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​Strategy Pillars

            

​Our Strategy Pillars

The Transnet Freight Rail’s business plan aims to narrow the gap between what customers demand in terms of freight to be transported and what the rail system has the capacity to provide.

This strategy involves a significant focus on operational efficiency improvement coupled with capital investment. Transnet Freight Rail has implemented six core strategies (each with a host of initiatives) to ensure that we close the gap between demand and supply. The key strategies that has been implemented to pursue the MDS are outlined below:

Operational Planning and Efficiency

Transnet Freight Rail operates using a scheduled railway philosophy. This encompasses operating trains in accordance with an Integrated Train Plan (ITP) that is appropriately resourced to optimise capacity through careful deployment of assets to extract efficiencies. The aim is to significantly improve operational efficiency and customer service delivery. The principle of extraction operational efficiencies towards globally accepted benchmarks has been embedded in all operations practices using the Lean Six Sigma philosophy aimed at continuous improvement, value extraction and operational excellence.

Market Development

Freight Rail will grow volumes to 350 mtpa and increase rail market share from 23% to 30% (Freight Rail share of total South Africa tons moved by 2018/19, primarily by increasing volumes in the mining industry through expansion programmes and through capacity creation for junior miners. Freight Rail will develop markets and product offerings, develop logistics and transport solutions and, where appropriate, partner with road hauliers and logistics service providers to improve the value proposition and service offering to customers.

 

Intense Innovative Investments

mdsThe MDS injects an aggressive R201 billion capital investment programme in rail over the next seven years. Together with significant productivity and efficiency improvements, this supports Freight Rail’s thrust for market share growth through volume increases infrastructure development and increased rolling stock. This will standardise the network, simplify operations and improve safety performance. Private Sector Participation (PSP) where deemed appropriate will be sought to broaden investment capability, particularly investment in rail handling equipment and facilities and inland consolidation terminals. Capital expenditure will, as far as possible, be localised in support of the CSDP and growing local industries.

 

Inspirational Leadership and Employee Development

In order to deliver superior service to our customers, whom we wish to cultivate loyalty towards the rail product, it is important for Freight Rail to create a cadre of well trained and motivated employees, imbued with execution edge based values, to enable the company to deliver on its promises. Freight Rail will embark on a holistic employee centred programme over the next seven years that will assist it to attract and retain the best talent and make Freight Rail an employer of choice by adapting organisational health and performance as the centre of our human resources strategy. We will also develop inspirational leaders who will guide that execution of the MDS.

 

Driving Accountability - Organisational Model Redesign

Labour, Regulatory & Security As part of the strategy for driving accountability, Freight Rail will adopt a redesigned organisational model that seeks to create accountability within customer-facing business units for managing assets to continuously improve utilisation, efficiency and customer service. Business units will also focus on cost drivers with the aim of improving competitiveness. The revised business model has been implemented at the start of the 2012/2013 financial year. Six business units have been defined on the basis of the existing customer segmentation. The business units has no pricing authority – this is coordinated centrally to ensure a continuation of fair and defendable pricing to all Freight Rail customers. Planning and monitoring as well as rolling stock fleet management will be included in the central operations structure with business units making recommendations for expansion programmes with final decisions being coordinated through the structure that promotes strategic alignment and corporate direction. The infrastructure will continue to be managed and maintained by the rail network function. The divisional head office will render shared support to the rest of Freight Rail. Strategic business units focuses on niche segment, while working as an integrated part of a vertically integrated railway.

Safety, Risk and Environment

Improved operational and workplace safety performance is considered critical to the successful implementation of the Market Demand Strategy. The safety strategy adopts an approach of systemic safety. This implies that all elements of railway production –railway staff, infrastructure and rolling stock – are interdependent and impact on each other. The deployment of technology will serve to enhance railway safety systems and processes through the continuous development of people, skills and tools.

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Did you Know?

TFR moved 201 Million Tons in 2011/2012 financial year”

TFR has put in place a 7 year Market Demand Strategy plan which expected to place TFR in the Top 5 Rail Operators bracket worldwide by the year 2019”

TFR operates more than 1444 trains per day”

TFR currently operates under the scheduled railway system which focuses on trains departing and reaching their destinations on time”

“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.
Call us on 0860 690 730