[PPT] - TRANSNET LIMITED PRESENTATION BY MS MARIA RAMOS 27 MAY 2008 AGENDA PowerPoint Presentation

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TRANSNET LIMITED PRESENTATION BY MS MARIA RAMOS 27 MAY 2008

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AGENDA

Achieving business stability

– The four-point turnaround plan – Achievements against plan – Financial performance overview

From stability to growth
Growth opportunities
Growth enablers
Four-point growth strategy
Context

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3 0% 25% 50% 75% 100%

High Income OECD High Income Non-OECD Upper Middle Income Low er Middle Income Low Income

Top Quintile, Highest Performance 2nd Quintile, High Performance 3rd Quintile, Average Performance 4th Quintile, Low Performance Bottom Quintile, Lowest Performance Distribution of countries by income groups across LPI Quintiles (%)

High Income OECD High Income Non- OECD Upper Middle Income Lower Middle Income Low Income

SOUTH AFRICA FREIGHT SYSTEM PERFORMING RELATIVELY WELL

Source: World Bank, Connecting to Compete: Trade Logistics in the Global Economy, October 2007

High income countries are generally top performers but there are big differences between countries at other income levels. South Africa placed 24th out of 150 countries and is the highest ranked middle income country in a list which includes Malaysia (27), Chile (32), Turkey (34) and Hungary (35). Singapore, Netherlands and Germany are the top 3 ranked countries respectively. China (30) is the top performer amongst lower middle income countries. India (39) is the top performer amongst low income countries.

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THE SOUTH AFRICAN FREIGHT SYSTEM MUST NEVERTHELESS CONFRONT MANY CHALLENGES

Large infrastructure backlogs across all modes.
A skills shortage.
A lack of intermodal planning.
As a very transport intensive economy, South Africa contributes less

than 0.5% to the world GDP but more than 2% of surface freight ton/kilometres. South Africa must apply transport far more efficiently than the norm.

Source: Centre for Supply Chain Management, University of Stellenbosch

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TOTAL FREIGHT DEMAND WILL DOUBLE (OR TRIPLE) IN THE NEXT TWENTY YEARS

Source: Centre for Supply Chain Management, University of Stellenbosch

Likely growth based on average 4.7% growth over 20 years, high growth based on average 5.5% over the 20 years

Freight demand in the economy (million tons) 500 1000 1500 2000 2500 2006 2011 2016 2021 2026 million tons Likely growth High growth

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INTEGRATED AND COORDINATED ACTION IS NECCESARY

Implementing a high performance rail corridor backbone for the country that

will alleviate corridor congestion and provide the capacity to meet the long term demand for freight in the economy.

Operating the ports in a complementary manner to make the port system more

efficient, increase maritime connectivity and reduce ocean freight rates.

Formulating and implementing integrated service strategies for key customer

segments to realise the synergies of the port, rail and pipeline systems.

Enhancing the connectivity of the South African freight system with the

regional freight system.

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AGENDA

Achieving business stability

– The four-point turnaround plan – Achievements against plan – Financial performance overview

From stability to growth
Growth opportunities
Growth enablers
Four-point growth strategy
Context

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THE FOUR-POINT TURNAROUND PLAN WAS DEVELOPED TO STABILISE TRANSNET

Enabling economic growth Enabling economic growth Delivering efficient and competitive services Delivering efficient and competitive services

Four-point Turn- around Strategy Redirecting and Reengineering the Business Redirecting and Reengineering the Business Strategic Balance Sheet Management Strategic Balance Sheet Management Ensure Corporate Governance and Risk Management Ensure Corporate Governance and Risk Management Develop Human Capital Develop Human Capital

Growing a focused freight transport company Growing a focused freight transport company Strategic intent Strategic intent Transnet situation in 2004/05:

Lack of clear strategic

direction;

Weak financial

performance and controls;

Unfocussed and inefficient

business structure - significant non-core investments;

Low morale: Lack of

investment in Human Capital;

Poor risk management

and governance; and

Lack of capital

investment. 1 2 3 4

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9 Funding plan

Strategic Balance Sheet Management

Pension funds

TSDBF (R1.9bn) and TPF

(R1.0bn) in surplus

Rule amendments approved
Act amended
Ex-gratia bonuses

Disposal of non-core

assets, including

Viamax
C Pref Share
Housing loan book
SAA
V&A
Transtel FSN
Metrorail

Approximate proceeds +R10bn

SIGNIFICANT ACHIEVEMENTS HAVE BEEN REALISED

Corporate Governance and Risk Management

Established Governance

Structures

Re-direct and Reengineering the Business

Transnet Business

Intelligence

Implementation of

systems/processes to improve quality of information, control and analysis

KPI project

Vulindlela projects to

improve productivity levels

Efficiency improvements
GFB priority flows (+3mt)
Port handling activities

(TEU’s from 158000 to 186000 at DCT)

