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

Creating value through the six capitals

Intellectual Capital
As a logistics infrastructure enabler, Transnet has to grow, invest and modernise at unprecedented rates through innovation and technological advancements. Our investment in research and development has led to an ever-expanding range of rolling stock products. Our technology and capabilities are focused to deliver world-class products and services specifically designed for the African market. To build in-house capability – and to promote local skills and content – we balance the technical content that can be outsourced to local providers, and that which needs to be developed internally as the organisation’s intellectual capital. Inherent in our drive for innovation is the need to publish and protect Transnet’s intellectual property assets. Our Long-term Planning Framework contains several unique methodologies that originated within Transnet.
Creating intellectual value

Engineering, an internationally acclaimed original equipment manufacturer (OEM) of freight wagons, forms our research and innovation hub. Through Engineering, Transnet is expanding its offerings to narrow-gauge operators worldwide. Our investment in research and development has led to an expanding range of rolling stock products designed to suit various area-specific conditions.

Key intellectual capital inputs at 1 April 2016
  • Research and development (Engineering) Research
  • Standard operating procedures Procedures
  • Policies, frameworks and processes Frameworks
  • Responsible leadership principles and practices Leadership
Key intellectual capital impacts on the other capitals

Learning from the traction motor prototype will be used in the manufacture of the full-scale prototypes Advanced manufacturing

The Condition Monitoring System (CMS) tracks stationary and mobile assets Improved decision-making

Our real-time Advanced Data Analytics and Machine Learning platform facilitates predictive maintenance, which improves reliability and productivity World-class rolling stock OEM

Key factors impacting intellectual capital

The rapid decline in revenue from traditional markets means Engineering must invest heavily in achieving OEM status in passenger trains. Large investments remain critical in research and business intelligence development to increase revenue in niche markets. Transnet’s ability to attract sufficient funding remains key to our ability to greatly expand our horizons and contribute to the MDS.

Key intellectual capital outputs at 31 March 2017
  • 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 Advanced Data Analytics and Machine Learning platform (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 (TAL) – an application to connect to Transnet’s in-house designed control system for advanced diagnostics and monitoring
Trade-offs in our use of intellectual capital

Moving into the 4th Industrial Revolution, Transnet will increasingly operate as a multi-faceted, manufacture-driven, service-led organisation. Some of our existing technical competencies may become obsolete, while other yet unknown competencies will be required. Some existing skills may be replaced by technological innovations. Within this digital context, in which Transnet hopes to play an innovative role, we need to maintain a careful balance in our requirement for specialist technical advancements, and our mandate to create and sustain broad-based employment for the Company and the wider economy. This balance will be maintained, in part, by investing in appropriate upskilling of people and appropriate re-deployment of skills.

Approaches to managing intellectual capital outcomes

Leading research and development into emerging digital technologies. Technology is a key enabler of innovation and transforming the organisation into a ‘digital’ Transnet.

Attracting and retaining people with skills that enable our strategy and add value through innovation.

Enhancing customer relationship management and business intelligence to create customer-centric business solutions.

Partnering with academic institutions to empower growth-oriented entrepreneurs through business education, mentorship and other support.