OUR PLAN - Transnet

your guide to the

Our Market 

Demand 

Strategy will 

have a significant 

bearing on how 

we do business in 

the rest of Africa. 

BRIAN MOLEFE 

Group Chief 

Executive 

contents02 What 

is the 

mds 

04 Our plan 

06 How will we 

achieve this 

08 Why do we 

need the mds 

10 Human 

resources 

12 breakdown of 

the investment 

14 Transnet 

Freight Rail 

18 Transnet Rail 

Engineering 


National Ports 

Authority 


Port Terminals 


Pipelines 

34 What is the 

Transnet 

Foundation 

38 Sustainability 

40 Promoting a 

safe culture 

42 How will 

the mds benefit 

South Africa 

44 What the MDS 

means for 

South Africa 

48 Did you 

know that... 

published by 

Dear colleagues, 

Welcome to our Market Demand Strategy (MDS) guide. 

The MDS is a revolutionary transition in the life of Transnet. It marks a definitive 

move to demonstrate the role that state-owned enterprises should play in the 

development of our economy. In helping to restructure our economy, the MDS 

will also significantly change Transnet. We are poised to become one of the 

world’s largest freight logistics groups and freight hubs. 

This guide is a roadmap to the MDS. It provides a concise summation of our 

targets and how we intend to achieve them. Most importantly, it should serve as 

a daily reminder of why we all come to work at Transnet. 

In order to deliver on our promises and help grow the South African economy 

and contribute to a better life for our fellow citizens, we must double our efforts 

to make Transnet a people-centred, performance-driven, customer-focused 

organisation. We must make working for Transnet a calling – one to which we 

must all listen. 

In order for our plans to succeed, we require equally profound changes in 

ourselves, changes in how we think and operate. We must all make this journey 

together and I hope that you are as excited about these changes as I am. 

I therefore call on all of us to embrace the changes and work together to make 

our company and country a better place for us all. 

Brian Molefe 

Group Chief Executive 

Brian Molefe 

Group Chief Executive 

follow us on: 

www.twitter.com/follow_transnet • www.facebook.com/Transnet.SOC.Ltd 

transnet 1

WHAT IS THE 

M DS 

1Transnet’s Market Demand Strategy (MDS), will expand 

2The main pillar of the MDS is the R300bn investment 

programme. 

3 

and modernise the country’s ports, rail and pipelines 

infrastructure over a period of seven years to 

promote economic growth in South Africa. 

The MDS will make Transnet one of the biggest 

rail freight companies in the the world. 

4 

Rail volumes will increase from around 200 million tons 

to 350 million tons. 

R7.7bn 

THE AMOUNT WE 

WILL SPEND 

ON TRAINING, SKILLS 

DEVELOPMENT, 

BURSARIES AND 

GRANTS BY 2018/19 

288 000 

The total number 

of jobs we will 

create within the 

South African 

economy 

25 % 

The headcount 

increase over the 

next seven years 

Transnet plays a 

pivotal role in supporting 

government’s drive 

for infrastructureinvestment-led 

economic 

growth. The MDS will 

enable us to transport 

goods in a reliable, 

efficient and 

cost-effective fashion. 

16% 

The percentage 

of revenue growth 

we expect per 

annum over the 

next seven years 

71.2% 

The percentage 

by which we will 

grow container 

capacity by 

2019 

A switch from road to rail will reduce 

costs, congestion and carbon emissions. 

TRANSNET 3

OUR PLAN 

1 

6 78 

910 

2 

Address capacity constraints. 

Improve the performance of 

4 

3 

the regional rail system. 

Switch from road to rail transport. 

5 

Decrease congestion on 

the country’s roads. 

Promote skills development. 

Improve global and regional 

maritime connectivity. 

Develop supplier industries 

for all modes of transport. 

Provide world-class infrastructure 

and technology. 

Create an infrastructure that 

meets the demands of the growing 

economy. 

Improve the competitiveness 

of the nation’s freight system. 

