Transnet Online Integrated Report 2017
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

Organisational overview

Our Vision, Mission and Values

Our Vision

To meet customer demand for reliable freight transport and handling services by:

Fully integrating and maximising the use of our unique set of assets;
Continuously driving efficiency improvements;
and Demonstrating concern for sustainability in everything we do.

Our mission

To enable the competitiveness, growth and development of the South African economy by delivering reliable freight transport and handling services that satisfy customer demand.

Values

  • We have a safety mindset.
  • We have good communication.
  • We treat each other with dignity and respect.
  • We are empowered to perform our jobs.
  • We are business focused.
  • We recognise and reward good work.
  • We deliver on our promises.
Our mandate

Assist in lowering the cost of doing business in South Africa;

Enable economic growth; and

Ensure security of supply by providing appropriate port, rail and pipelines infrastructure in a cost-effective and efficient manner, within acceptable benchmarks.

Transnet’s mandate and strategic objectives are aligned with national plans and the Statement of Strategic Intent issued by the Minister of Public Enterprises.

Governance context

Transnet SOC Ltd is a public company, constituted in terms of the Legal Succession Act of 1989, with the South African Government being its sole Shareholder.

Owner of South Africa’s railway, ports and pipelines infrastructure.

The Company’s Memorandum of Incorporation (MoI) is aligned with the provisions of the Public Finance Management Act (PFMA), the Companies Act, and the National Ports Act, No 12 of 2005, as amended (the National Ports Act). The MoI was approved by the Shareholder Minister on 25 June 2013. As a State-owned company (SOC), the PFMA serves as Transnet’s primary legislation.

Transnet enters into an annual Shareholder’s Compact with the Government of the Republic of South Africa, represented by the Minister of Public Enterprises.

The Shareholder’s Compact mandates the Company to deliver on numerous strategic deliverables, including sustainable economic, social and environmental outcomes.

The Board of Directors adopted the Market Demand Strategy (MDS) in response to the Statement of Strategic Intent (SSI).

Employee profile
Broad-Based Black Economic Empowerment (B-BBEE)

Transnet’s B-BBEE verification covers six of the seven elements of the Generic Transport Public Sector Scorecard (excluding the ownership element). The Maritime, Property and Rail Charters are also applied.

Transnet achieved the full points for enterprise development and socio-economic development for the 2017 financial year. We are committed to optimising our contribution to B-BBEE in the execution of our mandate and aim to be an exemplary SOC through the maximisation of our contribution to economic transformation, and by demonstrating innovation in this area. Accordingly, strategies are in place to address and maximise the scores for employment equity, preferential procurement and skills development.

Transnet’s supply chain

Transnet’s integrated Supply Chain Management (iSCM) function delivers economic value to the Company and provides broader strategic value to the Government of South Africa. It optimises inbound supply-chain activities, which in turn enable efficient and reliable outbound services to the end customer.

Transnet’s iSCM aligns with the MDS to achieve Platinum Standard levels by capacitating underresourced departments, standardising performance management reporting and providing automated end-to-end procurement business processes to enhance contract management.

Enterprise and supplier development (ESD)

Transnet’s Supplier Development Programme is guided by Government’s Competitive Supplier Development Programme. Our ESD Programme is informed by the B-BBEE Codes of Good Practice.

Transnet’s ESD function aims to increase the competitiveness, capacity and capability of black-owned suppliers through financial and non-financial support services. The ESD department transforms the Company’s supplier base through targeted ESD initiatives that support localisation and industrialisation, and provide opportunities for black people, youth, women, small businesses, people with disabilities and people living in rural communities.

Transnet's Group B-BBEE performance per pillar for the 2017 review period
Element Actual score Target
Equity ownership N/A N/A
Management control 8,33 11
Employment equity 13,59 18
Skills development 22,28 25
Preferential procurement 26,11 33
Enterprise development 15 15
Socio-economic development 5 5
Total 90,31 107
B-BBEE Level 2
Our culture roadmap

To become an organisation that thrives and flourishes, the Group Chief Executive has set out four strategic thrusts to drive organisational culture and business conduct:

AAgile

To be agile in a volatile world the Company must be fit, focused and able to adapt rapidly to change.

  • Driven
  • Efficient
  • Adaptable

AAdmired

The Company wants to be admired by its stakeholders as leaders in customer satisfaction, operational excellence and innovation.

