Sustainability Report 2012 - Transnet

Gross Value Add resulting from Transnet capital and operating expenditureValue added is defined as the financialvalue created by the activities of abusiness and its employees.To unlock sustainable value for allstakeholders, the execution of strategyresults in value created by the activitiesof the business and its employees.Value added 2010/11Value added 2011/12Sustainability performance: Economic dividendsRefer to Volume 1Appendix B forfurther details.Employees 42%Capital providers 12%Government 3%Re-invested 43%Employees 42%Capital providers 13%Government 1%Re-invested 44%Cost-effective, efficient and reliable freight logisticsand infrastructure ahead of demandThe year under review proved to be an exceptional year withinvestment in infrastructure and continuous business processoptimisation translating into an average improvement of 18,0%in operational efficiencies across the business and industrycommending Transnet on its exceptional performance, especiallyon the export lines.In line with the Quantum Leap strategy, Transnet’s focus in2011/12 was on meeting volume targets and rolling out thefive-year R110,6 billion investment programme. A total ofR22,3 billion was invested (compared to R21,5 billion in2010/11) to maintain and expand current operations to meetfuture demand. This excludes the R1,2 billion payment made forthe former Durban International Airport site which is classifiedas a short-term investment, until the land has been transferredin line with International Financial Reporting Standards.We highlight here our key achievements, challenges and targetsin delivering cost-effective, efficient and reliable freightlogistics and infrastructure ahead of demand for each majorcommodity business sector.“Ten years from now I see us operating aworld-class freight business. Theinvestments we are currently making willensure that.”Brian MolefeGroup Chief ExecutiveCAPITAL INVESTMENTPAYS OFF18,0% IMPROVEMENTIN OPERATINGEFFICIENCIES ACROSSTRANSNETCAPITAL INVESTMENTR22,3 BILLIONSustainability Report 201225