Growth Plan:Transnet has our Backing -South Africa Railroad Chief
* Transnet should Implement Growth Strategy- African Railway Roundtable President
* Inside Transnet’s African Plan
South African Railway giant,Transnet has the support of industry chiefs to grow the sector and lead Africa,Chief Executive Officer of Railroad Association of South Africa,Mesela Nhlapo has assured.
Reacting to fears that current internal management issue is distracting the giant rail group from expansion and rail leadership , Nhlapo in a tweet said the Railroad Association is closely supporting Transnet to grow the railway sector.
She noted that due to the enormous capacity of Transnet and her know how,she will continue to lead Africa as the most developed rail group on the continent.
In her words,”@AssociationRail and industry captains will continue to support Transnet to grow the industry. Integration of the continent will be lead by @follow_transnet”.
The President of African Railway Roundtable ,Olawale Rasheed had raised alarm recently that the corruption probe within Transnet has slowed down or virtually destroy the African growth strategy designed to extend Transnet know-how to other African countries.
In a statement last week,the ARR President noted that “African countries have no need to look outside the continent for their railways needs.South Africa has manufacturing ,production and technical capacity to satisfy the needs of many African countries within the railway sector.
“Luckily,Transnet has an African growth strategy which is a
win win situation for all willing countries.Our worry is that Transnet
is getting distracted.Management is bugged down witj probe here and
prove there,leaving the implementation of the growth strategies in
tatters”,Rasheed of the ARR said.
Inside Transnet’s African Plan
Transnet’s former management made a presentation which will interest stakeholders in African railways.We produced a summary of the report below:
“The presentation looked at a SWOT analysis, the risks for Transnet entry into the rest of Africa, a market analysis of container traffic in the African market, the challenges facing ports in Africa, the rail market sector and locomotive and wagon building market, the pipeline sector, trans-shipment hubs, and Transnet as an integrated value proposition. It had major hubs in East, West, Central Africa, and the East African islands. It was intending to open satellite offices through Transnet International Holdings.
” Its main strengths included its operational capacity, its brand, the fact that it was a leading logistics company and ran training programmes that were highly regarded globally, and its willingness to partner and collaborate, as well as its integrated pipeline, rail and maritime offering. Rail transport had been neglected but offered strong opportunities for transport of mined minerals. Containerisation was another important offering since many African ports lacked deep water berths. Pipeline contracts would be growing through increased opportunities in the oil and gas sectors.
” Competition was expected from global operators who had an established presence in sub Saharan Africa, including China, whilst the poor policy and regulatory and political risks in Africa posed a threat.
“Transnet described its four key revenue drivers: increased
rail volume, exports of wagons and locomotives, geographic expansion of
ports with concession agreements and potential opportunities in
pipelines. It operated under a governance model with forums hosted by
the Department of Public Enterprises, with emphasis on how this
department and the Department of International Relations (DIRCO) could
support the State Owned Companies”,the report noted.