D.Phil. / The progress of the South African economy relies heavily upon earnings from physical exports, which depend increasingly upon the competitiveness in global markets of the maritime supply chains that serve the country. Competition in world markets is becoming increasingly stronger as production resources are obtained globally and subsequently the competition exists between the effectiveness of whole supply chains rather than only production costs. South Africa therefore has great interest in ensuring that its maritime supply chains compare with world best practice. Amongst other things, this world best practice requires those chains to function as entities structured to serve their logistical purpose, i.e. that it should not include links consisting of separate transport businesses. In practice, this requires that links traditionally provided by third parties be structurally integrated as cost centres instead of profits centres in the chains. Such integrated maritime supply chains will inevitably only be developed by the intervention of chain leaders. South Africa’s major supply chains conveying commodities and manufactured products are examined in order to determine the scope for the integration of their links as a means of raising their efficiency as ‘complete chains’. Features of selected maritime supply chains serving other countries that could serve as models for the structuring of South Africa’s are identified. Transnet’s role in the existing maritime supply chains in accordance with the policy of the Government is examined and attention is focused on the under-investment in recent years that has led to the deterioration in the company’s performance. The rejection by the Government of the privatisation of the core assets of the railways and ports in favour of public-private partnerships, as a means of overcoming the problems, is considered in order to conclude whether a solution will be forthcoming in that manner. Special consideration is given to Transnet’s proposed spending of R40bn on infrastructure projects and attention is focused on the fact that this will not address all the problems. The marine links in South Africa’s maritime supply chains are currently provided by foreigners. Virtually all South Africa’s bulk exports are sold free-on-board, which concedes control over the shipping of the cargo to foreign importers. Reasons for such arrangements are complex and chartering by South African exporters in order to maintain control is often not feasible, although it is done in the fruit trade and by Australian exporters of iron ore competing with South African exporters. Ship owning by South Africans will facilitate new legislation to increase the market share of citizens in the country’s exports and imports, but price-wise market entry will be difficult and it is debatable whether exporters will make use of their services. In the liner trades, the trend is for shipping companies to integrate port and overland links into their services, and the efficiency of South Africa’s container supply chains will need to be raised in that manner. The criteria for determining maritime supply chain efficiency and the integration of the links of particular South African chains based on their cost structures, as well as the leadership needed to pursue such development, are motivated. Proposals are also made for the integration of the links of the iron ore and coal supply chains under the leadership of public-private partnerships, as well as for a container supply chain incorporating both a dedicated terminal in the Port of Ngqura and the railway between Coega and Gauteng, under the leadership of a liner shipping company or consortium of companies. The conclusion is reached that the present role of Transnet in accordance with the declared policy of the Government is not conducive to improving maritime supply chain efficiency through the structural integration of the links. It is also concluded that the efficiency of the chains could be raised through private leadership with public participation, subject to a change in the Government’s policy towards the role of Transnet in order to allow such leadership. / Prof. J. Walters Prof. G.C. Prinsloo

A research report submitted to the Faculty of Engineering and the Built Environment, University of the Witwatersrand, in fulfilment of the requirements for the degree of Masters in Engineering: Industrial Date: 11 October 2016 / This research investigates Transnet‟s Foundry Quality System, focusing on the quality issues in the Foundry. This includes determining the total cost of quality for the business, investigating the impact of the specific defects on the productivity of the business. Two products were analysed namely, the top centre casting and the brake shoe holders. Root cause analysis was done on each stage of the Foundry process to understand the causes of defects. Data was collected and analysed and most of the defects that occur were found to be the result of poor quality management which consequently causes low productivity and low profits. Also identified was a lack of skilled personnel in specific areas in the Foundry. Furthermore data collection as part of the quality system in the Foundry is not effectively executed and this implies that performance cannot be fully measured. Non Compliance reports from customers were analysed and the total cost of quality was calculated to be R1 214 690.73 based on the data that was available. The impact of defects on productivity was also analysed for the financial year 2014/2015 and it was calculated to be 47% for the brake shoe holders. The target for the Foundry for the financial year was R4 048 799.30 for the actual productivity in sales amounted to R 1 915 510.60. For the top centre the estimated target for the financial year 2014/2015 was R6 271 500.00 and the actual productivity amounted to R3 305 250.00. Statistical process control charts were drawn and it was discovered that some of the machines owned by the business are not capable of producing to specification. Qualifound was identified as a framework to improve the Transnet foundry quality system. It is recommended that top management be educated in the concept of cost of quality and its impact on business profitability and that skilled quality coordinators be appointed to facilitate continuous quality maintenance. / MT2017

Project failure continues to be a concern even though standards and procedures have been in place for years to counteract the issue. Many reasons for the high rate of project management failure have been purported in the research literature (Bauer, 2006; Hammoud, 2008 & Kerzner, 2002). This study analyzes the problem of high failure rate of major capital projects within Transnet Freight Rail. In addition to reviewing research literature that addresses projects failure concepts, critical success factors, project management principles, strategic alignment, skills and capabilities of project managers and how these factors might relate to major capital projects failure, the study will examine possible problems at the organizational and functional level that might be contributing to the high failure rate of major capital projects within TFR. / Graduate School of Business Leadership / M.B.A.

