 The
Quantum Leap initiatives aims to change the trajectory of performance
improvement to a significantly higher level.
This will be achieved
by enhancing operational efficiencies across the Company which will
result in an improvement in the reliability and predictability of
services while maintaining the financial sustainability for the Company.
The successful turnaround of the Company laid the foundation for
the Growth Strategy adopted in 2008. Achieving the targeted growth in
volumes has been impacted by the global economic crisis – given the high
correlation between commodity volumes and containers handled by Transnet
and global economic growth. Despite the impact of the global economic
crisis the outcome of the Growth Strategy is evident in the performance
of the Company during the year. While operational performance has
improved in many areas of the Company, the rate of improvement has not
met our expectations. Progress has been slow and at best incremental.
During the year the Board approved a strategic shift from the Growth
Strategy. This shift constitutes a number of focus areas and initiatives
to be implemented in the medium-term, and will enhance Transnet’s
ability to deliver on its mandate and position
the Company to
support the long-term competitiveness of the South African economy.
The strategy going forward will be on realising a Quantum Leap
improvement in customer service by improving operational efficiency in
all areas of the business together with volume growth while maintaining
the financial stability of the Company.
This is embodied in the Quantum Leap Strategy as set out below:
Harnessing volume growth opportunities;
Achieving substantial improvement in customer service; Increasing productivity and operating efficiencies; Implementing effective cost-control and reducing the cost base; Continuous improvement in safety and environmental compliance; and Improving asset utilisation to achieve appropriate returns.
Increase productivity and efficiency
Reduce wagon cycle/turnaround times by >20%. Reduce deviation from schedule by >25% (departures/arrivals). Improve locomotive efficiencies by >30% (GTK/loco/month). Improve container handling efficiency from 22 to 28 with stretch
target of 30 GCH. Reduce shipping delays and ship turnaround time (Durban) and
increase volumes per ship turnaround time (STAT) hour by >20%. Security of petroleum supply and reduce production interruptions
by
>20%. Customer relationship management and effective contract
management. Improve cross-Operating division integration (operational
planning
and execution). Improve interface management between customer, rail and port,
and
vice versa. Corridor expansion projects.
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Quantum
Leap Achieving objectives within a framework of corporate governance, internal controls, dynamic management
reporting, leading environmental practices and
legal compliance. |