SMME SEMINAR Presented By: Tenjwase Gumede Phone: September 2013 PAGE

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1 SMME SEMINAR Presented By: Tenjwase Gumede Phone: September 2013 PAGE 1

2 What does Transnet do? Transnet is an integrated Freight transport and logistics company with 5 Operating divisions and a number of support businesses. We are the largest freight logistics company in Southern Africa. We deliver goods throughout South Africa, Africa and the world. Goods are transported through our ports and on rail and fuel through our pipeline. PAGE 2

3 Transnet s 5 Operating Divisions Transnet Freight Rail- TFR (formerly Spoornet) General Freight business (general goods, farm produce, etc.) Bulk transport of main commodities (iron ore, coal) for export or internal use Transnet Engineering- TE- (formerly Transwerk and TRE) Rolling stock and maintenance business Transnet National Ports Authority- TNPA- (formerly Portnet and NPA) Fulfils the landlord function for South Africa s Ports systems Transnet Ports Terminals- TPT- (formerly Portnet and SAPO) Managing port and cargo terminal operations in the nation s leading ports Transnet Pipelines- TPL- (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 PAGE 3

4 Transnet s Supplier Development strategy is aligned to Government s developmental objectives Government Objectives Increase the employment intensity of the economy Facilitate diversification beyond our current reliance on traditional commodities and nontradable 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 Transnet SD strategy 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/ preservation Rural integration Enterprise development Localisation Technology Transfer Source: SD strategy PAGE

5 How does Transnet buy its Goods and Services? Mainly through the open tender system Advertisements Low value items through the quotation method Fax quotes Request For Quotation Sometimes once-off delivery Sometimes contracts for a specific period or specific value or both (as and when required) PAGE 5

6 Where are tenders advertised? Transnet tenders are normally advertised in the following publications: National Newspapers (e.g. Sowetan, Sunday Times, City Press, New Age, etc.) Local Newspapers. Tender Bulletins. OD Websites (some ODs display their tenders- moving towards a single Transnet tender website) CIDB website for engineering & construction tenders Tender notice boards at Transnet offices PAGE 6

7 Where can you collect tenders? In order to tender, you must collect a copy of the tender document from the Transnet contact person (as indicated in the Tender advert). In certain cases Transnet may charge for the tender form in order to recoup the costs of advertising and other administrative costs. You are entitled to view the tender document first before deciding to take / buy the document. Advertisement will indicate, amongst others;- the contact person and address for tender collection; the last day for collection (if applicable); the non-refundable cost of the tender document (if applicable); the date of a tender briefing / site visit (if applicable); the closing date and time You will have to show proof of payment when collecting the tender. PAGE 7

8 Transnet Tendering Process at a Glance Tender is advertised Newspaper/s Tender bulletin board Internet Peruse tender and collect copy if interested Provide proof of payment when necessary Attend briefing session / site visit where necessary Ensure that attendance certificate is signed Assemble the relevant documents, in-formation, costing Complete the tender form Deliver the tender before the closing time on the closing date In tender box; or Deliver to Acquisition Council Secretary If successful, the award of business will be communicated and a contract will be signed Unsuccessful tenderers are informed who got the business and on what aspect they had failed Price B-BBEE Technical Provide goods and services as tendered Service Level Agreement (SLA) PAGE 8

9 Tips for successful tendering Do your homework and start early Get a copy of the tender documents as soon as you can, preferably on the day the tender is issued to the market. (You can read a draft tender document before deciding to buy the document.) Give yourself enough time to plan and prepare your submission. Review and understand the requirements Read the tender document carefully and thoroughly. Attend any scheduled briefing session and ask questions if the information is unclear. If you need further help or clarification, ask the Transnet contact person, mentioned in the tender document. Make sure you have all the requested accreditations and documents. Read the contract terms and conditions and make sure you can comply. PAGE 9

10 What could disqualify a tender response The failure to attend compulsory site/clarification meeting. Unsigned tender documents. Tenders deposited after the closing time and date or at the wrong address. Failure to submit returnable documents asked for e.g. original valid tax clearance or B-BBEE certificate. Being blacklisted from doing business with Transnet or Government. No CIDB registration for required grading for construction tenders. Non-compliance with or contravening legislative provisions. Not signing a non-disclosure agreement where this was a requirement. Not complying with material forms and conditions of tender. Not quoting a price. Misrepresentation of facts. Fraud and corruption. Failure to declare an interest. Other breaches of law. PAGE 10

