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

Natural capital

Our business is conducted across diverse ecosystems where we build and maintain infrastructure, operate equipment and handle large volumes of cargo. Our employees, contractors, suppliers and customers have an impact on the natural environment and depend on it for their livelihoods. The ‘natural capitals’ in the context of our commercial activities include air, water, land, minerals and forests, as well as biodiversity and ecosystems health. Our operations generate waste, including greenhouse gases, which in turn contribute to global warming.

Natural capital

1. Inputs
  • Air
  • Water
  • Land
  • Minerals
  • Forests
  • Biodiversity and ecosystems health
2. Approaches to managing natural capital outcomes
  • A bilateral relationship with the Department of Environmental Affairs > facilitates environmental authorisations and closure of significant environmental incidents
  • Monitoring and evaluation
  • ‘Mainstreaming’ biodiversity management into the business through policies, processes and procedures in our long-term planning
Approaches to managing natural capital outcomes
3. Key factors impacting natural capital
  • Biodiversity: Mitigate, as far as possible, the adverse impacts of operations on surrounding biodiversity. Where viable, we seek to restore the environment and natural habitats
  • Extreme weather conditions: Flash floods lead to washaways and mudslides on major routes > can increase the severity of rail safety-related incidents (resulting in derailments, asset losses and even employee fatalities)
4. Natural capital value created
  • Energy and carbon management is Transnet’s primary focus in its environmental stewardship > the Company has realised significant gains in energy efficiency and reduced carbon emissions in recent years
  • Accelerating the modal shift from road to rail is a flagship carbon mitigation programme for South Africa > as owner and operator of the country’s rail freight network, Transnet commits to increasing rail market share to 35% by 2019, and to demonstrate the carbon emissions savings achieved annually through its growing market share
  • Transnet seeks to mitigate impacts on biodiversity arising from operations > where possible, restore the environment and natural habitats
  • Transnet’s water stewardship initiatives form part of project planning in water-sensitive biospheres
  • Transnet reduces energy costs through more efficient energy consumption > positively impacts financial sustainability
5. Trade-offs – Natural capital impacts on other capitals

Natural biospheres and natural resources used in operations

  • Natural
  • inputs into operations
    income from
    operations and
    infrastructure usage
    Decreased Increased

Training and development > build competencies and collective values around safety, operational excellence and innovation

  • Manufactured
  • infrastructure negatively
    impacted by adverse
    weather conditions
    cost of maintenance
    and repairs

Severe drought adversely affects bulk export commodities (e.g. grain), which negatively impacts volume performance and associated revenue

  • Financial
  • volumes and revenue
    negatively impacted
6. Key outputs
  • Some of our operations have already achieved certification in terms of the EMS ISO 14001:2015 and ISO 14001:2004
  • Energy consumption (2018: Increased by 2,9% from 2017)
  • Energy efficiency improved by 0,9% compared to prior year
  • Freight rail traction (constitutes >70% of total Company power consumption)
    Electrical traction energy efficiency decreased by 1,4% Diesel traction achieved 2,6% energy-efficiency gain compared to prior year
  • Energy generated by new locomotives 262 016 MWh
  • Asbestos Remediation and Rehabilitation: 929,88 tons of asbestos removed
  • Used oil reclamation: 202 Kl used oil sold
  • Waste recycling (Inyanda Precinct): 87,7 tons of waste recycled
  • Galley Waste Management (Port of Durban): 213,59 tons galley waste removed
  • Recycled Waste Management: 33 628 tons removed
  • Port Terminals Waste Management: 2 872 tons waste removed