Availability and reliability
f all wagon and loco

fleets improved

Progress towards
perational stability
Procurement savings

>R500m p.a

Safety: reduced incidents

(R200m) Overall improvement of R2bn since inception in 2005-06

Human Capital Development

Skills demand planning

1 2 3 4

Revised Articles

f Association

Implementation of

Enterprise Performance Management (“EPM”) framework

Focused attention on risk

Safety risk
Implementation of fraud

risk management plan

Compliance risk

Shareholder Compact Gearing

From 83% to 39%

Effective capital approval

Returns exceed cost of

capital

Monthly risk

identification and reporting

Talent management and

succession planning

Change management

programme

Employment equity plan Leadership development

programme

Reward model,

performance management and incentive scheme

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SUBSTANTIAL IMPROVEMENTS IN FINANCIAL PERFORMANCE DEMONSTRATED

Transnet Performance Highlights: Three-Year View Improvement vs 2004 208% R11,7 bn R3,8 bn Capex (excluding Aviation) 278% R37,4 bn R9,9 bn Shareholders equity 53% 39% 83% Gearing 70% 6,8% 4,0% Cash flow return on investment (“CFROI” in real returns) 54% 5,4 times 3,5 times Cash interest cover 139% 40,7% 17% EBITDA (%) 78% R8 470bn R4 750bn Operating profit 2007 Actual 2004 Actual Measures Four-point turnaround plan starting point

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AGENDA

Achieving business stability
From stability to growth

– Shareholder mandate – Transportation in SA – Levers for growth

Growth opportunities
Four-point growth strategy
Growth enablers

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OVERVIEW OF SHAREHOLDER MANDATE

Key role as defined in Shareholder Compact

(Within context of agreed KPIs)

Reduce the cost of doing business in

SA

Embed growth through providing

appropriate ports, rail and pipeline infrastructure

Cost effectiveness and efficiency

within acceptable benchmark standards

Volume growth in the core divisions

Transnet challenges To create capacity, improve efficiencies and grow volumes Retain a strong financial position

AND

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IMPROVED TRANSNET EFFICIENCY SHOULD ALSO REDUCE CUSTOMER LOGISTICS INDIRECT COSTS

42 20 7 19

Mining cost Customs/ Clearing

9

3 Land Transport Handling Storage Sea Freight

1

100 Insurance Total landed cost

Percentage of total delivered cost Storage and sea freight costs strongly influenced by reliability, frequency and speed of land transport

Indirect costs

(e.g. storage and handling) are a significantly higher component of total customer landed cost than direct transport costs

Improved

Transnet reliability and speed should reduce these indirect costs

TYPICAL TRANSNET PRIORITY CUSTOMER

Logistical flow Transnet direct costs

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14 Transformation horizons for a networked organisation

Accelerate Human Capital strategy

implementation

Implement integrated commercial

management

Long-term capacity planning
Focus Vulindlela on integrated,

cross functional corridor rollout (using “standardised” improvements)

Improve cross-divisional capital

projects and financial planning

Implement focussed management

reporting, KPI analysis and Enterprise Performance Management

Best practice CAPEX
Funding strategy
Develop customer services (e.g.

capacity management and supply chain integration products)

Strategic organisational

initiatives

Develop and implement long

term network improvement concepts

Achieve world-class

performance levels

Build long term stakeholder

relationships ‘Stabilise the core’ ‘Optimise and extend growth’ ‘Expand competitive advantage’

Current position

‘Stop the bleeding’

Financial restructuring
New freight strategy and

disposal of non-core assets

Restructure corporate

centre

Create Human Capital

strategy

Risk and governance
Implement critical infrastructure

projects

Launch Vulindlela to stabilise key
perational functions and capture

productivity

Implement critical capability

building

Complete disposals
Shareholder Compact

TRANSFORMATION HORIZONS

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THERE ARE SEVEN MAJOR LEVERS FOR GROWTH

Roll out of Capex plan: Optimal

integration and allocation across divisions

Increase in investment to create

capacity 1

Vulindlela re-engineering initiatives
Productivity/efficiency improvement

2

Safety
Human Capital
Embedding safety culture in organisation

(“ERM”)

