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Transnet, South Africa’s state-owned freight and logistics company, recently announced its R300 billion Market Demand Strategy that will make its rail freight division the world’s fifth largest , while creating thousands of jobs.
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A massive 588 000 – that’s how many jobs, both part-time and full-time, Transnet expects to create over the next seven years as it spends R300 billion on expanding rail and port infrastructure and laying new pipelines. These jobs will be created both during the building of new infrastructure and after projects are completed. As businesses start using new and expanded rail, ports and pipelines – from mines to factories and small enterprises – they will begin experiencing an increase in demand for their goods and services.
To support its growth, Transnet will increase its staff component by 25 per cent over the next seven years – to peak at 74 000 in 2018/19.
FROM ROADS TO RAILThe Transnet projects form part of Transnet’s Market Demand Strategy, which is aimed at expanding infrastructure and shifting more goods from roads to rail. In so doing , it will boost freight volumes, particularly the shipment of iron ore, coal and manganese. When the new projects come on line, Transnet Freight Rail will become the fifth biggest rail freight company in the world. To drive growth, Transnet will also spend R7,7 billion on training from now until 2019 – including R4,7 billion on bursaries and grants. The Minister of Public Enterprises Malusi Gigaba said that Transnet was training about 3 500 people in engineering-related skills including technicians, artisans and sector-specific scarce skills such as train drivers.
“Transnet has enrolled 854 new artisan learners which is significantly beyond its business needs and is exceeding the targets agreed in the national skills accord,” he said.
