Transnet job-creation scheme on track

Transnet is expected to deliver its newly developed Supplier Development Plan (SDP) to government by the end of June this year for comment. The strategy, which focuses on opportunities that lead to increased local content, skills development and subsequently quality job creation, has been on the cards since it was first conceptualised in 2007. According to Fanie van der Walt of Transnet, the strategy has been developed in two phases with the first culminating in the hand-over of the plan to government. “We are in the process of finalising the plan after which we will hand it to government by the end of June as it is a public domain document. After comments have been received, it will then be embedded within the organisation during the execution phase which ends in March 2012.” According to Van der Walt, the plan is aimed at developing supplier intelligence and looking beyond just cutting costs when negotiating best value contracts. “It looks at our strategies around procurement, capability and capacity-building.” He said between 2009 and 2011 Transnet had focused on formulating the plan by writing processes and procedures, getting a control framework in place and developing a policy that now has to be signed off. “It is about localising supply and skills, while also standardising our procedures and monitoring.” Van der Walt said notable successes had already been achieved through Transnet’s Competitive Supplier Development Programme. “Our agreement with GE to build 100 locomotives is a prime example. Through the supplier development programme GE will build ten of the locomotives in the USA while the other 90 will be assembled in South Africa. This will lead to new jobs being created in South Africa while 20 people have already been trained by GE in the US.”