TRANSNET 5

HOW WILL 

WE ACHIEVE 

THIS 

We will increase 

our ability to 

measure and 

track costs from 

internal 

and external 

activities. 


WITHIN 

TRANSNET 

We will focus on enhanced 

measurement and 

reporting, more frequent 

performance reviews, 

enhanced risk management 

and capital allocation 

processes, and the 

alignment of incentives 

across the organisation. 

1 

4 

SIX PILLARS 

OF THE 

IMPLEMENTATION 

PLAN 

CAPITAL 

PLANNING AND 

EXECUTION 

We will increase capacity 

and capability to deliver 

on the R300-billion 

capital plan. 

FINANCE 

AND 

FUNDING 

We will build funder 

confidence and expand 

funding options. 

2 

VOLUMES AND 

CUSTOMER 

SATISFACTION 

We will increase customer 

confidence to secure 

future volumes. 

3 

5 6 

REGULATORY 

AND KEY 

STAKEHOLDER 

ENGAGEMENT 

We will manage the 

regulatory environment 

to achieve policy and 

regulatory certainty. 

OPERATIONAL 

EFFICIENCY 

AND 

PRODUCTIVITY 

We will operate more 

efficiently and reliably. 

SAFETY, 

RISK AND 

SUSTAINABILITY 

We will prioritise safety, 

energy efficiency and 

energy security. 

TRANSNET 7

WHY DO 

WE NEED THE 

FACTS 

& FIGURES 

MDS 

The successful 

implementation 

of the MDS will 

position Transnet as 

a top-tier logistics 

and transport 

provider. 

BRIAN MOLEFE 

GROUP CHIEF 

EXECUTIVE 

INVESTMENT in infrastructure and growth of the economy are 

central to the South African government’s New Growth Path. 

By expanding our rail, ports and pipelines infrastructure, and 

facilitating the shift from road to rail transport, the MDS will have a 

marked impact on the cost of doing business in South Africa. 

JOBS 

The MDS investment 

programme will create 

and sustain hundreds of 

thousands of direct and 

indirect jobs, every year 

for the next seven years. 

SKILLS 

DEVELOPMENT 

We will prioritise 

skills development to 

promote a high 

performance culture. 

COMPANY 

GROWTH 

We will increase our 

headcount by 25% over 

the seven-year period 

to support the growth 

of the business. 

SUSTAINABLE 

VALUE 

The MDS will deliver 

lasting economic, social 

and environmental 

value to South Africa. 

SEVEN YEARS 

THE PERIOD IN WHICH AN ANTICIPATED REVENUE 

GROWTH OF R82 BILLION WILL BE REACHED. 

3.3 million TEUs (Twenty Foot Equivalent Units) 

THE GROWTH IN CONTAINER 

NUMBERS HANDLED BY PORTS. 

3 BILLION LITRES 

THE INCREASE IN PETROLEUM PRODUCTS 

HANDLED BY PIPELINES. 

TRANSNET 9

HUMAN 

RESOURCES 

TRANSNET’S people are crucial in achieving our goals. 

OUR HUMAN RESOURCES (HR) STRATEGY WILL HELP: 

• Create and develop core skills. 

• Create a productive working environment. 

• Drive performance. 

IN ORDER TO MEET MDS BUSINESS REQUIREMENTS WE WILL: 

• Increase headcount by 25% by filling essential vacancies, 

retaining scarce skills, managing succession planning and building 

technical skills. 

• Drive socio-economic transformation by achieving employment 

equity targets, broadening skills development and creating jobs for 

the youth. 

• Increase the effectiveness of human capital service delivery 

by consistently applying policies and procedures and aligning roles, 

responsibilities and performance. 

PROMOTING 

A CULTURE 

OF TRANS- 

FORMATION 

The Transnet Culture Charter was 

developed by engaging with employees to 

obtain consensus on seven issues that needed to be addressed 

in order for the organisation to achieve its growth objectives. 

The Charter is reviewed annually, providing an on-going 

platform for employee engagement, and sustaining a culture 

of performance. 

GOOD 

COMMUNI- 

CATION. 

