South African logistics group, Transnet, has an ambitious R300bn infrastructure development plan that will significantly reduce the cost of doing business in South Africa and the rest of Africa. 

The chief executive of Transnet Rail Engineering, Richard Vallihu, elaborates on the growth plans for TRE over the coming years.

What is the scope of Transnet Rail Engineering’s business activities?

Transnet Rail Engineering has four customer-facing businesses, with five internal support operational businesses:

•  Locomotive business: does heavy refurbishment, general overhauls, upgrades, manufacturing, maintenance and assembly of various types of locomotives
•  Wagon business: provides heavy maintenance, general overhauls, modifications, upgrades, maintenance and new builds. TRE is an original equipment manufacturer (OEM) of wagons
•  Coach business: performs heavy maintenance of coaches, general overhauls, modifications and upgrades
•  Port and terminal business: the ports business is not a new business as TRE has been maintaining and manufacturing straddle carriers for Transnet Port Terminal (TPT). The ports business is now positioned to maintain all ports and terminal equipment and machinery. The long-term view is to get this business involved in assembly of all new port equipment

The internal support operational businesses are:

•  Rotating machines: refurbishes and maintains all the rotating components that you will find in rolling stock, such as traction motors. This business is now involved in the assembly of new traction motors for the 43 class locomotives
•  Rolling stock equipment: manufactures and maintains all the different components required in the refurbishment activities of TRE
•  Wheel business: the assembly of new wheels as well as the refurbishment and maintenance of the existing fleet of wheels
•  Foundry: TRE has two foundries in Pretoria and Bloemfontein. They manufacture castings to support the refurbishment program of TRE
•  Auxiliary business: manufacturing and maintenance of tarpaulins, and the maintenance of containers  

What are some of the projects that TRE has been/is involved in the rest of Africa?

The strategy is to continue to grow this market and expand TRE’s footprint in the continent, since we have responded to various tenders in the SADC region and West Africa.

TRE has been recently involved in the manufacturing of 200 wagons for Rio Tinto to transport coal in Mozambique. We are currently commencing the production of 160 salt wagons for Botswana. We have conducted work in Namibia, Botswana, Angola over the years, and in many other countries in Africa.

What is the focus of the new Ports Business?

Ports Business focuses on manufacturing and maintenance of ports equipment. In the midterm, it plans to assemble/build new port equipment. While the focus is on South African ports, there are great opportunities in ports beyond our borders. As part of our Africa strategy, we intend to grow this business by exploiting the opportunities beyond South Africa. 

TRE plans to extend its partnerships with Original Equipment Manufacturers (OEM). How do you plan to do that?

TRE has aspirations to be an original rolling stock manufacturer. The strategy is to leverage on the current massive investments in freight and passenger rolling stock. We believe that these investment programmes provide a launching pad to accelerate the development of our capability and bring us closer to our ultimate goal to be an OEM.  In some instances, it might mean specific OEM partnerships to advance our OEM objectives.

How does Transnet ensure that it is able to recruit appropriately trained and skilled people for all of its engineering projects?

TRE has over the years invested in the development of key critical skills for the growth and sustainability of the business. The strategy that the business adopted, among others, was to create a technical feeder channel by offering full-time bursaries to students studying in the field of engineering. When these graduates qualify, TRE provides them with work experience through a structured programme that includes intensive training, development and support to grow them into a position/role within the organisation, and fast-track their inclusion into a talent pool and ultimately to key positions within the organisation.

Currently, we are training and developing 2 500 students in our 18 training centres around the country.

TRE also has a strategy of growing a collaborative network with institutions of further and higher learning in the fields of Science and Technology, from which newly qualified graduates are recruited into the Graduate or Engineers in Training Programme for 18 months to two years. TRE uses the national media to advertise whenever a new intake of students is required for Student Bursary Scheme. This happens approximately twice a year.

In cases where there is no ready candidate that can be placed into a specialised engineering role to manage some of the strategic engineering projects for the business, we recruit externally experienced engineers using structured competency assessments or evaluation techniques.

During Richard’s 17 years with Transnet, he has held various positions in Information Communication Technology, Business Development, as well as General Manager Strategy and Marketing, before taking up his position as the Chief Executive of Transnet Rail Engineering. He is also an Executive Committee member of Transnet. Richard graduated with a BSc Honours Degree from University of Loughborough in UK and a Masters in Business Administration (MBA) from the University of Southern Queensland (USQ), Australia.

Contact details

Email: sales@transnet.net   
Tel:+27 12 391 1304
Fax:+27 12 391 1371
Website: www.transnet.net

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