  • Impeccable
  • Innovative
  • Motivated by excellence

D Digital

The future is digital and the Company needs to add intellectual capital to create value from its substantial investment in physical capital.

  • Inventive
  • Customer-centric
  • Advanced

U United

The Company will only succeed if it is united. This means working as one team to change Transnet with its Group Leadership Team, the Board of Directors, Shareholder, management and labour all pulling together coherently.

  • Single minded
  • Tolerant of others' ideas
  • Understand our impact
Operating context

Freight Rail

  • Operates 30 400 km of rail track across South Africa.
  • Transports bulk, break-bulk and containerised freight.
  • Freight Rail network and rail services provide strategic links between mines, production hubs, distribution centres and ports, and connect with cross-border railways of the region.
  •  
  • Revenue R39,1 billion

Total employees: 30 305

Permanent employees: 27 679

Fixed-term contract employees: 2 626

28% Female employees

72% Male employees

2,6% People with disablities

Engineering

  • Provides manufacturing, maintenance and refurbishment services of rolling stock and specialised equipment to Freight Rail, the National Ports Authority, Port Terminals and external clients. Houses Transnet’s Research and Development (R&D) unit to capture opportunities for technology innovation.

  •  
  • Revenue R9,4 billion

Total employees: 12 164

Permanent employees: 11 731

Fixed-term contract employees: 433

22% Female employees

78% Male employees

1,4% People with disabilities

National Ports Authority

  • Services eight commercial seaports in South Africa.
  • Core functions include the planning, provision, maintenance and improvement of port infrastructure.
  • Provides marine-related services, port services and navigation aids to assist the navigation of vessels within port limits and along the coast.
  •  
  • Revenue R10,4 billion

Total employees: 4 188

Permanent employees: 4 160

Fixed-term contract employees: 28

33% Female employees

67% Male employees

2,1% People with disablities

Port Terminals

  • Provides cargo handling services to a wide spectrum of customers, including shipping lines, freight forwarders and cargo owners.
  • Operates 16 terminals in eight ports spread along the South African coastline. Operations are divided into four major business segments, namely containers, bulk, break-bulk and automotive.
  •  
  • Revenue R11.2 billion

Total employees: 8 891

Permanent employees: 7 087

Fixed-term contract employees: 1 804

27% Female employees

73% Male employees

1,2% People with disabilities

Pipelines

  • Transports fuel from coastal refineries and crude oil imports to the inland market.
  • Transports gas from Secunda to industrial users in Durban and Richards Bay.
  • The New Multi-Product Pipeline (NMPP) enables the increase in liquid fuels volume throughput to meet forecast demand.
  •  
  • Revenue R4,4 billion

Total employees: 686

Permanent employees: 642

Fixed-term contract employees: 44

34% Female employees

66% Male employees

2,9% People with disablities

Customer profile

Large mining, shipping, manufacturing, agricultural, industrial,retail and energy contributors to the South African economy.

Services provided

  • Transnet’s services are both outbound (South African businesses moving products to international markets) and inbound (bringing products to South African markets).
  • Commodities transported include mining exports, general freight and petroleum products.
  • General freight includes: containerised cargo, local manganese, minerals, local coal, local iron ore, chrome and ferrochrome, agricultural products, iron and steel, fertilisers, cement, fast-moving consumer goods, bulk liquids, wood and wood products, industrial chemicals, intermediate products and automotive products.
  • Petroleum products include: crude oil, refined petroleum products, aviation turbine fuel and methane-rich gas products.

Where we operate

  • Five Operating Divisions spread throughout South Africa
  • Four satellite offices in Lesotho, Tanzania, Namibia and Swaziland
  • Three joint operating centres in Mozambique, Botswana and Zimbabwe

Specialist Units

  • Transnet Group Capital
  • Transnet Property
  • Transnet Foundation
Strategic context

Transnet’s strategic direction is expressed through the MDS.

The MDS and its implementation is guided by the SSI issued by the Minister of Public Enterprises and the Shareholder’s Compact.

The Company has adopted a new strategic blueprint, namely Transnet 4.0 – to gear the MDS to meet the challenges and opportunities of the 4th Industrial Revolution.

