Transnet Enterprise Development Hub - Saldanha

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Transnet Mandate, Vision and Mission

• To assist in lowering the cost of doing business in South Africa, enabling economic growth and security of supply through appropriate ports, rail and pipeline infrastructure as well as operations in a cost effective and efficient manner within acceptable benchmark standards

Mandate

• Delivering freight reliably

• Transnet will meet customer demand for reliable freight transport and handling services through:

• Fully integrating and maximising the use of our unique set of assets

• Continuously driving cost efficiencies

• A demonstrated concern for sustainability in everything we do

Vision

• To enable the competitiveness, growth and development of the South African economy by delivering reliable freight transport and handling services that satisfy customer demand.

Mission

Source: Team analysis

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Government Objectives

• Increase the employment intensity of the economy

• Facilitate diversification beyond our current reliance on traditional commodities and non-tradable services

• Increase the education level and skills capability to address shortfall in artisan and technical skills

• Promote an equitable socio-economic society through the integration of historically disadvantaged persons into the main stream economy

• Enable small businesses to compete successfully in the economy

• Balance spatial development of rural areas and poorer provinces

Supporting Government’s key development objectives -Economic growth and Transformation

Source: SD strategy

Transnet has aligned its SD strategy to meet government objectives

• The New Growth Path (NGP) has set job creation as a country priority and has identified infrastructure development as a means to achieve this

• Transnet will be spending R300 billion on Capex infrastructure programmes over the next 7 years, as well as R325 billion on Opex;

• This significant spend will create a massive opportunity to develop competitive local supplier industries through Supplier Development,

• Through supplier development Transnet will enable :

Transfer of skills Job creation Rural integration Enterprise development

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Transnet’s Approach on Enterprise Development

The DTI’s Codes of Good Practice Code 600 – ED Element Objective of ED Element

The DTI’s Codes of Good Practice provide a standardised means of measurement with the aim of ensuring consistency in the implementation of B-BBEE; while establishing the foundation for a more integrated, and more transparent transformation process.

Code 600, dealing with the measurement of the Enterprise Development Element of B-BBEE seeks to measure the extent to which enterprises carry out initiatives aimed at contributing to Enterprise Development.

Companies has to spend the 3% NPAT

The Enterprise Development Element also aims to address certain key challenges facing Qualifying Small Enterprises and Exempted Micro Enterprises and more specifically black-owned entities that struggle to take their businesses from survivalist and/or micro level to sustainability and profitability level

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Saldanha – A strategic location for SMME development

• Saldanha Bay is the largest contributor to the West Coast district’s economic output.

• The municipality is predominantly residential; although about 39% of local households can be classified in the middle income bracket, the majority of people in SaldanhaBay Municipality are relatively poor.

• The local economy is in the midst of a major diversification, from being dependent on fishing and agriculture, to including manufacturing and tourism as major economic sectors.

• Furthermore, Transnet will be investing in expanding the current capacity of the bulk iron ore handling facilities along the Sishen - Saldanha Export Corridor, culminating at the Port of Saldanha.

• This diversification and investment in the region holds the potential for major economic growth and job creation, but the local community may be at risk of not being able to take opportunities in the new economic sectors due to a lack of skills as well as financial and non-financial business support.

4Source: Frontier Market Intelligence

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Transnet Enterprise Development Hub - Business Model

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SOURCE: Team

Objectives

• To create an enabling environment where small businesses will have easy access to products and services offered by both Provincial and National Economic Development Institutions under the same roof – A “one-stop shop”

• To create a culture of entrepreneurship

• To transform Transnet’s supplier base ensuring active economic participation of SME’s (through a database of potential black suppliers); and

• To develop and support new entrepreneurs through structured training programmes and resources

Target Market

• Aspiring black entrepreneurs and small businesses in and around Saldanha as well as the broader West Coast region

Project Cost

• Transnet will Invest R 7m in the next three years

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Transnet Enterprise Development Hub – Services offered

Procurement Advisory Services

• Provide information on procurement opportunities within Transnet

• Assistance with vendor registration process

Developing, supporting and

providing funding to SMME's

and Co-operatives in GP;

Providing pre and post

investment business support

services in line with its

legislated mandate;

Helping enterprises improve

business efficiency by providing

them with information, advice

and guidance on business

issues.

Giving access to support skills

and capabilities normally only

available to big business

SEDA will provide the following specialised services:• Business Assessment and

Diagnostic Tools• Business Management

Systems/Technologies• Human Resource

Management • Legal Issues

Dti will provide the following specialised services:• The Black Business SD

Programme• The Co-operative Incentive

Scheme• The SEDA Technology

Programme• The Capital Projects

Feasibility Programme• The Critical Infrastructure

Programme• The Manufacturing

Competitiveness Enhancement Programme

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Advise, support and provide guidance on policies, documents and initiatives relating to SME’S.

Receive suggestions, enquiries and comments regarding

various related issues in respect of taxes and services available

to SME’s.

Maximise compliance as well as finding ways to reduce the

compliance burden experienced by SME’s.

Providing verification support to

SMMEs at a lower cost

Assisting youth enterprises to set up, expand or develop their

business; Financing programmes;

Providing mentorship, training programmes and business

development support.

Assisting to unlock the potential of entrepreneurs by

easing the regulatory and compliance burden experience by SME’s to transact with CIPC

electronically.

CIPC, through Transnet facilitation, will offer online

customer code creation, name reservations and company

registrations

Transnet Enterprise Development Hub – Services offered

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Pilot Transnet Enterprise Development Hub (Carlton Centre) was formally launched by Min. Malusi Gigaba on 7/08/13

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Transnet Enterprise Development Hub (Carlton Centre) –Progress to date

9

Average Walk-ins to date

2 533

317

90

Total Annual Walk-in’s in the Financial

year

Average No. of Walk-in’s per month

to date

Average No. Walk-in’s per week

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Transnet Enterprise Development Hub – Future plans

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SOURCE: Team

• The fundamental objective of the Transnet Enterprise Development Hub is to demonstrate Transnet’s commitment to the development of Small, Medium and Micro enterprises (SMMEs) and deliver on Government’s developmental objectives.

• Based on the success of the pilot phase (Carlton Centre), Transnet will be establishing additional ED Hubs across South Africa with a particular focus on the priority/underserved provinces.

• Transnet favours a structured “needs-based” approach when it comes to the roll-out of Enterprise Development Hubs nationally in order to ensure sustainability.

• These ED Hubs may also be utilised to support local business communities in the areas linked to Transnet CAPEX programmes.

• Transnet’s objective is that the ED Hubs are also to be strategically located closely to the identified target market in order to assist with reducing the cost of doing business for SMMEs.

• Initial feasibility studies have highlighted following areas as potential locations for the next Transnet ED Hubs i.e. the Western Cape (Saldahna), Eastern Cape (Mdantsane), Limpopo (Tubatse) and Northern Cape (De Aar).

20 Thank You!