Port and rail integration plays key role in Transnet plans

Transnet’s corridor strategy is clearly taking shape, with general managers already appointed to head up the Sishen Saldanha, Cape and Richards Bay corridors. A likely candidate for Durban is yet to be named. It’s all part of the policy of integration that Transnet has identified as an essential element of supply chain efficiency, says general manager Nosipho Damasane, who sees herself as one of the key custodians of Transnet’s growth strategy. Stakeholder input is playing an increasingly significant role in Transnet’s planning and development, clearly demonstrated in the corridor strategy “At a conference to which we had invited key customers, they told us how they were doing globally and how they were competing. “Kumba said that we had affected South Africa’s competitiveness – that they had lost out to China and Brazil because although they could produce the product, they could never move it because of a lack of integration between rail and ports.” Clearly integration with rail is critical from every perspective. “We had to look at how to integrate the business and we came up with our corridor strategy. That began to inform how growth would happen for Transnet. “We started two years ago with the Sishen Saldanha corridor. A general manager was appointed to run it and integrate what was happening with TFR, TPT, TNPA and its customers.” Customer growth was then aligned with growth requirements from a rail and port point of view. “By integrating those plans we aligned our maintenance plans and ramp up plans in terms of what volumes to expect in what year for a five year period and we agreed on what investments were necessary from a corridor point of view – so it’s fully integrated and the customer is part of the plan,” said Damasane. “We can’t grow with the customer if efficiencies aren’t right.” From a global perspective, the global crisis will have an impact, says Damasane. “If we recover in the third quarter of next year as people are predicting, we will have some capacity issues. “It has been difficult to continue with robust investment plans. We have had to cut back on certain investments but we are going ahead with Coega – two cranes are already on the water so in the container sector we will have some back-up.”