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Transnet

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Transnet
Introduction
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



References: Broad-Based Black Economic Empowerment Act, 2003 Act No. 53 of 2003. Byars, L. (1991). Strategic Management, Formulation and Implementation: Concepts and Cases. New York: HarperCollins. City of Johannesburg (COJ) (2004) Integrated Transport Plan. CSIR. (2012) State of Logistics for South Africa, Centre for Logistics and Decision Support, Pretoria Denel (Pty) Ltd, “Annual Report,” 2004, 6, http://www.denel.co.za/resources/AnnualReport2004.pdf. Du Plessis, S and Smit, B. (2006) Economic Growth in South Africa Since 1994, Stellenbosch Economic Working Papers, University of Stellenbosch. Ecorys, (2006) Analysis of the impact of oil prices on the socioeconomic situation in the transport sector: A report for the European Commission Elan, S Hanival, S. and Maia, J .(2008) An Overview of the Performance of the South African Economy since 1994 Harris, B Industrial Action Report (2008) Strike activity measured in number of labour disputes, working days lost and time–loss ratio, 2004-2008, Chapter 3. Ittmann, H.W and King, D. (2010) The State of Logistics – an overview of logistics in South Africa Johnson, G Kotler, P. (1998). Marketing Management – Analysis, Planning, Implementation, and Control. Englewood Cliffs: Prentice-Hall. Magliolo, J. (2006) Private & Confidential: Overview of SA Trucking Market Morrison, J.K.D, Bonnefoy, P.A, and Hansman, R.J Piper, L., Hendricks, C., Masterson, G. and Letsholo, S. (2005) South Africa’s 2004 Election: The Quest For Democratic Consolidation, EISA Research Report No 12 Porter, M.E PRASA annual report 2009 PricewaterhouseCoopers (PwC) (2011) Transportation & Logistics 2030, Volume 4: Securing the supply chain PricewaterhouseCoopers (PwC) (2013) Future prospects in Africa for the transportation & logistics industry, Africa Gearing up Strydom, J.W., Cant, M.C. & Jooste, C.J. (2000) Marketing Management, 4th edition, Cape: Juta & Co. Thompson jr, A, Strickland III, A, and Gamble, J. (2011) Crafting and executing strategy : creating sustainable high performance in South African businesses, 2nd Edition, Maidenhead, Berkshire : McGraw-Hill Higher Education Vermooten, J

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