Localisation for Africa
Transnet Freight Rail’ s contribution to the economy of the country
TFR remains focused on delivering the seven year Market Demand Strategy( MDS) and the adherence to the mandate as set out by the shareholder, to contribute to South Africa’ s economic growth and national objectives which directly contributes to the objectives of the national plans such as contribution to local and national job creation targets. The MDS is a central component in the growth of the government’ s strategy through investments in infrastructure. The MDS will, through its own infrastructure development strategic objectives, aim to improve the country’ s economy as a whole.
Transnet Freight Rail is the largest division of Transnet and therefore carries the weight of the investment in operational infrastructure. Transnet Freight Rail has looked at the market of the commodities and has designed its operations and set goals according to what the market demands. In order to deliver on our promise and help grow the South African economy and contribute to a better life for our fellow citizens, we must double our efforts to make TFR a people centred, performance driven and customer focussed organisation. Driven by strong volume growth, Transnet will be positioned as a top tier logistics and transport provider. The MDS will see an increase in rail volumes from approximately 200 million tons to 350 million tons over the next seven years.
The Transnet Freight Rail’ s business plan aims to narrow the gap between what customers demand in terms of freight to be transported and what the rail system has the capacity to provide. This strategy involves a significant focus on operational efficiency improvement coupled with capital investment. Transnet Freight Rail has implemented six core strategies( each with a host of initiatives) to ensure that we close the gap between demand and supply. Operational Planning and Efficiency is one of the strategic pillars of the MDS. Transnet Freight Rail operates using a scheduled railway philosophy. This encompasses operating trains in accordance with an Integrated Train Plan( ITP) that is appropriately resourced to optimise capacity through careful deployment of assets to extract efficiencies. The aim is to significantly improve operational efficiency and customer service delivery. The principle of extraction operational efficiencies towards globally accepted benchmarks has been embedded in all operational practices using the Lean Six Sigma philosophy aimed at continuous improvement, value extraction and operational excellence.
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