Transnet Freight Rail Issues RFP For New Operating Model To Integrate Infrastructure Management Function
Transnet Freight Rail (TFR) is a vertically integrated freight railway operator, providing both railway infrastructure and logistics operations to customers. Under the new proposal, TFR will need to separate into a rail infrastructure manager and a train operator.
South Africa’s National Rail Policy (NRP, 2022) has laid the foundation for a significant change in the country’s rail system. With the aim of promoting access for third-party operators to the Transnet Freight Rail (TFR) railway infrastructure network.
During his State of the Nation address on February 9, 2023, President Ramaphosa emphasized the development of a Transnet Roadmap to translate policy commitments into reality. This includes the restructuring of TFR to create a separate Infrastructure Manager for the rail network by October 2023. Currently, TFR is a vertically integrated freight railway operator, providing both railway infrastructure and logistics operations to customers. Under the new proposal, TFR will need to separate into a rail infrastructure manager and train operations.
To achieve this, TFR has adopted a phased implementation plan for the “Infrastructure Manager”, beginning with finalising and approving the organizational architecture to support commercial separation, followed by the launch of the Infrastructure Manager Function and Structure within TFR.
TFR has issued a Request for Proposal (RFP) to obtain priced proposals from experienced and reliable organisation design companies in the Human Resources sector. The objective is to ensure that as the Infrastructure Manager Function is established, all other TFR support structures and the overall TFR organizational structure are reviewed. The period of execution for this project is expected not to exceed twelve months.
Transnet seeks a partner to provide solutions for its organizational design requirements and improve its current processes for providing services to its end-user community across various locations. The selected service provider must share Transnet’s mission and business objectives, striving to meet contractual requirements and new challenges through teamwork, joint participation, flexibility, innovation, and open communication.
Transnet hopes to benefit from this partnership in various ways, including reduced acquisition costs, improved service benefits, streamlined service processes, proactive improvements in service provision, strengthened competitive advantage through leading-edge technology and service delivery systems, and enhanced end-user support.
The successful respondent must deliver a range of requirements, such as the review of TFR’s Business and Operating Model, design of the Infrastructure Manager Structure and architecture, alignment of resource structure with international best practices, review and alignment of the People Management/HR strategy, development of a people management plan, and leading the implementation of the designed and approved Infrastructure Manager structure.
In addition, the service provider will need to develop job profiles, a resourcing plan, revise related policies and procedures, create an implementation plan for the new organizational structure and operating model, and develop a change management and communication strategy. The project plans should include milestones, deliverables, and lessons learned, reflecting the scope and objectives of this significant organizational redesign.
The RFP was issued on Monday, 24 April 2023. The closing date is Monday the 17th of May. A non-compulsory pre-proposal RFP briefing will be conducted virtually via Microsoft Teams on 3 May 2023, at 10:00 am.