Project failure continues to be a concern even though standards and procedures have been in place for years to counteract the issue. Many reasons for the high rate of project management failure have been purported in the research literature (Bauer, 2006; Hammoud, 2008 & Kerzner, 2002). This study analyzes the problem of high failure rate of major capital projects within Transnet Freight Rail. In addition to reviewing research literature that addresses projects failure concepts, critical success factors, project management principles, strategic alignment, skills and capabilities of project managers and how these factors might relate to major capital projects failure, the study will examine possible problems at the organizational and functional level that might be contributing to the high failure rate of major capital projects within TFR. / Graduate School of Business Leadership / M.B.A.

M.Com. (Business Management) / Please refer to full text to view abstract

M.Com. (Business Management) / Affirmative action is extremely topical in South Africa today, not only in terms of business principles but among individuals and communities as well. Since the establishment in the late 1850's of the South African Railways and Harbours and it's eventual change to the present-day Transnet, a "white" culture was constantly being established. For the past number of years Transnet is engaged in bringing about a culture change to transform the company into an equal opportunity company. The purpose of this study is to describe the the full meaning of affirmative action in Transnet and to put the importance of such action for both the Company and it's employees into perspective. The methods used by Transnet to apply affirmative action with the least possible resistance and interruption of business are also discussed. In Transnet affirmative action is part of a process known as the tum strategy. Through a personal interview with the Group General Manager (Human Resources) of Transnet the origin and implementation of the turn strategy is explained. The tum strategy consists of thirteen substrategies that must be completed before the exercise can be called a success. The success of the turn strategy could rest on the evaluation and monitoring of the results of the substrategies. A spirit of co-operation between Management and organised labour was achieved by involving both parties as members of the Turn Strategy Council. The Turn Strategy Council is responsible, inter alia. for monitoring the turn strategy. In conclusion specific findings and recommendations are made. Although it may be necessary to make adjustments to suit local circumstances, the value of the study is in the opportunity it affords other companies/organisations to use Transnet's model to implement affirmative action.

M.Com. / Please refer to full text to view abstract

D.Phil. / The primary objective of this thesis is to follow a systems approach to improve property management in state departments and state-owned enterprises. The public sector, bureaucracy and state-owned enterprises (SOEs) globally and in South Africa (SA) are examined using a systems approach to provide the context for property management in state departments and SOEs. The effectiveness of property management in SA‟s National Department of Public Works and National Department of Public Enterprises are evaluated. Property management in rail transportation organisations globally and in SA receives focused attention. The SA state-owned company Transnet Limited, primarily a rail transportation enterprise, and Propnet, Transnet‟s property management unit, are examined in depth. Lessons learned, findings and recommendations are presented in a Management Matrix. The Management Matrix is incorporated in a State Property Management Transformation System, the implementation of which will improve property management in state departments and SOEs both globally and in SA.

M.Ing. / This report addresses an empirical study into the re-structuring of Transnet group of companies. The study is based on the outcome of the re-engineering process focusing on Spoornet as a member of Transnet. The departments partially studied are, the Infrastructure Maintenance department and Train Operations department with-in Spoornet. The objective of this study is to achieve a break-even point between maintenance and the business side so as to increase operational profit in Spoornet. Outsourcing is a management tool used to make more profit. It is also a way of getting rid of unwanted business units. This will help increase shareholder value and reduce operating costs so that management can focus on core business units. The results expected from outsourcing in this study are aligned with the business process engineering "BPR" results. From the BPR results the business units were classified as core and non-core business units. Non-core business units were discontinued while core business units were further classified into core department, which is the running of trains, and the non-core department as maintenance departments. The maintenance departments are fully represented on a functional level while they used to have a full representative on the corporate level before restructuring. Cutting-off these logistic support departments at a corporate level, can have an effect on maintenance being undermined due to lack of specialists input at a higher level in terms of systems engineering and maintenance. This can lead to system's lack of maintenance and an increase in systems failure, making the system un-reliable and unsafe for the passage of trains while on the other hand the business will be lost back to the competitors, who in this case is the road freight business. A case study is discussed in the dissertation where value added techniques such as the business turnaround process, outsourcing and Integrated Logistic Support "maintenance" were applied in this study.

D. Litt. et Phil. / The white paper on privatisation and deregulation in the Republic of South Africa, was tabled in 1987. This paper outlined a policy for the possible privatisation of state-owned enterprise. Generally this step was favourably met by "Big Business" and a number of political players, but rejected and resisted by the Congress of South African Trade Unions (COSATU). This phenomena led to the central assumption of this study. It was assumed that the rejection of privatisation (or manifestations thereof, such as commercialisation) by COSATU, would not necessarily be indicative of the cognitions and attitudes which labour union employee members, hold of privatisation/commercialisation. The purpose of this study was to explore this assumption. This assumption was to be researched among a sample of official members of the South African Railway and Harbours Workers Union (SARHWU); an affiliate of COSATU. A further purpose was to explore the influence which an official communication action, (aimed at the employees of a commercialised parastatal), may have had on the cognition and attitude of the sample. The aim was to draw from these findings to formulate directives for the internal strategic communication management of commercialisation to black SARHWU members. To achieve this purpose, the concept privatisation and commercialisation were conceptualised, and fundamental differences between the two concepts highlighted. An extensive "theoretical study was undertaken to identify the communication principles on which the communication of innovation (change) are based. The concepts of privatisation/commercialisation and the principles of the communication of innovation, were integrated into a framework for the formulation of a communication strategy and strategic communication plan for commercialisation.