Speeches for the Transport Sector, 2009

The provision of an efficient, world-class rail, ports and pipelines system is one of the key prerequisites for sustainable economic growth, and Transnet’s four-point turnaround, and now its new Growth Strategy, will ensure that the South African economy is better able to cope with demand without strain on the country’s freight transport system.

As custodian of ports, rail and pipelines in the country, Transnet has the unenviable task of ensuring that it delivers efficient and cost-effective infrastructure and operations in order to enable economic growth and development.

A lack of investment in key infrastructure spanning almost three decades has resulted in massive backlogs and challenges in meeting the increased demand brought about by a growing economy. The role of Transnet Freight Rail in the improved efficiency and productivity of the country’s freight transport system is therefore invaluable.

The capex programme underway aims to address these efficiency issues, and Transnet Freight Rail, through the launch of this new National Operations Centre and other such initiatives, is taking a step in the right direction. The centre is at the core of the turnaround in TFR, and the new customer-focused approach is essential towards entrenching a culture of accountability throughout the Group.

Increased investment in rail infrastructure and rolling stock, through, among other things, the purchase of locomotives by TFR, will also boost performance of overall rail operations. Creating capacity ahead of demand – improving safety performance and reliability of the fleet are paramount for the success of TFR.

Strengthening its balance sheet becomes key as Transnet approaches both local and international capital markets to finance the capex programme, with R35bn to be spent by TFR alone over the next five years.

I would like to congratulate TFR’s CEO Siyabonga Gama, group CEO Maria Ramos, as well as your teams, for a job well done. This 24/7 centre will ensure not only that the whereabouts of all trains is accounted for, but also gives customers peace of mind that their goods receive top priority while in transit. A lot of hard work still lies ahead with regard to the group’s Growth Strategy, but I am confident that we will be ready to face all the challenges and opportunities it presents.

Thank you.