Sustainability Report 2012 - Transnet

Economic dividends (continued)Rail Engineering – global firstMarch 2012 saw the culmination ofa project started in 2007 with abenchmark award for RailEngineering.Rail Engineering is the firstorganisation globally to developLean Six Sigma within the SAPProject and Portfolio Management.The award for this historic globalinnovation was received by RailEngineering’s Chief ExecutiveOfficer Mr Richard Vallihu from thePresident of SAP (Europe, MiddleEast and Africa), Mr Franck Cohen.Currently, Rail Engineering hasapproximately 838 projectsunderway, with 453 Lean Six Sigmaefficiency in management of thesekey projects, Rail Engineeringinstalled the new SAP PPM. LeanSix Sigma has not only led toimproved operational efficienciesbut has achieved monetary savingsof above R250 million since 2007.“Our monetary savings as a result of the Lean Six Sigma projectswhich we started in 2007 is at this moment a quarter of a billionRand . . . As much as we as a team are going to celebrate this award,this is just the beginning of more ventures that we shall continue toembark on.”Richard VallihuChief Executive: Transnet Rail EngineeringRail Engineering’s Wheel Business – Koedoespoort“I am pleased to announce that the Ports Regulator and Transnethave agreed to an arrangement which will result in exporters ofmanufactured goods receiving a significant decrease in port chargesduring the coming year, equal to about one billion Rand in total.”President Zuma,State of the Nation Address9 February 2012Port tariff reduction of R1 billion to local manufacturing export industry for 2012/13In order to address traffic flow imbalances primarily in the container and automotive sector (evident incontainer exports where approximately 35,0% of boxes are empty), National Ports Authority proposedto the Ports Regulator, a once-off tariff reduction of R1 billion to the local manufacturing exportindustry for 2012/13 while a longer term port pricing strategy is being finalised.The R1 billion tariff reduction and discount was approved by the Ports Regulator as part of the NationalPorts Authority tariff determination for 2012/13. National Ports Authority is implementing thefollowing discounts on its export cargo dues tariffs: The export cargo dues tariff discount operates on a first come, first served basis during 2012/13 andterminates once the threshold value of R1 billion is attained. The discount is expected to improveefficiencies and achieve optimal utilisation of terminal handling and port infrastructure.38