Transnet is the largest and most crucial part of the freight logistics chain that delivers goods to each and every South African. Every day Transnet delivers thousands of tons of goods around South Africa, through its pipelines and both to and from its ports. It moves that cargo on to ships for export while it unloads goods from overseas.
Transnet is fully owned by the South African government but operates as a corporate entity aimed at both supporting and contributing to the country’s freight logistics network. It aims at developing South African industry, reducing the cost of doing business, while at the same time operating efficiently and profitably.
Operations
Transnet operates and an integrated freight transport company, formed around a core of five operating divisions that complement each other. These are supported by a number of Company-wide specialist functions such as Transnet Projects which underpin the group as a whole.
The new Transnet is made up of the following operating divisions:
Transnet freight rail (formerly Spoornet – the freight rail division)
Transnet rail engineering (formerly Transwerk - the rolling stock maintenance business)
Transnet national ports authority (formerly the NPA - fulfils the landlord function for South Africa’s port system)
Transnet port terminals (formerly SAPO - managing port and cargo terminal operations in the nation’s leading ports), and
Transnet pipelines (formerly Petronet - the fuel and gas pipeline business, pumps and manages the storage of petroleum and gas products through its network of high-pressure, long distance pipelines)
PESTEL Analysis
In analysing the macro-environment of an organization, it is important to identify the factors that might in turn affect a number of vital variables that are likely to influence the organization’s supply and demand levels and its costs (Johnson and Scholes, 1993).
Figure 1.1 Pestel analysis
The analysis examines the impact of each of
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