Navigator and Group Human Capital

programmes

Key drivers for success Major levers

Integrated commercial management
Customer focus and orientation

3

Integrated commercial management
Sustainable service delivery

4

Volume growth and optimal asset

utilisation

Financial strength and sustainability

5 6 7 Key enablers

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AGENDA

Achieving business stability
From stability to growth
Growth opportunities
Four-point growth strategy
Growth enablers

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ALL ODs HAVE HIGH GROWTH EXPECTATIONS OVER NEXT 5 YEARS

47 30 2006/07 2011/12

+57%

88 67

+31%

108 80

+35% GFB Mv Coal export Mt Ore export Mt Transnet Freight Rail Transnet National Ports Authority /Transnet Ports Terminals Transnet Pipelines

3,400 6,400

+88% 555,000 2006/07 925,000 2011/12 +67% Containers TEUs Auto- mobiles Units

13.9 9.9

2006/07 2011/12 +40% Refined products b.lit

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AGENDA

Achieving business stability
From stability to growth
Growth opportunities
Growth enablers
Four-point growth strategy

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NEW GROWTH STRATEGY IS BASED ON FOUR PILLARS

Reengi- neering – integration, productivity and efficiency Capital

ptimisation

and financial management Safety, risk and effective governance Human capital execution Growth through

Integration in

priority corridors

Efficient asset

utilisation

Planned

maintenance in all divisions

Cost effective

procurement

Shared services
Integrated

capital,

perations, and

financial customer planning

Strategic

asset/liability management

Funding

strategy

Delivery on safety

performance

Complying to the

highest standards

f corporate

governance

Enterprise risk

management (“ERM)

Enterprise

performance management (“EPM”)

Accelerate

implementation

f Human

Capital strategy

Strengthen

values and culture

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AGENDA

Achieving business stability
From stability to growth
Growth opportunities
Four-point growth strategy
Growth enablers
Corridor optimisation
Integrated commercial management
Enterprise performance

management

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21 Rail Infrastructure 30 000 km of track 22 300 route km Network Electrification: – 50kV AC (861km), – 25 kV AC (2309km) – 3kV DC (4935km) Axle loading: – Main lines at 22t / axle – Coal and ore lines 30t / axle (coal line operates at 26 ton) Current Volumes – – Containers: 400 000 TEU’s – Dry bulk: 149 mtpa – Auto: 192 000 units – Liquid: 4.2 mtpa – Break Bulk: 20.9 mtpa Port Infrastructure 9 Commercial Ports 19 container berths 3 automotive terminals 26 dry bulk berths 39 break bulk berths 13 liquid bulk berths Current Volumes –

Containers: 3.82 m

TEU’s

Dry bulk: 129 mtpa
Auto: 540 000 units
Liquid: 40 mtpa
Break Bulk: 13 mtpa

Pipeline Infrastructure Crude line: 580 km

Design Cap = 6,8 bill. l/a
Current Cap = 5,8 bill.l/a

Refined line:725 km

Design cap = 3,5 bill. l/a
Current cap = 4,3 bill. l/a

Avtur: 94 km

Design cap = 1,2 bill. l/a
Current cap = 1,1 bill. l/a

TRANSNET MANAGES AN EXTENSIVE INTEGRATED NETWORK

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TRANSNET EVOLUTION TO A NETWORK BUSINESS

Corporate

Functions

Gain effectiveness
Improve efficiency
Align management and

workforce on business

bjectives
Provide a common transformation

backbone

Set pace and rhythm
Monitor progress
Provide support where needed
Install value adding functions for

all business units

NOC Projects Maintenance Yards Procurement

Divisions

Network

Progress towards the ‘perfect’

asset network

Optimise profits from existing

networks

Offer network related products
Provide optimal capital base for

network evolution

Capture synergies through smart

infrastructure bundling

Touwsrivier Mid Ilovo Plaston Kelso Eshowe Utrecht Hawerklip Naboomspruit Middelwit Vierfontein S i s h e n Saldanha Cape Town East London Port Elizabeth Mosselbaai Bredasdorp Protem Strand Simonstad Stellenbosch Franschhoek Bitterfontein Porterville Atlantis Prins Al fred Hamlet Riversdale Knysna C a l i t z d

