Back to Rail – a Critical Analysis

Embracing

change for a

sustainable

future

Kate Stubbs

how people felt?

CHANGE

how well geared?

CHANGE happening

are changes in behaviour

and operations happening

at commensurate pace?

or just an illusion

of change?

PRESENTATIONS

RESULTS

DISCUSSION

( HUGE thanks to all who contributed)

MEGATRENDS

GAME CHANGERS

what took you

so long?

have we become

numb to change?

GAME CHANGERS

ranked identifying and

managing change as top

business objective

KEY observations 89%

KEY observations

new industries

new titles

38th cycle tour

not the first time had to deal with sudden changes …

keeping costs low … without losing sight of primary goal

ability to anticipate change and adapt quickly … year on year

getting relevant skills and talent on board …. volunteers!

dealing with market volatility … 38 years – booms times / recession

enhancement of services and products … from 35 000 paper entries to online

… lifestyle expo and branded merchandise

great leadership … business lessons

changing market dynamics … surge in both amateur and professional cyclists

rising competition … other charity events competing for share of wallet

predicting customer demand …. right infrastructure – riders / spectators / services

mobilising infrastructure … the obvious / the not so obvious … abseiling team to evacuate Chappies!

… attention to detail … legendary!

great leadership … business lessons

why this story?

ranking of key strategic business constraints over next 5 -10 years

ranking of key strategic business constraints over next 5 -10 years

plus factors

business restraining factors

ranking of key strategic business objectives over next 5 -10 years

ranking of key strategic supply chain objectives over next 5 -10 years

ranking of key strategic supply chain constraints over next 5 -10 years

Most

constraints

ranked high

showing

challenging

environment

for SA

business

7of top10 RELATE TO PEOPLE

constraints objectives

dealing

with

change

living in an age of change

definition

reaction

attitude

disruption

definition of change in a business environment

ranking most disruptive change in their organisation

views and attitudes towards change

TWO CAMPS

IN TOUCH NOT IN TOUCH

20% 80%

KEY observations

So what business are we really in?

common thread … pace of change

serious consequences

… if slow to respond

• response times

• agility

• ready to adapt

• seize opportunities

• counter threat

• response times

• agility

• ready to adapt

• seize opportunities

• counter threat

Critical role of rail in our future competitiveness

Copyright 2005 – Barloworld Logistics

SA Inc: perception of infrastructure issues Please rate the quality of SA’s freight logistics system as it affects your supply chain

70%

60%

50%

40%

30%

20%

10%

0

Excellent Above average Average Below average Poor

Intermodal facilities Airports / Air transportation Customs

Roads Railways Ports / Harbours

supplychainforesight 2005

Poor

Perception

of rail

38

39

Private sector involvement seen as key to improving rail

infrastructure & will increase national freight movement

40

83% aware of Transnet’s plans to spend

approximately R80bn on infrastructure

Indicate your view of the following statements on Transnet’s

initiatives on improving inter-modal transportation in SA

South African Infrastructure

Infrastructure again

Public-private sector

collaboration is vital

Little confidence in various public programmes

Road vs Rail: The full picture

79%

9%

4% 3%

4%

Current rail usage

37%

16%

17%

8%

11%

10%

Potential rail usage if

capacity adequate

Less than 10%

11-20% Less than

10%

11-20%

21-30%

31-40%

41-50%

>51%

79% of respondents move less than 10%

of goods on rail!

If capacity were adequate, 46% of

respondents would move over 20% of

goods on rail

VS

AND

• Smart partnerships

• Collaboration - Public-private sector engagement key

• Change perceptions

• Think differently

• Clarification on SA transport strategy incl. roles and responsibilities

• Create competitive strategies (companies, industry, country)

What’s the future?

Back to Rail – a Critical Analysis

Thank you