Main growth thrusts of Transnet 4.0 include:

  • Accelerated efforts to extend Transnet’s footprint in the fast-growing regions of Africa, Middle East and South Asia;
  • Product and service innovation to transform from a transport and cargo handling-focused business to an integrated, end-to-end logistics service provider; and
  • Scope expansion of Transnet’s manufacturing business, with leading technologies to enhance new and existing products and improve business processes.
Market context
  • Global growth for 2016 is estimated to have slowed to 3,1%, recovering to 3,4% in 2017.
  • Partially recovered commodity prices.
  • Global asset markets appear calm, equity prices are at high levels.
  • Renewed capital inflows to emerging market economies.
  • Subdued outlook for advanced economies, placing downward pressure on interest rates as monetary policy could remain accommodative for longer.
  • Prospects for 2017 differ sharply across countries and regions, with emerging Asia and India showing robust growth.
  • Sub-Saharan Africa forecast to experience overall growth of only 2,9%.
  • Continuing trend of weaker gross domestic product (GDP).
  • The South African ratings downgrade greatly limits the options for Government to intervene to boost economic activity through fiscal or monetary actions.
  • While commodity markets could improve, demand for value-added and consumer goods could struggle to grow. Transnet’s regional demand prospects remain positive, especially if greater connectivity can be engineered.
  • The 4th Industrial Revolution promises a fusion of technologies poised to disrupt almost all industries and transform systems of production, management and governance.
Regulatory context

The Company operates in compliance with 200 regulations. Tariffs charged by the National Ports Authority and Pipelines are determined by independent economic regulators, namely the Ports Regulator of South Africa (Ports Regulator) and the National Energy Regulator of South Africa (Nersa) respectively.

The Railway Safety Regulator regulates the safety of the rail operations of the Company, issues safety permits (for a fee), and conducts inspections and audits on the Company. Transnet also operates within a policy context which is determined by the Department of Public Enterprises and the Department of Transport respectively.

Financial context

Transnet is funded through reserves and borrowings and does not receive subsidies or guarantees from Government. It raises funds in the debt markets based on the strength of its own balance sheet, having raised funding without Government guarantees since March 1999. Legacy Government-guaranteed debt amounts to R3,5 billion comprising Eurorand bonds under the Euro Medium-Term Note (EMTN) Programme maturing in 2028 (R2,0 billion) and 2029 (R1,5 billion) respectively.

As an SOC, the financial strategy reflects the higher risk profile of the business. To meet long-term market demand, Transnet must invest for long-term growth prospects, but be cognisant of short- to medium-term volatility in the domestic and international markets. The Capital Investment Plan has reduced from R277,8 billion to R229,2 billion over the next seven years in response to the predicted lower-than-planned freight demand.

Key financial interventions

  • Revenue diversification
  • Stringent cost management and optimisation
  • Aggressive working capital management
  • Generating a return on assets commensurate with the risk
  • Maintaining Transnet’s standalone investment grade credit ratings
  • Structured funding at cost-effective levels
  • During the year, there were no significant changes to the way in which Transnet is owned, structured or in the way it functions
Socio-economic context

Transnet SOC Ltd is a freight transport and logistics company. The Company’s strategic focus is guided by the SSI issued by the Minister of Public Enterprises and the Shareholder’s Compact, which stipulate medium-term strategy and objectives, including:

Reduce the cost of logistics as a percentage of transportable GDP;

Effect and accelerate the modal shift by maximising the role of rail in the national transport task;

Leverage the private sector in the provision of both infrastructure and operations where required;

Integrate South Africa with the region and the rest of the continent; and

Optimise sustainable economic, social and environmental outcomes of all activities undertaken by Transnet.

Nine Sustainable Developmental Outcomes (SDOs) have been negotiated with the Shareholder and are aligned with the Government’s vision as per the National Development Plan and the medium-term initiatives that Government is driving to address poverty, inequality and unemployment.

