Address by Mr. Siyabonga Gama Chief Executive, Spoornet

Merit Award Ceremony - 09th October 2006

Programme director, members of the Spoornet Executive Committee here present, our bursary holders, distinguished Spoornet colleagues, Good afternoon.

Today's event takes place against a backdrop of wide ranging reforms across the Transnet group where we have launched our people project. The people project is a key facet of our transformation journey and puts the peg on the ground around our philosophy to build a great Transnet company around our people. At Transnet and across our five operating divisions, Spoornet, Transwerk, NPA, SAPO and Petronet, we are committed to a single vision and strategy underpinned by a set of core cultural value drivers that will drive our success. The culture statement identifies what the characteristics of a winning Transnet are and will provide a beacon for all staff. We have agreed that a key pillar in building a winning organisation would best be served by the outcome where our customers that we are reliable, responsive, and trustworthy and we become a preferred service provider.

It is only through our people attaining key attributes that we have the possibility to match the desired outcomes. As a company, we have to create the atmosphere where team spirit is high and individuals are generally interested and involved in the company's affairs as a team. The key attributes of taking accountability, ethical conduct and behaviour, discipline and hard work, can serve us well in bringing a results oriented culture. Our employees must therefore be heard; we must consistently communicate team objectives, individual responsibilities and provide feedback on progress being made. It therefore means that from a leadership perspective, it is critical to hire and retain a leadership core that inspires and empowers the teams to work towards a common purpose. We must make sure our employees are involved in team decisions, are given space to make inputs and are willing to adapt their ideas to align with the goals of the team. It therefore follows that there is an expectation to ensure we hire and retain employees who are not territorial, but are imbued in the culture of information exchange and sharing, embrace cultural diversity and exhibit flexibility to function in a mature manner within a matrix organisation. We will have to thrive within a culture where passing the buck and mediocrity is not tolerated and persons own up to their mistakes and failures so that we can all be collectively proud of our achievements. These are indeed exciting times for the organisation and its people.

There are many challenges ahead and I'll share some of these with you very briefly.

South Africa's road infrastructure is under enormous pressure and cannot accommodate more traffic and nor is this cost effective for the country's economy. Spoornet needs to get the traffic back on to rail. The only way that we can do it is by rendering a predictable, cost effective service to our clients. We also need reliable locomotives and signalling systems, enough wagons and a sound infrastructure. All of this can only happen if we have the know how to operate and maintain these resources - that is where you come in.

When we listen to the news, read the newspaper or watch television, one message is continuously heard - shortage of skills - especially in the fields of engineering, financial and information technology.

Transnet and Spoornet are investing billions of rands in the development of infrastructure. This however will be a fruitless exercise if we do not have the people to manage these contracts, to oversee the construction projects and to balance the books by ensuring we prioritise projects with an adequate return on investment.

Spoornet will be spending R31.5-billion in the next five years on the upgrading of Rail Infrastructure and Rolling Stock. We are also challenged to reduce the cost of doing business, to be innovative and to reengineer and transform the manner in which we work. If our country were to be competitive in the global economy, all of you will have to play a major role to ensure that we take the actions that will exhibit progress, and success is a conscious choice to get onto a road where our contributions, through hard work, toil and perseverance begin to bear fruit.

Spoornet invests millions of rands in the development of Human Capital on an annual basis. We support students at various institutions countrywide. We also employ them, depending on the availability of suitable vacancies. Human development is a focus area and we want to ensure that you experience a climate within the company where you can grow and develop to the maximum.

Each individual has to ask him or herself where am I going with my life and how am I going to get there - do I have a roadmap? The students and newly appointed employees present here today obviously have proved to us that they can make a difference and know exactly where they are heading with their careers.

The reason for having a merit award function is to recognise achievers, to say to you we have noted your efforts, to say well done and that we are proud to be associated with you. We are acutely aware of the war for talent, which within a growing economy, is going to become more of a challenge in future. Spoornet does not believe in poaching. We rather invest in growing our own talent pool and create positive relationships that will carry us into the future.

The reality of life is, that what you put in is what you get out - do not expect to pick peaches if you have planted a lemon tree. In Spoornet we have no place for passengers. Every employee must contribute to the success of the company.

In conclusion, allow me on behalf of my EXCO colleagues to take this opportunity to say to each and everyone of you - congratulations and well done. To our newly appointed employees, welcome to the Spoornet family, I trust that you will find your career fulfilling and rewarding. To our students, keep up the good work and good luck with the end of the year exams!