Core strategy

An active strategic plan aligns with Transnet's intent and vision. This includes a focus on key segments of the market; disposal of non-core and non-freight business to drive future growth, enhanced accountability, governance and operational efficiencies.

The growth vision relies heavily on collaboration with customers optimisation of corridors. This includes strategies for winning back market share from road hauliers and integration with the country's overall logistics chain.

In order to achieve high levels of efficiency, Spoornet will inject capital investment to the value of R14bn by 2010. Ninety percent of the expenditure is allocated to the rehabilitation and renewal program for infrastructure, locomotives and wagons.

The operational efficiency thrust is based on the corridor concept and there is a commitment to: sound business principles within a challenging regulatory framework. The emphasis is on safety, ever-improving customer services, efficiency and attracting and retaining a skilled workforce.

2010 is the destination on our "Rail Track Map", a journey that begins with basics, such as a renewal of infrastructure and a strong commitment to ongoing investment in rolling stock.

As we journey down the track by improving business performance, operational efficiency and customer service we will divest of non-freight business activities to ensure a sustainable and leading business position in the rail industry.

Our strategic direction and business turnaround plan is geared to place us in an unprecedented position within an increasingly dynamic environment - not least the development and empowerment of SMME's and facilitate the entry of additional operators to participate non-core freight activities.

Besides improving our bottom line, this vibrant, profitable and empowering approach offers many of our employees the opportunity to transfer skills and experience and to apply them in their own businesses. As new entrants access the industry, competition between corridors is likely to increase between rail operators and a broadened industry of terminal operators. Rolling stock maintenance and leasing industries will emerge.

We believe the consequent synergies and development of private public partnerships, coupled with maximised interaction with other Transnet divisions, will have an enormous impact on the freight market. Greater volumes will be transported by rail, with subsequent growth in Spoornet's market share with rail leading economic development and national competitiveness. The benefits to customers will be immeasurable as we focus on what we do best, while those with a personal stake in the peripheral services raise standards and innovate.

We are particularly proud of our pioneering approach to skills development, black empowerment, gender equality and the development of our human capital.

Presently, as skills development programmes and a drive to place people where they are best suited begin to kick-in, there is a palpable sense of a new journey with a meaningful destination.

Both within the administrative corridors and on the shop floor there is renewed energy and commitment to individual responsibility and an intensified focus on safety.

Employees increasingly appreciate that their own destiny and career security rests with the financial success of the company. This automatically translates into better service customer service and more creative offerings.