Abstract
Transnet SOC Ltd is the sole bulk freight logistics rail company in South Africa and is responsible for the movement of general freight and commodities. Transnet Capital Projects (TCP), a division of Transnet SOC Ltd, acts as a service provider to all the operating divisions of Transnet, including the biggest division, Transnet Freight Rail (TFR), which operates and maintains Transnet’s railways countrywide.
Transnet’s strategy, the Market Demand Strategy (MDS), will see Transnet’s revenue grow from R46bn in 2011/12 to R128bn in 2018/19 through an intensive infrastructure expansion programme. The successful execution of TCP rail projects and subsequent delivery of the MDS is a concern due to the fact that South Africa’s current freight logistics costs are significantly higher than elsewhere in the world when considered on a cost per ton-kilometre basis (Havenga & Simpson, 2013). Furthermore, between 2005 and 2011, 55% of all major rail projects in Transnet failed (Xaba, 2011). A number of challenges arose during the execution of TCP rail projects. These pertained particularly to project integration management, that is, the various entities often worked in silos and failed to make the necessary effort to achieve project integration.
The purpose of the current research is to determine Transnet’s deficiencies and recommend solutions based on project management best practice in the field of railway engineering. Having considered the successful execution of similar rail projects worldwide, the current research examines ways in which the reliability of rail projects within TCP could be increased. This is undertaken through the use of a questionnaire that was designed based on lessons learnt from railway projects around the world. The questionnaire aimed to determine the most critical deficiencies in TCP rail projects which would in turn, if dealt with, lead to the greatest levels of improvement in the reliability of rail projects in TCP.
The research findings identify issues at various levels within Transnet, including issues regarding people as well as structural and technological issues. Key recommendations of this study include changing the organisational structure of the TCP, the recruitment of rail experts, enhancement of project management skill, the introduction of new railway software and the establishment of an Enterprise Project Management Office.
M.Ing. (Engineering Management)