Our Seven year strategy
In 2012, President Jacob Zuma, President of South Africa announced in his State of the Nation Address that Transnet would invest more than R300 billion in infrastructure development to rejuvenate the economy, create jobs and address poverty and inequalities.
Of this amount, R200 billion will be channelled to Transnet Freight Rail to expand its rail infrastructure to create capacity and increase cargo volumes. Through investment, Transnet Freight Rail will be able to optimise its capital portfolio, build a world class capital execution function and leverage capital procurement and localisation. In accordance with the strategy, the company has committed itself to railing more than 350.3 million tons of cargo a year by 2018 / 2019, the financial year when the MDS will reach its maturity.
Transnet Freight Rail has developed and is implementing a major new strategy which is part of the Transnet’s greater “Market Demand Strategy’’ (MDS). The key element of this strategy is a shift of traffic from road to rail. Rail friendly traffic may be defined as freight that typically includes heavy minerals and mining commodities being conveyed over long distances (Coal, Manganese, Iron Ore, Magnetite, Chrome and Rock phosphate) but also includes agricultural products and containerised commodities and goods.