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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