Transport in South Africa - South Africa Essay Example

Transnet is the largest and most crucial part of the freight logistics chain that delivers goods to each and every South African - Transport in South Africa introduction. Every day Transnet delivers thousands of tons of goods around South Africa, through its pipelines and both to and from its ports. It moves that cargo on to ships for export while it unloads goods from overseas. Transnet is made up of the following operating divisions: Transnet freight rail (formerly Spoornet – the freight rail division) •Transnet rail engineering (formerly Transwerk – the rolling stock maintenance business) •Transnet national ports authority (formerly the NPA – fulfils the landlord function for South Africa’s port system) •Transnet port terminals (formerly SAPO – managing port and cargo terminal operations in the nation’s leading ports), and •Transnet pipelines (formerly Petronet – the fuel and gas pipeline business, pumps and manages the storage of petroleum and gas products through its network of high-pressure, long distance pipelines)

Transnet as a logistics service provider Transnet is generally accepted as major transport organisation in SADC context. Consider the fact that its only commercial railway operation in South Africa. It also own and operate in a fleet of domestics container ranging from 6 meters to 1,5 meter mini containers. The re-acceptance of South Africa in global economics arena had similarity profound effect on the strategy of the company. The emphasis shifted away from transport to management of material inventory.

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Customer and service provider were obliged to become focused on solutions in value chains rather than on the movement of goods only. The growth and development of information technology makes it possible for the companies like Transnet to be part of logistics value chain, if you can compare strategic plans of Transnet from 20 years ago to present it is important to note how to use the word logistics grew in stature in mission and vision statement. Our company plans are direct and indirectly focus on improving the ability to provide an inclusive logistics service to customers or to be sufficiently highly regarded as an operator hat understand logistics, the most recent restructuring of Transnet has narrowed more significantly than previous attempts. Transnet has placed the emphasis on a logistics service based on surface transport. The 3 major operations in this work are Transnet Freight Rail (TFR), Port Operations and Pipeline Operations. The TFR has a diverse focus on the rail corridor in the country. They link the surrounding area to the port and South Africa to the neighbouring countries. For all realistic purpose the rail, pipeline, and port operations are vital parts of a total logistics offering.

Through these operation s Transnet makes every effort to be able to compete at the logistic level in Southern Africa and abroad. Key approach to logistics within TFR The Transnet logistics strategy have rail and port preconception in terms of operational activities in the logistics value chain. The pipeline operation is obviously not to shrugged off and the combined rail-pipeline activity for bulk liquids is a powerful competency in the mission for lengthwise service in the value chain.

Transnet has chosen to focus on major transport corridors, the long-term view is to find a more suitable method to accommodate a branch lines that do not make a meaningful contribution to main corridor operations. Similarly the focus is clearly on freight. Passenger services are destined to become the responsibility of the Department of Transport. Our new strategy is about freight logistics services on the major national and international freight corridor. These logistics services, which may be in-house and contracted in an association with compatible, complimentary service provider across the whole logistics value chain that is:

Transport service related to the assets of the company.(road, rail, pipeline and port ) Information intermediation including booking, forwarding, clearing, exchange etc Provision of management system, supply chain solution as well as financial solution. Lead logistics service provider

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