantly in the mining sector.
  • Addressing underdeveloped freight system will enable S.A to be competitive
  • Foreign investors are keen to invest in the programme
  • Our overall infrastructure development programme will reduce the overall costs of doing business in South Africa

"Success ultimately depends on broader South African partnership and support which will see South African citizens reaping benefits."

MDS success depends on these factors:

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Did you Know?

“Transnet Freight Rail is the largest operating division of Transnet Limited”

"Transnet Freight Rail has over 38 000 employees, who are spread throughout the country"

"TFR aims to become one of the top five best railways in the world by 2019"

“In line with our Market Demand Strategy objective of knowing the customer experience to increase satisfaction, we are now responding to your business queries through our one stop Customer Interaction Center.
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Government departments:
Greater collaboration thereby creating and enabling environment for successful execution of MDS
Increase in labour productivity to deliver on volume growth and MDS targets.
continued support and access to the cost effective funding to meet requirements.
Key customers
Alignment and collaboration on growth and expansion plans and conversion on take-or-pay contracts.
Partner with Transnet to deliver capital spends and achieve localisation as well empowerment objectives.
Labour Unions:
Labour stability to support execution and competitiveness of SA freight logistic system.
Alignment on Tariff methodology.