Transnet has six Operating Business Divisions
- Transnet Freight Rail (formerly Spoornet – the freight rail division) – This division is our client
- Transnet Rail Engineering - the rolling stock maintenance business
- Transnet National Ports Authority - fulfils the landlord function for South Africa’s port system
- Transnet Port Terminals - managing port and cargo terminal operations in the nation’s leading ports
- Transnet Pipelines - the fuel and gas pipeline business, pumps and manages the storage of petroleum and gas products through its network of high-pressure, long distance pipelines
Spoornet has its core competency on the transportation of freight, containers and mainline passengers on rail. The company maintains an extensive rail network across South Africa that connects with other rail networks in Africa, with its rail infrastructure representing about 80% of Afric's total. The company is has presence in 17 countries in Africa. Spoornet recorded operating revenue of ZAR 1 bn in 2006.
Financials: Transnet is investing ZAR 78 billion on revitalizing and extending its infrastructure (widening and deepening ports; building a new pipeline and buying hundreds of new locomotives) over the next five years. Spoornet will inject capital investment to the value of ZAR 14 billion by 2010. Ninety percent of the expenditure is allocated to the rehabilitation and renewal program for infrastructure, locomotives and wagons.
Spoornet Businesses Verticals
- GFB Commercial: Accounts 70% of Transnet income. It manages the flow of material and information between suppliers and customers.
- COALlink: It is one of the world's most efficient bulk export logistic supply chains. Coal is a vital export commodity, generating billions of ZAR in foreign exchange earnings for South Africa .
- Orex: Dealing with the transport of iron ore over the 861km railway line. It transports more than 22 million tons a year.
- Luxrail: World-famous Blue Train, which caters for a growing international tourist market of SA. Crossing South Africa 's landscape along four routes, these trains combine the comfort and luxury of a five-star hotel.
- Shosholoza Meyl: Inter-city passenger rail services to and from South African destinations. Approximately four million passengers a year use Shosholoza Meyl services.
What do they transport?
- Automotive: They have specialized car wagons, particularly suited to the safe and secure conveyance of high-value automotives. Primary customers are the original equipment manufacturers (OEMs) in the automotive industry. Some of them include BMW, GMSA and Volkswagen, Ford Group, Nissan
- Containers: The containerized freight market include import traffic, export traffic, and domestic traffic. They offer services in all three. Also offer services like physical and administrative checks, conveyances from and to interchanges zone at the terminal, Stacking/de-stacking, storage, etc. They have six major inland terminals and nineteen satellite depots that are strategically located to link with the ports in South Africa. They track movement of freight by satellite systems.
- Cement and lime: In South Africa, Cement industry is forecasting growth of between 8 and 10% in the next five years due to the 2010 soccer finals. There are four major cement producers producing in excess of 10 million tons per year. They compete in other Southern African markets. Transnet has specialized types of wagons for this industry; Open wagons for bulk raw materials, specialized open wagons for palletized bagged cement, tanker fleet for bulk cement and lime.
- Agriculture Fast Moving Consumer Goods: The commodities here include Sugar, Beer, Malt and barley, Fruit and Wine and spirits. The raw commodities are conveyed from rural areas to ports for export or to processing plants in industrial regions. Processed foods are distributed nation-wide, or sent to the various harbors for export.
- Fuel: Africa plays an important role in world oil markets, with its huge potential reserves off its eastern, southern and western coastlines. Transnet has capacity to move large volumes in excess of 4 000 tons per dedicated train-load. They have dedicated jet fuel train that runs from Durban to Johannesburg International Airport on daily basis. Commodities here are Petrol, Diesel, Jet fuel, Paraffin, Liquid petroleum gas (LPG) and Heavy furnace oil.
- Chemicals: They have tankers that are highly specialized to transport hazardous and non-hazardous chemicals.
- Fertilizer: The industry value to the SA economy is estimated at about ZAR 20 billion per year, contributing about 2% to the country's GDP. The industry is a major earner of foreign exchange for the country at about ZAR 2.1 billion annually. Transnet Freight Rail enjoys a market share of 78.27%.
- Chrome and Manganese: South Africa is the world's largest integrated ferrochrome producing country. Up to 80% of the world's known chrome ore reserves are in Southern Africa. Chrome is second to gold in terms of foreign exchange earnings. The average annual growth rate potential is 5%, directly linked to the growth in the stainless steel industry.
- Granite: About 600 000 to 800 000 tons of South African granite is conveyed annually to Durban, Cape Town and Richards Bay for export to the Far East and Europe. The bulk of South African granite, about 86%, is exported.