THE SEVEN 

CULTURE 

CHARTER 

BEHAVIOURS 

ARE: 

DIGNITY 

AND 

RESPECT. 

A SAFETY 

MINDSET. 

BEING 

EMPOWERED 

TO PERFORM. 

We invest in developing human capital to build a 

strong, people-focused organisation 

BUSINESS 

FOCUS. 

RECOGNITION 

AND REWARD 

FOR GOOD 

WORK. 

DELIVERY 

ON 

PROMISES. 

TRANSNET 11

BREAKDOWN OF 

THE INVESTMENT 

COMMODITY SPLIT (Rbn) 

General Freight Business 

Export Iron Ore 

Containers (Ports) 

Piped Products 

Break Bulk 

Bulk 

Other 

Export Coal 

DIVISIONAL SPLIT (Rbn) 

MAJOR PROGRAMMES 

GFB rail capacity growth to meet market demand 

volumes from 79.7mt to 170.2mt 

Completion of the New Multi-Product Pipeline (NMPP) 

Increase in fleet and improvement to the infrastructure: 

Increase export coal to 97.5mt – including Waterberg 

Increase export iron ore to 82.5mt 

Increase export manganese to 16mt 

TRANSNET 13

TRANSNET 

FREIGHT 

RAIL 

• The operating division transports bulk and 

containerised freight along a 20 500km rail 

network, of which 1 500km comprises heavy 

haul export lines. The network includes almost 

4 000km of branch lines. 

• Transnet Freight Rail’s main business lines are 

the export coal line, the export iron ore 

line and the general freight business. 

• The network and rail service provide strategic 

links between ports and production hubs and 

is connected with the railways of the Southern 

African Development Community (SADC) 

region, thus enabling trade with Africa. 

TRANSNET 15


We will run 

as a scheduled 

railway 

to optimise 

capacity. 

TRANSNET 

FREIGHT 

RAIL 

AND THE 

MDS 

FACTORIES 

POWER 

STATIONS 

MINES 

We will develop 

a proactive 

culture. 

We will 

continuously 

improve 

our product 

offering. 

FARMS 

DISTRIBUTION 

HUBS 

MULTI-PURPOSE 

AUTOMOTIVE 

CONTAINER 

BULK 

PORT TERMINALS 




We will focus 

on skills 

development 

by means 

of training 

programmes. 

We will conduct 

frequent 

performance 

management 

assessments. 

We will improve 

the quality 

of our rail 

infrastructure. 

We will 

determine 

appropriate 

benchmarking 

targets 

across our 

operations. 

THE DEMAND FOR RAIL SERVICES CURRENTLY 

EXCEEDS SUPPLY. CLOSING THIS GAP 

REQUIRES A LARGE-SCALE CAPITAL INVESTMENT 

PLAN (THE MDS) TOGETHER WITH A 

PROGRAMME TO DRIVE BUSINESS 

TRANSFORMATION. 

www.transnet.net 

Rail’s strategic advantage is that it is able to 

move heavy-haul, bulk commodities over long distances. 

Such economies of scale enable lower unit costs. 

TRANSNET 17

TRANSNET 

RAIL 

ENGINEERING 

• Transnet Rail Engineering consists of 

eight business units . 

• It provides a range of essential 

services including refurbishment, 

conversions, upgrades, and 

the manufacture of all rail-related 

rolling stock. 

• Transnet Rail Engineering offers 

an essential support service to 

Transnet Freight Rail and Transnet 

Port Terminals. 

TRANSNET 19


We will 

continue to 

focus on 

working as 

efficiently and 

safely possible. 

TRANSNET 

RAIL 

ENGINEERING 

AND THE 

MDS 

2 COACH 

BUSINESS 

Build, refurbish and 

repair coaches. 

3 WAGON 

BUSINESS 


repair wagons. 

Durban 

Bloemfontein 

Germiston 

4 WHEEL 

BUSINESS 

Manufacture and 

refurbish wheels. 

Koedoespoort 

Salt River 

Uitenhage 

5 

5 

5 

5 ROLLING STOCK 

EQUIPMENT 

BUSINESS 

Manufacture 

components. 

