The document discusses Transnet's supply chain development program (CSDP) and long-term strategy to localize its supply chain while promoting local South African industries and establishing the country as an offshore procurement location. It outlines Transnet's CSDP focus areas such as port equipment, rolling stock components, and projects. The CSDP phase one strategic approach is to focus on tier 1 suppliers and assist them in engaging tier 2 suppliers. Each procurement opportunity will be analyzed to determine required CSDP initiatives to incorporate into tenders.
4. Transnet’s CSDP Focus Suppliers’ CSDP Focus Transnet’s ED Focus Transnet’s PP Focus Suppliers’ PP Focus Supplier Development Category Supplier Development Activities Port Equipment OEMs: GE, GM, EMD, Mitsui, Alstom, Siemens TRE DCD UCW SCAW SURTEES* *SURTEES IS A WAGON MANUFACTURER IN MINING INDUSTRY **ED – Enterprise Development / PP – Preferential Procurement OEM s Export SM personnel lobby with OEM Global Sourcing Team SM personnel RFx process and contract negotiation SM personnel advise on available partners and TRE involvement SM personnel identify ED opportunities Transnet’s CSDP phase one Strategic Approach will be to focus on Tier 1 suppliers and to assist them in engaging Tier 2 suppliers Skills Transnet’s CSDP Approach Sphere of Influence Tier 1 Systems – Subsystems Tier 2 Tier 3 Other Rolling Stock Components Assemblies IP FDI Goods Services Kalmar Liebherr / CPS Projects Alstom OEMs: Kalmar, Liebherr Cranes, Straddle Carriers, RTGs, Tugs, Dredgers Supplier Base Sphere of Control
5. Transnet’s CSDP Approach: Locos example CAPEX OEM with maybe a PDI partner CAPEX OEM with local PDI partner CAPEX OEM / Local JV Traditional OEM Purchase Forex Dependency OPEX OEM with maybe an PDI partner as agency Rev Eng 100% 80% 60% 40% 20% Local Content Recent OEM Purchase (MARS) Value OPEX OEM with maybe an PDI partner as agency Local Assembly Pending OEM Purchase (EMS) CAPEX OEM / Local JV Manufacture and Assembly OPEX OEM OPEX Local JV CSDP 1 (and in future) – forced 40% local content CSDP 2 – increase localisation of previous deal Enterprise Development – not on radar
6. Each opportunity will be analysed and CSDP initiatives requirements determined and incorporated into tenders Impact on Industry Development Targeted skills Maintenance and repair capabilities Component Manufacture / Upgrade capabilities System / Sub-system manufacture High Low High Low Complexity and Participant’s Risk National Economic Growth Operational Tactical Strategic Transnet CSDP Objectives Export Potential CSDP Initiatives are measured for return / impact – although complexity and risk increases with greater impact Strategic Industry Plan Overarching capabilities associated with tenderers Definition of appropriate requirement
7.
8. “ It is when we start focusing on value for money that procurement starts becoming a key strategic tool for sustainable economic growth and development; when buyers start focusing on obtaining value for money, they start to change their behaviour in ways which encourage investment in local industry and the development of more competitive suppliers, which in turn are foundations for economic growth and development.” Minister Alec Erwin Department of Public Enterprises Any Questions