DPE presentation 01 Nov 2023 pride · unity · trust

TFR THEFT / VANDALISM / SABOTAGE
Theft, this has been impacting TFR very negatively and making it impossible to run an efficiently scheduled railway.
Theft is not only happening on the mainlines with regard to overhead wires but criminals are also starting to invade the loco and depots where wagon and locomotive are being stored.
Recently in one of the depots in Pretoria Pyramid South a security Guard were shot at by these criminals / criminal syndicates.
Private security is deployed but it is also very expensive which puts even more strain on the TFR finances.
There has been 5500 security related incidents during the last financial year, very few prosecutions has been finalised and most of these criminals are walking free
TFR will never be able to financially manage to secure their assets without the intervention of Government.
Untu has on numerous occasions proposed that these national asset should be protected by the SANDF. pride · unity · trust
phambili<br>

TFR AVAILABILITY OF LOCOS
Locomotives spares has a major effect on the operational efficiencies of TFR.
The 1064 project was to replace the locomotive fleet but this did not happen because of, amongst others alleged corruption.
The procurement process that is currently use by TFR makes it very difficult to obtain spares which results in the standing of locomotives.
There should be 1857 locos in operation, there is however only 1477 locos available
The D40 fleet is 40 years old (50 in fleet and 32 in operation), way beyond their lifespan, investment is required to get a new fleet pride · unity · trust
phambili<br>

TFR MAINTENANCE OF INFRASTRUCTURE
Maintenance of infrastructure has been non-existent for some time.
The result thereof is the numerous speed restrictions on our railway systems as well as the introducing of abnormal working.
Due to the lack of not doing the maintenance the CTC (Centralised Traffic Control) are struggling to operate as they should.
Numerous depots are authorising trains via the manual system instead of using the lights on the rails.
This causes lengthy delays as trains must continually stop to be authorised. pride · unity · trust
phambili<br>

TE TE & TFR INTEGRATION
TE and TFR integration would leave TE manufacturing without sufficient revenue to sustain itself
TE and TFR integration would place a further financial strain on an already loss-making TFR
SPARES AVAILABILITY
Unavailability of spares (material to fix Locomotives, Wagons) due to rigid procurement processes
Long lead time on waiting for spares to be delivered impacts on ability to service / fix Locomotives / rolling stock
The loss of work /contract for Coaches business due to non-allocation of work on coaches from Prasa (work allocated / taken over by Gibela / Alstom)
Budget allocation in order to carry the maintenance of Locomotives and Wagons, no Service Level Agreement between Transnet Engineering and Transnet Freight Rail (unplanned maintenance not properly scheduled / spread over year) pride · unity · trust
phambili<br>

TE OUTSOURCING WORK
Issues between the Operational Divisions (Transnet Engineering and Transnet Freight Rail) lead to work being given to Alstom which could have been done by Transnet Engineering
Inability of TE to deliver on PRASA requirements lead to PRASA maintenance work being outsourced
EMPLOYEE HEADCOUNT
Unbalanced bargaining unit employee / Management ratios impacting on availability of ground level skills to perform required work
Finance dictates to operations on headcount instead of operations dictating headcount required in order to deliver on required outcomes / available work
Management versus Bargaining Unit ratio, management is top heavy, vacancies are filled at management level but not on bargaining unit level pride · unity · trust
phambili<br>

TE BUSINESS DEVELOPMENT
The discontinuation of Business Development which was the instrument of the business that was looking for additional work for Transnet Engineering
THEFT AND VANDALISM
Theft and vandalism is a great concern which is impacting on productivity and revenue generation / creation pride · unity · trust
phambili<br>

TPT SHIFT PATTERN
TPT shift pattern, working hours and rest periods in the ports where the 4-shift pattern has not been implemented is non-compliant to the BCEA (Ngqura, Port Elizabeth Container Terminal, Port Elizabeth Car Terminal, Cape Town wholistically, Durban Container Terminal, Durban Car & Break Bulk Terminal)
Non-compliance to the collective agreement signed by Transnet and UNTU to implement the 4-shift pattern in all the ports
INCENTIVE SCHEME
Incentive scheme that is implemented currently does not take into consideration equipment condition making reaching targets unachievable
Previous incentive system worked CTOC however full amount is not used to reward employees, Transnet retains about 80% pride · unity · trust
phambili<br>