5 

5 

6 ROTATING 

MACHINE 

BUSINESS 

Repair and fix motors. 

7 FOUNDRY 

BUSINESS 

Caste wagon components. 

8 AUxILIARY 

BUSINESS 

Manufacture and 

repair tarpaulins. 

We will grow 

revenue by 

diversifying into 

other markets. 

We will 

expand our 

technological 

know-how 

and grow 

our product 

offering. 

We will focus 

on skills 

development. 

We will invest in 

the training and 

development 

of technical 

workers. 

1 LOCOMOTIVE 

BUSINESS 


repair locomotives. 

WE WILL 

OPTIMISE 

PRODUCTIVITY 

AND EFFICIENCY 

THROUGHOUT 

THE BUSINESS. 

Rail Engineering has a number of external 

clients, including the Passenger Rail Agency 

of South Africa (PRASA). This business 

unit will play a major role in PRASA’s 

recapitalisation programme. 

1 2 3 

WE WILL 

PROMOTE 

A POLLUTION- 

FREE WORKING 

ENVIRONMENT. 

WE WILL 

CONTINUE TO PAY 

SPECIAL 

ATTENTION TO RISK 

MANAGEMENT. 

9 PORTS 

BUSINESS 

Maintain straddle carriers. 

4 

SKILLS AND TECHNOLOGY 

TRANSFER WILL 

BENEFIT THE LOCAL 

INDUSTRY AND 

SUPPORT AN INCREASE IN 

REVENUE AND 

LOCAL JOB CREATION. 

TRANSNET 21

TRANSNET 

NATIONAL 

PORTS 

AUTHORITY 

• Transnet National Ports Authority 

manages, controls and administers 

the South African port system on behalf 

of the State. 

• It is responsible for the safe, 

efficient and effective functioning 

of the ports system. 

• It is a provider of port infrastructure 

and marine services at all commercial 

ports in South Africa. 

• Transnet National Ports Authority owns 

and operates eight commercial ports 

situated in Durban, Richards Bay, 

Cape Town, Port Elizabeth, Ngqura, 

Mossel Bay, Saldanha and East London. 

TRANSNET 23


The MDS 

is key to 

South Africa’s 

economic 

growth strategy. 

BRIAN MOLEFE 

GROUP CHIEF 

EXECUTIVE 

We will 

determine 

performance 

levels for each 

vessel that calls 

in South Africa. 

We will address 

marine operational 

issues such 

as delays, vessel 

movement and 

availability of 

marine resources. 

We will 

accelerate skills 

development 

through 

training and 

development. 

We will 

implement 

equipment 

replacement 

and 

maintenance 

programmes. 

We will institute 

a regular 

performance 

management 

programme. 

We will 

determine 

appropriate 

operational 

targets across 

all operations. 

LIGHTHOUSES 

SALDAnHA | 

TRANSNET 

NATIONAL 

PORTS 

AUTHORITY 

AND THE 

MDS 

PORT LIMITS 

CAPE TOWn | 

TEnAnTS 

MOSSEL BAY | PORT ELIZABETH 

1 2 3 4 


container capacity 

across our ports by 

7,5% per annum over 

the next seven years. 

DREDGING 

SERVICES 

Creates depth for 

vessels to navigate through. 

TUG 

GUIDES 

VESSELS 

TO 

BERTH 

BREAK 

WATER 

Creates a channel 

for vessels to 

navigate through. 

PILOT 

STEERS 

VESSEL 

Trained port 

pilot taken 

by boat or 

helicopter to 

steer vessels 

safely to port. 

We will focus 

on customer 

relations in 

order to increase 

service offerings. 

We will review 

pricing in order 

to comply 

with economic 

regulations. 

5 6 

We will strive to 

enhance marine 

services and improve 

terminal performance. 

PORT 

COnTROL 

TOWER 

Ensures the 

safe navigation 

of vessels and 

dispatches 

pilots, tugs and 

berthing staff. 