11 Ou Registering as a Transnet vendor Important documents! A valid Tax Clearance certificate Original Cancelled cheque OR a letter from the bank verifying banking details (with the bank) stamp on it Certified ID documents of the shareholders/directors/members where applicable Certified copy of certificate of incorporation CM29/CM9/CK1/CK2 If CC Additional co. letter head confirming both physical, postal addresses, Contac details Valid BBBEE certificate with the SANAS Logo on it OR a signed letter from either the Auditor/Accountant confirming most recent annual turn over *BBBEE and Tax clearance certificates* Both documents are valid for a year It is advisable to start the process of re-applying for new ones well in advance before the stated expiry date to ensure TRANSNET has your updated documents on our system Vendor s are encouraged to go through the following website and get details on how to get on to Transnet s database: PAGE

12 1 Key commodities with potential SD opportunity have been identified within Transnet s Capex programme... Asset Group Key commodities with potential SD opportunity* Locomotives, Parts & Spares New locomotives Bogies Wheels Couplers Draw gear Ventilation systems Control systems Traction motors Coach components Axles Brake systems Wagons, Parts & Spares Brake systems Pressure vessels Axles Steel Bearings Wheels-34 Draft gear Draw gear Wheels-36 Long Term Parts Agreements Infrastructure, Materials & Services (Perway) Rail Ballast Sleepers Transformer installations Signalling installation Fasteners Overhead track equipment Overhead track wire On track machines * List is not exhaustive Source: MDS Consol document; Team analysis PAGE 12

13 1 Key commodities with potential SD opportunity have been identified within Transnet s Capex programme... Asset Group Key commodities with potential SD opportunity* Port Facilities Berths Quays Straddle carriers Tug boats Civil works Cranes (RTG, RMG, STS) Haulers Dredgers Ship loaders Ship unloaders Marine craft IT systems Land, Buildings & Civil Infrastructure Terminals Cement Building maintenance Civil works (roads, bridges) Land acquisition Building materials Machinery & Equipment Fleet Mechanical equipment Lighting Forklifts Telemeters & radios Carbon brushes Gas pumps Pipelines Pipeline Total Capex 300,2 * List is not exhaustive Source: MDS Consol document; Team analysis PAGE 13

14 2 and similarly with our Opex spend Asset Group Opex Spend Rbn Key services with potential SD opportunities* Limited procurement leverage Fuel Marine Traction On road Home based Other operating costs Security Fleet Insurance Human Capital Ads & promos Travel Consulting Telecoms Office automation Repairs & maintenance Tools Paint Stevedoring Equipment rental Labour brokers Dredging services Total Opex 301,1 * List is not exhaustive Source: Transnet Shareholders compact; Team analysis PAGE 14

15 Transnet has also established numerous ED initiatives ED initiative Transnet ED Hub Project cost Description Rm The Hub is to ensure that Transnet creates an enabling environment for SME s to access products and services that are 60 offered by both Provincial and National ED Institutions Duration yrs 3 Developmental loan facilities A Public Private Partnership to ensure that procurement and ED business opportunities are channelled to black SME suppliers Itireleng Fund (in partnership with GEP) The fund is aimed at encouraging participation of SMEs in certain growth sectors, namely Green economy, Agri-processing, Manufacturing (steel related industries) and construction 24 2 Transnet- Shanduka Black Umbrellas Business Incubation A collaborative solution to incubate 100% black owned SMEs which meet Transnet s supply chain needs 30 2 Transnet-Seda Supplier Development Programme The fund is aimed at strengthening the performance of supplier firms and enabling them to be globally competitive 1 3 Transnet Canteen Project An initiative set up to accelerate the development of SMEs by offering premises and assisting with equipment 3 Source: Transnet ED initiatives; Team analysis PAGE

16 CONTACT DETAILS TRANSNET ED HUB PHONE: PAGE 16

17 Thank You PAGE