r

p George Ladysmith Avontuur Patensie Klipplaat Oudtshoorn Rosmead Kirkwood Alexandria Port Alfred Cookhouse Somerset East Noupoort De Aar Prieska Upington Kakamas Naroegas Worcester Sakrivier Calvinia Hutchinson Kootjieskolk Beaufort West Belmont Douglas Hotazel Warrenton Pudimoe Makwassie Mafikeng Ottosdal Vermaas Schweizer-Reneke K l e r k s d

r

p Orkney Coligny Bultfontein Whites Westleigh Bloemfontein Aliwal North Sannaspos Dreunberg Springfontein Koffiefontein Hofmeyer Schoombee Jamestown Barkley East Maclear Tarkastad Qamata Queenstown Blaney Bethulie Seymour Umtata Fort Beaufort Amabele Maseru Marquard Ladybrand Bethlehem Wolwehoek Lichtenburg Warden Harrismith Bergville Kokstad Matatiele Harding Port Shepstone Durban Kranskop Richmond Underberg Stanger Nkwalini Richards Bay Vryheid Hlobane Moorleigh Ladysmith Roossenekal Steelpoort Graskop Machadodorp Belfast Lothair Komatipoort Baberton Phalaborwa Messina L

u

i s T r i c h a r d t Soekmekaar Zebediela Vaalwater Nylstroom J’burg Pretoria O/ fontein E l l i s r a s Northam Charlestown Vrede Potchestroom Empangeni Donnybrook Greytown Franklin Kimberley Marble Hall Standerton Bethal B / p l a a s Simuma Mandonela Winburg Theunisen Chroomvallei Drummondlea Virginia Glen H Hilton Copperton C u l l i n a n R a y t

n

Ui t enhage K l a w e r T h a b a z i m b i P i e t e r s b u r g B e i t B r i d g e H

w

i c k N a k

p

Postmasburg E r t s Manganore Pal ingpan Rustenburg Hoedspruit Glencoe Newcastle A r l i n g t

n

Witbank Ogies Breyten Krugersdorp Welverdiend S e n t r a r a n d Welgedag K r

n

s t a d G

l

e l a Ancona

Deliver high performing

elements

Deliver 100% at interfaces
Provide necessary capacity
Optimise growth opportunities

across all operating divisions (rail, port and pipeline)

Capture operational and functional

synergies across business units – integrated solutions

Sentrarand DCT Port Newcastle Durban Yard Depot Danskraal Kaserne

Corridors

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Springfontein Klerksdorp Estcourt Bethlehem Volksrust Makwassie Orkney Welverdiend Theunisen Richmond Uitenhage Thabazimbi Witbank Rayton Port Shepstone Oudtshoorn Postmasburg Bethal Roossenekal Polokwane Cato Ridge Touwsrivier Naboomspruit Sishen Saldanha Cape Town East London Port Elizabeth Mosselbaai Bredasdorp Bitterfontein Kraaifontein Knysna Patensie Klipplaat Rosmead New Brighton Port Alfred Somerset East Noupoort De Aar Prieska Upington Kakamas Worcester Hutchinson Beaufort West Belmont Hotazel Warrenton Pudimoe Mafikeng Coligny Bloemfontein Aliwal North Dreunberg Koffiefontein Stormberg Barkly East Blaney Umtata Fort Beaufort Maseru Sasolburg Lichtenburg Harrismith Bergville Harding Durban Underberg Stanger Richards Bay Vryheid Ladysmith Graskop Machadodorp Belfast Komatipoort Phalaborwa Messina Louis Trichardt Soekmekaar Nylstroom Pretoria Ellisras Northam Empangeni Kimberley Copperton Beit Bridge Pietermaritzburg Nakop Erts Rustenburg Hoedspruit Glencoe Ogies Krugersdorp Golela Queenstown Kroonstad Newcastle Sentrarand Bellville Liebendal Kalbaskraal Boksputs Calvinia Vryburg Ottosdal Vermaas Ermelo Atlantis George Avontuur Sannaspos Pyramid South Marble Hall Pienaarsrivier Steelpoort Vereeniging Danskraal Cedara Kokstad Piet Retief Delmas Balfour NelspruitKaapmuiden Tzaneen Pretoria- North Pendoring Macmullins Magaliesburg Marseilles Gunhill Burgersdorp Sterkstroom Stutterheim Maclear Cradock Cookhouse Alicedale Dal Josafat J’burg

Current organisational structure;
Current maintenance depot

distribution;

Current distribution of hub and

depot nodes;

Limited overlap and clear

boundaries and ‘gate nodes’;

Important commodity flows and

customer flows (including Growth); and

Preserve technical and natural

geographic boundaries and internodal distances.