BERTHING 

SERVICES 

PORT 

LIMITS 

Vessels wait on 

the perimeter 

for clearance 

from the harbour 

master and for a 

port pilot to steer 

the vessel safely 

into the port. 

Docking and 

undocking of 

vessels. 

nGQURA | EAST LOnDOn | 

We will improve the 

management and 

delivery of infrastructure 

capital projects. 

PORT LIMITS 

HARBOuR 

MASTER 

The harbour 

master controls 

traffic in and out 

of the port. 

TERMInAL OPERATORS 

DURBAn | RICHARDS BAY 


/Divisions/nPAuthority 


volumes and 

efficiencies and 

lower the cost of 

doing business. 

LIGHTHOUSES 

Transnet National Ports Authority aims to enable regional 

integration by establishing South Africa as a transshipment hub. 

TRANSNET 25

TRANSNET 

PORT 

TERMINALS 

• Transnet Port Terminals play 

a strategic role in shaping the 

economic growth and development 

of Southern Africa. 

• Transnet Port Terminals owns and 

operates 16 cargo terminal 

operations situated across seven 

South African ports. 

• Transnet Port Terminals provide 

cargo-handling services to 

shipping lines freight forwarders 

and cargo owners. 

TRANSNET 27


We will invest in 

infrastructure 

maintenance 

and expansion 

over seven years. 

TRANSNET 

PORT 

TERMINALS 

AND THE 

MDS 

We will drive 

growth 

and expansion. 


our footprint in 

Africa offering 

improved 

connectivity 

to existing and 

new markets. 

R1.1 

BILLION 

for the 

expansion of 

Ngqura Container 

Terminal 

We will create 

world-class 

operations 

by improving 

operational 

efficiencies 

and assets. 

71% 

OF OUR TOTAL 

INVESTMENT WILL 

FOCUS ON EXPANSION 

PROJECTS 

R4.3 

BILLION 

to expand the 

Saldanha Iron 

Ore Terminal 

R1.1 

BILLION 

to extend the 

North Quay at 

Durban Container 

Terminal Pier 2 

MULTI-PURPOSE 

TERMINALS 

R9.8 

BILLION 

WILL BE INVESTED 

IN CONTAINERS 

bULk 

TERMINALS 

R1.2 

BILLION 

R22.7 

BILLION 

WILL BE 

INVESTED 

IN BULK 

earmarked for 

capacity creating 

projects at Richards 

Bay terminals 

cOnTaInER 

TERMINALS 

TBU 

Performance 

highlights 

R1.1 

BILLION 

R300 

MILLION 

WILL BE 

INVESTED 

IN BREAK- 

BULK 

allocated to 

Durban Container 

Terminal Pier 1 

Phase 2 infill 

aUTOMOTIVE 

TERMINALS 


/Divisions/PortTerminals 

R7.6 

BILLION 

for the Richards 

Bay Eastern 

Catchment 

Integrated 

Corridor Study 

TRANSNET 29

TRANSNET 

PIPELINES 

• Transnet Pipelines transports a 

range of petroleum and gas through 

3 800km of underground pipelines 

traversing five provinces. 

• The pipeline system is the 

preferred mode of transportation 

of petroleum products as it is costeffective, 

environmentally 

friendly and reliable. 

TRANSNET 31


Fuel loaded 

FroM oil 

Tanker 

durban 

Fuel PuMPed 

aT sCHeduled 

TiMes 

PuMP 

sTaTions 

boosT 

Pressure 

PuMPed 

1 500m 

ABOVE 

sea 

LEVEL 

leak 

deTeCTion 

We will grow 

market share 

to facilitate 

the switch of 

petroleum 

product transport 

from road 

to pipeline. 

We will 

concentrate 

on skills 

development, 

safety and 

environmental 

initiatives. 

END USER 

We will improve 

operating 

efficiencies in 

order to assure 

the continued 

competitiveness 

of pipeline fuel 

transportation. 