Endorsement of external charters and frameworks (not limited to)

Generic Transport Public Sector Charter

Rail Charter

Maritime Charter

Property Charter

United Nations Global Compact (since 2012)

International Integrated Reporting Framework

 



Memberships of associations (not limited to)

New Partnership for Africa’s Development (NEPAD)

South African Railways Association (SARA)

International Union of Railways

Association of American Railroads (AAR)

Railroad Association (RRA)

Union of African Railways (UAR)

Maputo Corridor Logistics Initiatives (MCLI)

International Association of Marine Aids to Navigation and Lighthouse Authorities (IALA-AISM)

 



List of awards for the 2017 financial year

  • Chartered Secretaries Southern Africa Integrated Report Awards (winner: Large State-owned Company category)
  • 2016 Ernst & Young Award for Excellence in Integrated Reporting
  • Top Employers South Africa 2017 certification by Top Employers Institute
  • CFO Awards: Transformation and Empowerment Award (winner)

Women in Transport Awards

  • Best Innovation Partnership in Service Delivery (Project): Freight Rail (Maria Mzimela)
  • Best Head of Department in Transport: Sylvia Siyo, National Ports Authority
  • Best Skills Contributor: Khomotjo Mphahlele, Transnet Maritime School of Excellence (South Africa)
  • BASA Awards for the National Arts Festival
Our operating structure
Our business model

Organisational overview

Click on heading for more

  • Our value proposition
  • Funding sources
  • Cost considerations
  • Overview
  • What we do
  • Revenue streams
  • Exernal variables
    impacting our business
  • Opportunities
  • Top 10 risks

As a State-owned Company, our overarching value proposition is founded in our Shareholder mandate and enabled through the MDS:
The modernisation and renewal of South Africa’s transport and logistics infrastructure through strategic investment in rail, ports and oil and gas pipeline infrastructure; cost-effective logistics value chains; value-added services; and advanced engineering solutions.

  • Value for customers
    • Predictable and reliable delivery of customer volumes
    • Customer-centric business innovations
    • Full value-chain service propositions
    • Distinctive product and service designs per market segment
    • Integrated cross-operating divisional customer support across the logistics value chain and ‘lifecycle of requirements’
    • Digital transformation across the value chain
  • Value for suppliers and service providers
    • An ethical and transparent procurement process
    • Fair and equitable tender processes
    • Fair, transparent and efficient contract management
    • A proactive and collaborative approach to local supplier development
  • Value for employees
    • Employer of choice
    • A work ethos of ‘safety in all we do’
    • An ‘iBelong’ culture
    • Opportunities to grow personally, professionally and academically
    • Exposure and connectivity to broader national and regional opportunities
    • A supportive environment in which to prosper
  • Value for our Shareholder
    • Sustained financial returns and broad socio-economic value through sound capital investments in infrastructure ahead of demand, regulatory compliance, accountable business practices, ethical leadership and responsible corporate citizenship

  • Value for financial partners
    • A funding strategy based on strategic priorities
    • Capital investments that are likely to yield the best financial and social returns
    • A reliable and credible borrower which, albeit State-owned, issues debt on the strength of its financial position without Government guarantees
  • Socio-economic value and environmental stewardship
    • The modernisation and renewal of South Africa’s transport and logistics infrastructure
    • Regional integration to support South Africa’s market competitiveness
    • CSI initiatives that contribute meaningfully to the socio-economic well-being of communities where we operate
    • Activities that enhance the natural environment’s capacity to meet the resource needs of future generations
  • International and domestic capital markets
  • Loan market (public and private)
  • Development finance institutions (domestic and international)
  • Export credit market
  • Structured financing
  • Partial funding by customers and/or interested parties that are part of Transnet’s investment plan
  • Project-specific funding
  • Fuel and electricity costs
  • Asset depreciation
  • Personnel costs
  • Investment in infrastructure projects and equipment
  • Regulatory and compliance costs
  • Supplier and support services
  • Borrowing costs
  • Inflation
  • Materials and maintenance costs

 