14 CORRIDORS HAVE BEEN DEFINED

Northcor Capecor Southcor Natalcor R.Baycor N.Westcor Eastcor N.Eastcor Sishen-Saldanha Sentracor South East Cor Westcor Freestate Namibia Corridor definition principles

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Corridor Rail volume handled** Mt handled FY07

RBayCor Sishen-Saldanha CapeCor Sentra hub NatCor Freestate EastCor NorthCor NWestCor SouthCor WestCor NEastCor SEastCor NamibiaCor

0.7 4.1 3.7 4.2 9.0

95.5 39.6 18.8 40.1 17.2 15.1 17.1 13.2 ~ 0

Port volume Mt, FY07 2 10 61 10 40 83 (Richards Bay) (Saldanha) (Cape Town) (Durban* * * ) (Port Elizabeth* ) (East London)

* Includes Mossel Bay, ** Multiple counts of volumes due to travel on multiple corridors, *** 25 Mt liquid bulk included

TRANSNET’S ACTIVITIES ARE CONCENTRATED MAINLY IN FOUR PORTS, FIVE LAND CORRIDORS . . .

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Sishen- Saldanha CapeCor SentraCor NatCor RBay Cor All others

. . . AND SIX COMMODITIES. THE STRATEGY THUS FOCUSES ON THESE BUSINESS AREAS

95% of the rail flows

in the critical commodities on 5 corridors

GFB 75% of total

Transnet Freight Rail revenue

4 53 10 16 13 41 21 12 5 32 33 27 24 16 31

Manganese 5 1 Coal domestic Containers 13 41 Automotive and industrial

2 Other GFB

1 Coal export line 97

1 Iron ore export line

1 2 3 4 5 6

Percent of corridor revenue

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THERE IS AN OPPORTUNITY TO INCREASE RAIL SHARE OF PORT VOLUME THROUGH INTEGRATION

Port Current volume (Mt, FY07) Current volume on rail (Mt) Rail share (%) 2 83 Richards Bay 61 Durban 40 Saldanha* 10 Port Elizabeth** 10 Cape Town East London 1 3 4 83 10 33 100 31 15 38 93 40

* Includes 6Mt of trans-shipped volume

** Includes Mossel Bay (1.8Mt)

The Natcor

ffers the

biggest

pportunity

for share capture

PRELIMINARY

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Majority of demand is rail friendly
Natcor, CapeCor, Ore Line, Coal Line and Port Elizabeth to Hotazel

line will require capacity improvements (balance of the network has capacity for at least 10 years)

Complementary ports system to provide a range of facilities to meet

local and hinterland

Rail linkages between adjacent ports and Gauteng
Container terminal R3.8bn
MPT refurbishment

R0.3bn

Other R0.5bn

Port Elizabeth East London Maputo Sishen

Road/rail volume

Richards Bay Durban Saldanha Cape Town

Ore Line R3.6bn
Ngqura construction R0.7bn and

container terminal R5.1bn

General Freight R1.0bn
Manganese R0.5bn
Automotive R0.2bn
Other R0.9bn
Container terminals R7.2bn
Island View and Agriport R0.7bn
Maydon Wharf R1.6bn
Automotive R0.3bn
General Freight R0.9bn
Bulk liquids (NMPP) R13.5bn

creating R 12bn

Other R4.6bn
Coal Expansion R6.6bn
Dry bulk terminal R1.6bn
Multi-purpose terminal R0.6bn
Other R0.8bn

R0.2bn - General Freight

Other national/countrywide

investments

General Freight R25.6bn
Rail Engineering R2.3bn
Other R2.2bn

2006 2021 16.4 46.1 80.6 119.4 43.3 109.3

12.0 29.4

35.9 63

NATIONAL INFRASTRUCTURE PLAN IS ALIGNED WITH THE STRATEGY*

* Excluding funding costs 30.1 92

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CAPEX PLAN I S ALI GNED WI TH GROWTH OPPORTUNI TI ES

26.2 4.8 16.2 3.7 84.0 40.3 6.6 26.0 12.0

Fund- ing Ports Pipe- lines Supp-

rting

Svcs Coal Total 3.2 Bulk 3.0

2.7

Ore GFB Other TFR 2.0 Break- bulk 0.4 Auto 3.2 Other Cont- ainers R80.3m

11 mtpa 18 mtpa 64.2 mtpa 3.77 mTEU 7.2 mtpa 180k Units 3m m3 3.6b litre pa

5yr Capex, Rb

Incremental capacity

AND CAPEX IS ALIGNED TO GROWTH OPPORTUNITIES

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IN CONCLUSION…

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PROMOTING A WINNING CULTURE AT TRANSNET

