Transnet’s corridor model and segment strategy supports the development
of economic growth and activities nationally and in the region. In exploiting
its core in the different operating divisions in the Group, Private Sector
Participation ‘PSP’ has been identified as key to accelerate growth
opportunities in the business and the country. In keeping with this and under
the leadership of the Chief Executive of Transnet Freight Rail, an adjusted
approach to Branch Lines PSP’s was presented to TFR and Group Exco and approval
obtained to proceed and accelerate these PSP opportunities.
Branch Lines are largely situated in rural and agricultural areas
of our country and requires resuscitation and renewal. The corridor model,
headed by Managing Executives, have these Branch Lines situated within their
areas of control and hence, an integrated approach to the adjusted model being
pursued.
Branch Lines are important feeders into the core business and includes
key objectives such as the migration from road to rail, promotion of intermodal
solutions, the application of new technologies for efficiency, productivity,
ease of operations such as the use of swop bodies, terminal handling equipment
and revolutionary road to rail interventions that can advance the roll-out of these
PSP opportunities in the market.
The age and heritage nature of the railways and specifically the Branch
Lines, including real estate and facilities, lends itself well to the promotion
of freight on rail, creation of passenger tourism opportunities with a focus on
rail-based tourism train operations. Preservation and expansion of a rail
heritage legacy in continuing with steam trains, will unlock new and additional
downstream jobs and job opportunities in the food, wine, agriculture markets
and other economic activities.
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The Red Devil Locomotive of Transnet. A renowned heritage asset. |
The Grahamstown Railway Station. (Source: Heritage Portal)
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Umgeni Steam Railway (Source: Google)
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The main freight on rail strategy
seeks to aggressively promote private sector participation opportunities,
continuation of the revitalisation of branch lines, creating and upgrading
capacity in areas that will contribute to socio-economic and local development.
The creation of employment opportunities in the areas of production for cartage
services that are fully integrated into the rail and port terminal systems as
well as the development of downstream industries within this environment.
The partnerships that Transnet
will contribute to in the market with the private and public sectors must
innovate to contribute to growth in volumes on rail, increased densification on
the branch and main lines, reducing the cost of doing business and injecting a
fresh breeze into the broader industry.
Governance,
approval and modus operandi with Branch Lines:
·
TFR
obtained approval from Group Exco that the CE is authorised to take the various
opportunities to market.
·
The
CE approved memoranda and under the auspices of TFR Supply Chain Services and
governance and in conjunction with the Branch Lines team members, tenders are
prepared and advertised in the market to attract private sector participation.
· Tender
packs are prepared following SCS templates and governance to advertise in the
National Treasury e-portal for tenders and Transnet tender portal.
· The
first six opportunities are out in the market for the 2021-2022 financial year
and the rest will be rolled out across subsequent financial years.
Ceres Rail revival (source: Google)
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Franschhoek Wine Tram (source:Google)
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Transnet Museum – George (source: Google)
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