At the recent Africa Rail event, a pivotal discussion took place between Colette Yende, Chief Procurement Officer at Transnet Engineering, and Phillippa Dean, Editor of Railways Africa Magazine, regarding the company’s evolving procurement strategies essential for operational recovery. This dialogue, coming on the heels of the Transnet Engineering Industry Day, underscored how procurement is becoming a cornerstone in restoring locomotive availability and rebuilding industry trust as South Africa endeavours to modernise its rail infrastructure.
Yende articulated a comprehensive vision for Transnet Engineering’s procurement strategy, highlighting not only its alignment with the national recovery plan but also the importance of demand management and supplier engagement. As the company faces the dual challenge of addressing existing inefficiencies while unfolding new partnerships, Yende asserted the urgent need for industry collaboration. “We’re not just tendering—we want solutions. Bring your products, bring your support. I can’t do this alone,” she emphasised, calling on private sector players to contribute actively.
This appeal comes at a critical moment, as Transnet has also embarked on a procurement digitisation journey aimed at optimising processes. An issued request for proposals seeks an automated end-to-end procurement system that promises to mitigate common inefficiencies—such as long lead times and increased governance risks—by reducing human oversight. This strategic pivot is part of Transnet’s broader transformation into a data-driven and customer-centric organisation.
Further reinforcing this shift, Transnet Engineering has secured contracts that highlight its manufacturing capabilities. Notably, in June 2023, a significant contract was sealed with SWALA International Logistics from the Democratic Republic of Congo (DRC) for 80 freight wagons. The partnership is poised to enhance SWALA’s operational capabilities along the SNCC railway line, illustrating how Transnet is not only recovering but also expanding its influence in the Southern African Development Community (SADC) region.
In addition to these developments, Transnet Engineering plans to establish a dedicated rolling stock leasing company, Transnet LeaseCo. This initiative responds to demand from private operators seeking to enhance their capacities. By creating this new venture, Transnet aims to leverage its expertise in building and maintaining rolling stock while fostering long-term business relationships.
Amid these advancements, the overarching narrative within South Africa’s procurement landscape remains one of accountability and transformation. At a recent infrastructure conference, experts underscored the necessity of transparency and effective project planning to unlock the full potential of procurement processes. This sentiment resonates with Yende’s vision of creating space for innovation and direct product engagement.
Additionally, Transnet is preparing for a landmark shift expected in 2024 with the establishment of an interim infrastructure manager. This development is crucial for opening the rail network to third parties, which is anticipated to enhance competition and efficiency in the sector. The estimated cost of restoring the network to operational standards is about R31 billion, a clear indicator of the substantial investment needed for a comprehensive overhaul.
As these initiatives unfold, the call for robust partnerships becomes increasingly vital. The journey towards procurement reform at Transnet Engineering not only illustrates the challenges faced but also presents opportunities for stakeholders to engage in a transformative process critical for the future of South Africa’s rail infrastructure.
This conversation, encapsulating both challenges and innovations in procurement, underscores the pathway towards a revitalised rail network, aiming to enhance connectivity and service delivery across the region.
Reference Map
- Railways Africa report on the Africa Rail event and interview with Colette Yende.
- Details of contract secured by Transnet Engineering with SWALA International Logistics.
- Summary of Transnet’s procurement digitisation efforts.
- Information on plans for Transnet LeaseCo.
- Insights from the Consulting Engineers South Africa Annual Infrastructure Indaba.
- Overview of Transnet’s establishment of an interim infrastructure manager.
Source: Noah Wire Services
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