  • Freight solutions
    • World-class, competitive and customer-centric end-to-end freight solutions (value chain)
    • Added capabilities and partnerships to enhance general freight positioning (4PL)
    • Africa dimension – port and rail concessions
    • Foster regional trade
  • Advanced manufacturing
    • Africa’s own rail, ports and transport OEM
    • Customer-focused packaged asset lifecycle solutions (design, finance, build, maintain and replace)
  • Digital
    • Leveraging and monetising freight- and infrastructure-related digital capabilities – e.g. fibre and telecommunications, data solutions and information-driven business
    • Creation of digitised value-added services (e.g. alerts to value chain participants)
  • Liquids and gas
    • Facilitate integrated and reliable access and distribution of liquid and gas energy resources
    • Liquefied natural gas (LNG) opportunity
    • Energy opportunities
  • Infrastructure and spatial solutions (local and regional)
    • Creating and enhancing logistics ecosystems to enable and accelerate economic growth
    • Port and inland hubs
    • Optimise local, national and regional freight logistics networks
    • Core and leveraged partnerships
  • Commodity-based revenue from commodities transported:
    • Coal, Iron ore, Manganese, Chrome, Steel, Cement, Agricultural products
    • Forestry products, Aggregate automotives, Fast-moving consumer goods, Containerised cargo and crude oil
    • Refined petroleum products, Crude oil, Aviation turbine fuel, Methane-rich gas
  • Non-commodity revenue from:
    • Engineering
    • Transnet Property
    • Other revenue at Freight Rail,
    • National Ports Authority, Port
    • Terminals and Pipelines
  • Slow rates of global and local economic growth
  • Widening social inequality Structural unemployment
  • Climate change adaptation
  • Volatile commodity prices impacting freight volumes and revenue
  • Energy and water supply challenges
  • South Africa’s creditworthiness impacting borrowing costs
  • Growth opportunities in Africa
  • Grow market share in the domestic transport market through the road-to-rail strategy
  • Private-sector partnerships
  • Service expansion through value-added services
  • Research and development in renewable energy
  • Strength of Transnet’s financial position and investment grade credit rating for domestic borrowings
  • Pricing risk
  • Capital investment risk
  • Macroeconomic risk
  • Volume growth risk
  • Operational risk
  • Human resources risk
  • Productivity/efficiency risk
  • Regulatory risk
  • ICT infrastructure risk
  • Sustainability risks
External environment

Our activities are influenced by various external factors:

Economic environment
  • Global markets appear calm, equity prices are at high levels and renewed capital is flowing to emerging market economies.
  • Stable growth performance has reduced concerns about China’s growth prospects, and commodity prices have partially recovered. The challenge of declining demand for commodities, however, has not entirely abated.
  • Sub-Saharan Africa is forecast to experience overall growth of 2,9%. In South Africa, the economic situation remains challenging, with growth of around 1,0%1 anticipated in 2017, continuing the general trend of weaker gross domestic product (GDP) growth performance since the 2008 global financial crisis.
  • In the domestic context, South Africa has been downgraded to non-investment grade BB+ from BBB-, so-called ‘junk’ status by rating agencies Standard and Poor’s and Fitch. Following on this rating agency Moody’s placed South Africa on a ratings review. The Sovereign credit rating saw the further downgrade of SOCs, including Transnet, impacting our credit rating going forward.
  • Transnet’s demand picture is mixed. While commodity markets are expected to improve slightly, demand for value-added and consumer goods will struggle to grow. Transnet’s regional demand prospects remain positive, especially if greater connectivity can be engineered.
Industry trends
Rail sector
  • Containerised freight traffic is increasing globally, and in developing countries, such as South Africa, the growth in port container handling is expected to be even greater over the next three decades.
  • International trends indicate that one of the main drivers to increased freight forwarding is the development of mega-terminals and super-terminals in strategically located corridors.
Port sector

Key issues impacting port operations include:

  • A worldwide trend towards industrialisation and specialisation, creating a need for large shipments of goods and materials over significant distances;
  • An increase in free trade agreements – and an unprecedented expansion in trading volumes and widespread deregulation of many economies – has led to the private sector playing an increasingly important and profitable role in port terminal management;
  • Exponential increase in vessel sizes in pursuit of economies of scale in transporting cargo;
  • Restructuring of logistics networks and improvement in dealing with hinterland congestion and intermodal transport links;
  • Awarding of concessions to global terminal operators to improve productivity, efficiencies and profitability of ports; and
  • Ports accommodating and including infrastructure for the transport and handling of alternative forms of energy, such as liquefied petroleum gas (LPG) and liquefied natural gas (LNG).
Pipeline and gas
  • South Africa’s energy resources are dominated by coal; more than 80% of electricity generated by Eskom is from coal-fired power stations. To align with the global objectives of lower greenhouse gas emissions, Government aims to diversify South Africa’s energy supply mix; doing so will improve the security of energy supply and reduce the overall carbon footprint of the country. Natural gas is a significant alternative energy source for South Africa.