TPT VOLUMES
Insufficient volumes available in Ngqura
Operating model in Ngqura is wrong
Containers are handled at massively discounted rates
Dbn charges R2500 per container, Ngqura charges R500 per container
INFRASTRUCTURE
Some equipment (ship to shore cranes & Straddle carriers) are way beyond their life span
Equipment / Spares not available (in PE only 50% of Straddle carriers are operational)
Surfaces on which straddle carriers operate is in poor condition
Mooring master in Ngqura not operational since 2018 Transnet has spent R300 million and is still not working, want to spend another R20 million with TE to fix it. Expertise does not exist in TE pride · unity · trust
phambili<br>

TPT ANTIQUATED TECHNOLOGY
Using manual administrative / paper-based systems to
No ship to shore crane stabilizing systems being used (Germany / Italy)
TRAINING / SKILLS UPLIFTMENT
Training simulator is available to train Lifting machine operators, however not used
When crane operation is dangerous / impossible (windy days) people are sent home instead of upskilling and training
Experienced people left when VSP’s was made available during 2021/2022
Lack of equipment for training
Ship to shore cranes
Rubber Tyre Gantry
Straddle Carriers
Lack of trainees as lifting machine operators pride · unity · trust
phambili<br>

TNPA TUGBOATS
There is not enough Tugboats available in all of the Ports to service incoming and outgoing vessels Tugboats beyond their lifespan
Customers prefer using the Mozambiquan Ports as the service level that they receive enables a much faster turnaround time for vessels
The poor TFR infrastructure is impacting further on turning around vessels thus forcing TNPA to pay penalties on delayed vessels
Poor service levels / turnaround times impacts on consumer confidence forcing customers to utilize neighboring countries’ Ports
Poor road infrastructure / badly maintained road infrastructure and poor road freight planning (staggered loading during day and night) gives rise to road congestion and delayed dispatch of trucks
Vandalism on rail infrastructure resulted in increased road freight, vandalism can be contributed to low efficiencies on the rail infrastructure and lack of effective protection of rail infrastructure
Historic performance agreements with Tugboat pilots required them to only berth …….. Amount of vessels per day even though more capacity did exist historically pride · unity · trust
phambili<br>

TNPA BERTH DEEPENING
Berth deepening was supposed to commence many years ago, yet no progress has been made
This impacts on the ability to attract a wider customer base directly impacting on the ability of TNPA and TPT to generate more revenue (accommodate more vessel & bigger vessels in shorter periods of time) pride · unity · trust
phambili<br>

TPL PERMANENT SHIFT ALLOWANCE
The termination of the permanent shift allowance affects 83 of 140 people, each person loses between R8000 to R14000 per month
Employees have relied on this allowance for years to cover their day-to-day living expenses
Unilateral removing of tis allowance will have a severe impact on the affected employees
Labour suggestion to ringfence / make it a non-pensionable allowance and eliminate over time through natural attrition is completely ignored pride · unity · trust
phambili<br>

PRASA Non-compliance to collective agreements
Salary negotiations postponement and failure to implement
Recovery of lines slow
60% recovered
Shacks on railway lines
Overhead component cables infrastructure
Lack of Security
Railway lines at Nastec stolen
MLPS employees sitting at home for years now while getting paid.
VSP process was not executed as planned.
Unavailability of cost-effective public rail transport.
Autopax in business rescue & possibility of non-payment at the end of the month, and going forward. pride · unity · trust
phambili<br>

EMPLOYEE MORALE Slot sales, leasing of corridors has made employees uncertain if they will still be having a job if these private companies are allowed onto our systems.
VSP, a lot of skill were allowed to leave the company. Currently people are being employed in the vacancies and employees feel that the VSP was used to accommodate these new employees.
Constant negative news in the media.
Restructuring process. Employees cannot understand the restructuring process that is ongoing, like the Shared Service, creating Transnet Academy, real Estate to Transnet Property and the newest one TE maintenance to TFR.
National Rail policy implementation, this matter has members very confused as to why Government wants to split TFR as this does not make any sense, Employees are very negative regarding this approach.<br>

EMPLOYEE MORALE Environmental factors impacting on employee health e.g. red iron oxide dust in Saldanha, Coal / Chrome dust in Richards bay, conveyer belts in Richards bay catching fire, etc.
Lack of capacity especially in the maintenance environment due to non-filling of vacancies which causes employees to work excessive long hours without getting sufficient time to rest (TE)
Bullying and victimization of Bargaining Unit employees when they raise their concerns to management (TE)
Lack of development opportunities for Bargaining unit employees
Threats of section 189 by senior managers when they address employees
Lack of visionary leadership
Lack of proper tools to do the job<br>