Transnet Online Integrated Report 2018

Market Demand Strategy (MDS) themes
  • Financial sustainability
  • Capacity creation and maintenance
  • Market segment competitiveness
  • Operational excellence
  • Human capital
  • Organisational readiness
  • Sound governance and ethics
  • Constructive stakeholder relations
  • Sustainable developmental outcomes
Sustainable Developmental Outcomes (SDOs)
  • Employment
  • Skills development
  • Industrial capability building
  • Investment leveraged
  • Regional integration
  • Transformation
  • Health and safety
  • Community development
  • Environmental stewardship
The Capitals
  • Financial Capital
  • Manufactured Capital
  • Intellectual Capital
  • Human Capital
  • Social and Relationship Capital

Creating value through the capitals

Intellectual capital

Through our intellectual capital (e.g. intellectual property in the form of patents, copyrights and licences) and organisational capital (e.g. our tacit knowledge in the form of procedures and knowledge-based systems of governance, compliance and leadership), we create both tangible (monetised) value in the form of revenue from value-add services and new product innovations, and intangible (non-monetised) value in the form of brand value and thought leadership.

Intellectual capital

1. Inputs
  • Research and development (Engineering) – Research
  • Standard operating procedures – Procedures
  • Policies, frameworks and processes – Frameworks
  • Responsible leadership principles and practices – Leadership
2. Approaches to managing intellectual capital outcomes
  • Research and development > emerging digital technologies as a key enabler of innovation – ‘Digital Tansnet’
  • Attract and retain key skills > enable our strategy and add value through innovation
  • Create customer-centric business solutions > enhance customer relationship management and business intelligence
  • Partner with academic institutions > empower growth-oriented entrepreneurs (business education and mentorship)
  • Ensure protection of intellectual capital > copyrights and patents

Ensure protection of intellectual capital
3. Key factors impacting intellectual capital
  • Rapid decline in revenue from traditional markets > invest heavily in achieving OEM status in passenger trains (Engineering)
  • Large investments remain critical in research and business intelligence development > increase revenue in niche markets
4. Intellectual value created
  • Engineering (internationally acclaimed OEM of freight wagons) > our research and innovation hub – expanding its offerings to narrow-gauge operators worldwide
  • Our investment in research and development > leads to an expanding range of rolling stock products designed to suit various area-specific conditions
5. Trade-offs – Intellectual capital impactss on other capitals

Learning from the traction motor prototype > used to manufacture full-scale prototypes

  • Manufactured
  • New infrastructure
    Building and
    selling new
    product lines
    Develop learning
    and innovation
    Employ more
    skills as
    production grows
    Decreased Increased

The Condition Monitoring System (CMS) > tracks stationary and mobile assets

  • Manufactured
  • improved
    maintenance of
    on repair and

Our real-time Advanced Data Analytics and Machine Learning platform (IRIS) > enables predictive maintenance, which improves reliability and productivity

  • Manufactured
  • new
    new products and services + new revenue streams
    new skills
    and innovation
    gains as world-class
    rolling stock OEM

Operate as a multi-faceted, manufacture-driven, serviceled Company in the 4th Industrial Revolution > some current technical skills may become obsolete, while other yet unknown competencies will be required

Some existing skills may be replaced by technological innovations > balance our requirement for specialist technical advancements, and our mandate to create and sustain broadbased employment for the Company and the wider economy > maintain this balance by investing in upskilling of people and appropriate redeployment of skills

6. Key outputs
  • Transnet’s first in-house designed traction motor
  • Transnet’s first in-house designed CMS using satellite, 3G, WiFi and GPS for real-time condition monitoring of stationary and mobile assets
  • Transnet’s first in-house designed IRIS
  • Transnet’s first standard gauge wagon bogie – currently undergoing manufacturing
  • Transnet’s own port hauler, which is a truck-like vehicle for the ports
  • Deployed an in-house developed commissioning tool for locomotives (TransAfrica Locomotive) – an application to connect to Transnet’s in-house designed control system for advanced diagnostics and monitoring