GAUTENG 

PiPelines 

REFINED FUELS 

CRUDE OIL 

AVIATION TURBINE FUEL 

METHANE RICH GAS 

DJP AND NMPP 

12-inch & 24-inch 

DURBAN 

SASOLBURG 

COALBROOK 

ALRODE ORTIA WALTLOO 

SECUNDA 

TRANSNET 

PIPELINES 

AND 

THE MDS 

1We will focus on 

increasing capacity 

to address demand 

and prevent volume 

slippage to road. 

We will grow 

volumes and market 

share through the 

commissioning of the 

NMPP. 

3We will 

stabilise and 

grow the gas 

business. 


2 4 


volumes throughput 

in order to optimise 

the future use of 

rail cars operated by 

Freight Rail. 

TRANSNET 33

WHAT IS 

THE TRANSNET 

FOUNDATION 

THE TRANSNET FOUNDATION is responsible for driving and implementing 

all of the organisation’s corporate social investment initiatives. 

Focus areas include health care, education, sport, safety and security, 

and heritage preservation. While expanding the business, we will continue 

with our community engagement via the Foundation. 

THE 

TRANSNET 

FOUNDATION: 

• positions Transnet 

as a socially 

responsible company. 

• contributes towards 

socio-economic 

growth and 

development in 

South Africa. 

TRANSNET 

FOUNDATION 

AND 

THE MDS 

We contribute towards 

the social and 

economic upliftment 

of vulnerable people 

and communities in 

South Africa. 

We deliver sustainable 

developmental 

projects through 

the efficient use of 

resources. 

We conduct CSI 

activities in a manner 

that is consistent 

with sound corporate 

governance and 

Transnet’s commitment 

to remain a responsible 

corporate citizen. 

TRANSNET 35

TRANSNET 

FOUNDATION 

PROGRAMMES 

EDUCATOR 

DEVELOPMENT 

PROGRAMME 

Targets maths, science 

and English educators 

with the aim of improving 

content and skills. 

PHELOPHEPA 

PRIMARY HEALTH 

CARE TRAIN 

Provides affordable, 

accessible primary health 

care services to disadvantaged 

communities 

in South Africa. 

CONTAINERISED 

ASSISTANCE 

PROGRAMME 

Provides infrastructure 

for safety, security and 

social needs. 

SPORT 

DEVELOPMENT 

Encourages sport 

participation among 

learners, and develops 

talent among highachieving 

individuals in 

rural South Africa. 

EMPLOYEE 

VOLUNTEER 

PROGRAMME 

Transnet aims to 

mobilise staff in building 

sustainable communities 

through volunteering. 

HERITAGE 

PRESERVATION 

Manages Transnet’s 

heritage assets, which 

include the Transnet 

museums in Kimberly 

and George. 

TRANSNET 37

SUSTAINABILITY 

WE ARE COMMITTED FOR THE LONG TERM 

Companies worldwide need to focus on long-term 

sustainability. Areas of systemic vulnerability 

need to be identified and opportunities for 

social and environmental value creation must be 

adopted into business practice. 

SUSTAINABLE development meets the needs of the 

present without compromising future generations. 

Earth’s natural resources are finite but we need 

to lift millions of people out of poverty. As living 

standards improve, humanity consumes more 

energy, water and food, produces more waste and 

threatens biodiversity. How can we meet people’s 

needs and also protect the planet This is the 

sustainability challenge of our time. With innovation 

and leadership, sustainable development is possible. 

Increased demand for 

resources – particularly 

coal, oil, iron ore, gas, 

water, food. 

Constrained and costly 

supply of natural 

resources and the 

energy used for their 

extraction. 

Stronger regulatory 

controls on companies’ 

environmental and 

social impacts. 

Sharper stakeholder 

scrutiny of companies’ 

behaviour. 

History will judge 

whether Transnet 

produces lasting 

dividends for the 

South African economy, 

society and the environment. 

Our commitment to 

stakeholders is to 

demonstrate how decisions 

and actions in our rail, port 

and pipeline businesses are 

rooted in a deep concern 

for sustainability in all we do. 