We have done well – key aspects of the turnaround strategy have been

achieved

The next phase of growth is about volumes and about delivering on our

commitments to customers

More than ever, it depends on how our people perform – this requires

promoting a winning culture at Transnet

We need to focus on driving a winning culture in Transnet, and we have a plan

to involve all our employees in this process

Growth can only be achieved through people Performance can only be driven by individual behaviors Collectively our individual behaviors drive team performance and defines the organisational culture

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LEADERSHIP CHALLENGE IN MOVING FROM TURNAROUND TO GROWTH

GROWTH TURNAROUND

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32 Recognise, capture, affirm, reward behaviours Involve staff in defining desired culture and optimise buy-in Regularly assess and make transparent how we are doing Lead by example, train, coach, codify, give feedback, inspire Embed it in systems and processes, induct into it, measure it, teach it Affirm it where it exists 1 1 Name it and sign up 2 2 Track it 3 3 Replicate it 4 4 Institutionalise it 5 5

OUR APPROACH TO DRIVING CULTURE CHANGE

Our approach has been unique, a truly inclusive process that allows all employees to shape our culture

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We would fulfil our brand promise and our customers prefer us because we are:

Reliable
Responsive
Trustworthy
Safe
Preferred

…TRANSNET PEOPLE WOULD… IF TRANSNET WERE WINNING…

People brand and culture charter We deliver on our mission and brand prom ise because we demonstrate these behaviours and attributes: We…

The departure point is the wheel that also underpins the new Transnet brand
The culture charter will populate the right hand side of the wheel
It will comprise an agreed set of behaviours and attributes that are needed to deliver on the

vision/mission and brand promise of Transnet

We would be adding value to our shareholders and society because we: “deliver a freight transport system that promotes national competitiveness and economic growth by increasing our market share, pricing competitively and providing efficient,, safe and reliable services”

CULTURE CHARTER FRAMEWORK

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INPUTS HAVE EXCEEDED ALL EXPECTATIONS

PROGRESS TO DATE KEY ACHI EVEMENTS Input gathering

Mobilised the organisation through shop stewards,

human resources practioners and culture champions to collect inputs from staff to shape ballot GCE Site Visits

GCE conducted site visits to 6 key sites to engage

and mobilise employees on the culture charter process prior to voting week in Saldanha, Bloem, RB, Dbn, CT, Sentrarand Voting Week Supported by

GCE Broadcast to 90 broadcast sites
Communication blitz teams
160 Primary voting stations
f critical stakeholders

Engaged with close to 7000 employees Over 43 000 Ballots Collected Collected over 17000 inputs

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THE BALLOT FROM WHICH STAFF SHAPED THE TRANSNET CULTURE

Adaptable and flexible Business focused Community and social responsibility Compliant to policies and procedures Customers first/ Service excellence Effective management A safety mindset Equal opportunities/fairness/ consistency Going the extra mile Good communication Good working environment and conditions Happy staff Having the right tools/ equipment & uniforms Honesty, integrity & transparency Dedication & commitment Enough people to get the job done Dignity & respect Consultation with staff/ Inclusive & participative Delivering on our promises Knowing what is expected of me On time Operational efficiencies Pay for performance Preparing and planning Seeking solutions/ Acing to solve problems Innovation & creativity Staff support & care Teamwork/ aligned people Training & development Understand the needs of our clients Protecting and respecting our assets Skilled & proficient Responsible & Accountable Positive attitudes Recognition & acknowledgement Transfer of skills internally Winning and united culture & vision

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KEY OBSERVATIONS FROM PROCESS THUS FAR

Employees are ready and hungry for opportunities to be heard

and participate in change

There is a positive spirit and energy surrounding the new “one-

company, one vision” winning Transnet brand

Employee responses indicate business focus and a good

understanding of business needs.

High level of participation in the culture charter bodes well for

the credibility and efficacy of the process

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37 Effective governance and mitigation of key risks

THIS STRATEGY WILL ADVANCE TRANSNET’S TRANSFORMATION INTO A WORLD-CLASS TRANSPORTATION, INFRASTRUCTURE AND LOGISTICS COMPANY

1 Optimal capital investment without compromising reliability of infrastructure and capacity. 2 Planning and coordination along the corridor value chain, across geographies, functions and divisions. Informed, empowered and fit-for-the job workforce. 3

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