Key issues that will influence long-term pipeline and terminal planning:

  • The need for sustainability in developing infrastructure solutions, as well as increased stakeholder engagement on key issues;
  • Government’s Clean Fuels 2 Programme and the impact on security of supply; and
  • Slowdown in local economy and lower fuel demand.
Technological innovation
  • The ‘digital evolution’ is reshaping industries across the board, and the pressure to innovate is increasingly compelling transport and logistics providers to become ‘fast digital followers’ to remain competitive.
  • Customer value chains are changing, with many clients already ahead of the technological curve, and evidencing ever-increasing service expectations.
  • The emerging digital environment is also enabling new business models, particularly regarding collaborative solutions and modal connectivity.
  • The new digital landscape is characterised by a fusion of technologies that are poised to disrupt almost all industries and transform systems of production, management and governance.
  • Governance and compliance will be significantly enhanced by ‘click-of-a-button’ transparency on performance. Return on assets will be maximised by deploying tools to drive asset productivity in yards and networks; and by improving service reliability through data and advanced analytics.
Regulatory environment
  • Transnet faces regulatory uncertainty, particularly regarding lower-than-required tariff escalation as determined by the Ports Regulator and the Nersa. Approximately 22,5% of Transnet’s revenue and 35,4% of its EBITDA is impacted by economic regulation. Unless relationships with regulators are proactively and strategically managed, tariff decisions could have a significant impact on investment decisions, investor confidence and ultimately on the execution of the Company’s strategy.
  • Sharp escalations in safety permit fees charged by the Rail Safety Regulator is also a critical consideration for the Company’s revenue planning.
  • Institutional investors have pointed out policy uncertainty as a significant factor that may result in sluggish investment growth. Furthermore, the socio-economic climate is growing increasingly precarious following the downgrade of the Sovereign credit rating. Should investment slow down, there is reduced scope, nationally, for improving employment statistics as businesses grapple with reduced spending and reduced investment. Transnet must face these challenges, not only as a corporate but also as an agent of Government’s imperatives, which include remediating the country’s challenges of poverty and inequality.
Natural environment
  • Transnet’s business is conducted across South Africa’s diverse ecosystems where it builds infrastructure, operates equipment and handles large volumes of cargo. Our employees, contractors, suppliers and customers have an impact on the natural environment and depend on it for their livelihoods.
  • Transnet recognises the potential impacts of its operations on the biodiversity of areas where it operates. The Company’s operational footprint spans across kilometres of ecosystems. Accordingly, we seek to avoid, minimise and mitigate the impacts arising from our operations and, where possible, restore the environment to maintain healthy ecosystem services for the future well-being of all South Africans.
  • Transnet is one of South Africa’s largest industrial consumers
    of electricity. Energy and carbon management is, therefore, Transnet’s primary focus for its environmental stewardship initiatives. The Company has realised significant gains in terms of energy efficiency and reduced carbon emissions in recent years, moving more cargo with less energy.
  • Transnet aims to further improve the protection and restoration of natural habitats as a critical outcome of our biodiversity management approach.
Pipelines

Transnet has identified the following environmental sensitivities2 for its pipelines operations:

  • The Critically Endangered Vaal River is crossed by the Refined Products Pipeline;
  • Biodiversity sensitivities along the Refined Products Pipeline include the Critically Endangered Blesbokspruit and Klip River Highveld Grassland Habitats;
  • The Critically endangered Wilge River is crossed by the Crude Oil Pipeline; and
  • Critically endangered Wetland Habitats are concentrated as the lines approach Gauteng and the coastal cities and extend along the KwaZulu-Natal coastline.
Ports
  • Over time vessel berths experience a gradual filling of fine silt and clay sediment, known as shoaling. Excessive shoaling leads to a decrease in water depth at a berth, which in turn leads to limiting the drafts of visiting vessels. The conventional approach to mitigating shoaling is through maintenance dredging, which is expensive and has several environmental implications. As an alternative to maintenance dredging, a series of submerged jet water pumps can be installed at the berth. The pumps will periodically increase the speed of passing water currents, thus reducing the likelihood of shoaling.
  • On dredging, it is commonly assumed that dredged material is contaminated waste and should, therefore, be disposed of; however, a substantial portion of dredged material is usable and untainted, with contaminated dredged material usually limited to industrial sites. Recently, the stigma of dredged material has shifted from a waste product to a beneficial resource through recycling. However, cost is a major obstacle in determining how best to manage dredged material – recycling is costlier than securing a disposal site.

1 Bureau for Economic Research – January 2017.
2 As per the Transnet Long-term Planning Framework SEA conducted for existing Transnet pipelines.