BRIAN MOLEFE 

GROUP CHIEF 

EXECUTIVE 

HOW 

WE WILL 

HELP 

ECONOMIC 

DIVIDENDS 

• Cost-effective freight logistics 

infrastructure ahead of demand. 

• Reliable and efficient rail, port and 

pipeline services. 

• Skilled human resources aligned to 

infrastructure and services. 

• Local supplier industry development. 

• Job creation. 

• Rural development. 

• Regional integration. 

• A financially stable business, able 

to raise and service debt, reinvest 

revenues and pursue agreements with 

private parties to optimise investment 

and services. 

SOCIAL 

DIVIDENDS 

• Good governance, accountability 

and transparency. 

• Zero tolerance of fraud and 

corruption. 

• A representative workforce. 

• Safety. 

• Staff wellness. 

• Broad-based black economic 

empowerment. 

• Corporate social investment. 

• Community benefits. 

• Proactive stakeholder engagement. 

ENVIRONMENTAL 

DIVIDENDS 

• Modal shift from road to rail, lowering 

South Africa’s carbon emissions. 

• Energy efficiency. 

• Climate change mitigation. 

• Climate change adaptation. 

• Water use efficiency. 

• Waste management optimisation. 

• Biodiversity enhancement. 

TRANSNET 39

PROMOTING 

A SAFE 

CULTURE 

SAFETY is a vital element of Transnet’s operations 

and is managed through the Transnet Safety, 

Health, Environment and Quality Management 

system. The following seven Golden Safety Actions, 

communicated to all company employees, set the 

benchmark for safe behaviour within Transnet: 

I will not 

perform 

unsafe work 

and put myself 

and others in 

danger. 

I take 

responsibility 

for myself and 

my team, and 

I don’t blame 

others. 

Regardless 

of my level, 

I contribute 

to improving 

safety. 

If I don’t 

understand 

and if I have a 

problem, I speak 

up and say so. 

I know the 

operating 

procedures and 

safety rules, 

follow them 

and don’t take 

shortcuts. 

I always 

prepare, check 

and report 

unsafe acts and 

conditions. 

I REST 

WELL AND 

WORK 

SAFELY. 

THE 

GOLDEN 

SAFETY 

LEAGUE 

This programme 

entrenches a culture 

of safety at Transnet. 

The League works on a 

system of rewarding teams 

with points – monthly 

and annually – for 

making improvements 

to safety measures in 

the workplace. 

TRANSNET 41

HOW WILL 

THE MDS BENEFIT 

SOUTH AFRICA 

1 2 

Our infrastructure development programme will reduce 

the overall cost of doing business in South Africa. 

3 45 

7 

8910 

6 

The switch from road transport to rail will reduce costs 

and carbon emissions of transport and doing business 

in the region. 

Upgrades and expansions will improve efficiency. 

We will address capacity constraints in many sectors of 

the economy – most significantly in mining. 

Addressing the underdeveloped freight system will 

enable South Africa to become competitive. 

Improved infrastructure can lower supply-chain costs 

of businesses in South Africa. 

Transnet National Ports Authority will optimise 

operational efficiencies to reduce the costs of trade. 

Over the next 

seven years, 

Transnet’s 

R300-billion 

infrastructure 

spending plan will 

significantly reduce 

the cost of doing 

business in South Africa 

and the rest of Africa. 

The capacity of the Port of Ngqura will be increased 

from handling 800 000 containers a year in 2012 to 

two million in 2019, making it a key transshipment hub 

between the East and the West. 

The upgrade of ports will enhance business, and be 

beneficial to South Africa’s trade relationships. 

Foreign investors are keen to invest in the programme. 

BRIAN MOLEFE 

GROUP CHIEF 

EXECUTIVE 

TRANSNET 43

WHAT THE MDS 

MEANS FOR 

SOUTH AFRICA 

SOUTH AFRICA is highly integrated with the world economy, 

which plays a central role in shaping our economic prospects. 

Since 2000, the world has experienced unusually strong 

economic cycles and shocks, and these have been reflected 

in domestic demand and GDP growth. In the near term, South 

Africa will be affected by international trade and investment 

trends, and is vulnerable to slowing global demand. 

