Transnet has established an Enterprise Development Hub in Saldanha, South Africa to support small businesses and promote economic growth in the region. The hub acts as a "one-stop shop" where small businesses can access financial and non-financial support services from various government agencies located under one roof. These services include procurement assistance, business training, funding and mentorship. Transnet aims to develop local suppliers and entrepreneurs through the hub. The pilot hub in Carlton Centre has already assisted over 2,500 small businesses. Transnet plans to expand this model to other areas of South Africa to support local economic development around its infrastructure projects.

1. Transnet Enterprise Development Hub - Saldanha

2. PAGE
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

3. PAGE
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

4. PAGE
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

5. PAGE
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 Saldanha
Bay 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

6. PAGE
Transnet Enterprise Development Hub - Business Model
5
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

7. PAGE
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
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

8. PAGE
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

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

10. PAGE
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

11. PAGE
Transnet Enterprise Development Hub – Future plans
10
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).

12. 20 Thank You!