THE SUCCESSFUL EXECUTION 

OF THE MDS WILL 

ENABLE SOUTH AFRICA TO: 

THE IMPACT 

OF THE 

MDS ON SA 

Expand its 

mining and 

resource 

processing 

industries. 

HOW WILL 

MDS CHANGE 

TRANSNET 

THE MDS 

WILL MAKE 

TRANSNET: 

One of the 

top global 

freight railway 

companies. 

Become an 

important 

thermal coal 

supplier for 

India and China. 

Maintain its 

position as 

a credible 

supplier of iron 

ore to both the 

domestic and 

export markets. 

Capture its 

rightful place 

as a leading 

manganese 

exporter 

globally. 

One of 

the largest 

employers in 

South Africa. 

One of the top 

companies 

in SA in terms 

of revenue. 

Become the 

regional 

container 

transshipment 

hub for sub- 

Saharan Africa. 

Create a 

reputation of 

world-class 

operational 

efficiencies. 

Position South 

Africa as the 

leading logistics 

hub in the 

region. 

TRANSNET 45

THE IMPACT OF MDS 

ON JOB CREATION 

MDS IS EXPECTED TO SUSTAIN 588 000 

ECONOMY-WIDE JOBS AT ITS PEAK WITH A LARGE 

FOCUS ON SKILLS AND CAPACITY BUILDING 

SEVEN-YEAR 

CAPITAL 

INVESTMENT 

BY REGION 

THE IMPACT OF 

INFRASTRUCTURE DEVELOPMENT 

WILL BE FELT NATIONWIDE 

SEVEN-YEAR CAPITAL INVESTMENT BY MAJOR PROJECT 

R BILLION 

R7.7bn 

The amount to be spent 

on training over 

the next seven years. 

An additional 15 000 

direct jobs 

Increased intake in schools 

of excellence 

R4.7 billion will be spent on 

bursaries and grants 

317 technicians will be in 

training by 2018/19 

A step-up in recruitment in 

critical skills and expanded 

annual intake 

EXPORT COAL LINE – expand rail capacity to 97.5mtpa 

EXPORT IRON-ORE LINE – expand rail capacity to 82.5mtpa 

GENERAL FREIGHT – expand rail capacity to 170.2mtpa 

MARITIME CONTAINERS – expand capacity at Ports to 

9.4 million TEUs per annum 

BULK SECTOR – increase Port capacity to 232mtpa 

(capacity at Port Terminals increases to 120.8mtpa) 

BREAK-BULK SECTOR – sustain Port capacity at 29mtpa 

(capacity at Port Terminals is maintained at 15mtpa) 

PIPELINES – NMPP investment to increase Pipeline capacity 

to 8.7 billion litres per annum 

31.6 

18.3 

151.1 

24.1 

25.5 

*These figures account for infrastructure projects only and not the entire R300 billion set aside for the MDS. 

2.9 

7.5 

TRANSNET 47

DID 

YOU KNOW 

THAT 

BETWEEN 

NOW 

AND 2019 

TRANSNET 

WILL ... 

...spend R80k every 

minute over the 

next seven years. 

...have its ports 

among the top 20 

of the busiest ports 

in the world. 

...load/unload 

6.3 additional 

containers every 

minute. 

...deliver 57 more 

tons of both coal 

and iron ore every 

minute. 

We need to take 

charge of our 

destinies, to put 

our dreams into 

practical purpose to 

ensure that they come 

to fruition. This 

means making sure 

that programmes like 

our MDS work. 

...hire 6 people every 

day (not including 

turnover). 

...be the fourth 

largest supplier of 

coal to China. 

...put 2.7 new 

locomotives in 

service every week. 

...create 223 new 

jobs in South Africa 

every day. 

...earn R4 059 in 

additional revenue 

every second. 

BRIAN MOLEFE 

GROUP CHIEF 

EXECUTIVE

delivering freight reliably

OUR PLAN - Transnet

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