PUBLIC ENTERPRISES PROGRAMME TRANSPORT ENTERPRISES 2008 2011 STRATEGIC
PUBLIC ENTERPRISES PROGRAMME - TRANSPORT ENTERPRISES 2008 -2011 STRATEGIC PLAN AND FINANCIAL OVERVIEW 27 -29 FEBRUARY 2008
Sub. Programme Activity / Project Critical Path Activities Output Corporate Plan (Submitted by Feb 08) Assess progress with implementation of Briefing Memorandum: A critical assessment of the business plan Letter to Chairman of Board Transnet Shareholder Compact SOE team to drive the process of putting an annual updated compact into place: Review the strategic intent statement Review and benchmarking of SKPI’s Approval of SKPI’s for the Shareholder Compact Ensure signoff from Governance Signed Shareholder Compact Decision Memorandum: Agreed Shareholder Compact SOE Dashboard: Monitoring of Transnet Performance Quarterly update of Transnet Dashboard Database Updated Transnet Dashboard (latest information) Annual Report Analysis and assessment of annual report Memo to DG and Minister on assessment Review of Board strength Analyse board strength and make Memo to DG and Minister Investment Oversight strategy, Assess alignment of budget with strategy Annual review of financing and funding plans Proposals/Recommendations for corrective measures. recommendations in respect of new challenges faced by organisation Quarterly Report (Q 1) Submission by Transnet of its 2008 Q 1 Report by Aug 2008 Quarterly Report (Q 2) Submission by Transnet of its 2008 Q 2 Report by Nov 2008 Briefing Memorandum: Critical assessment of performance including major risks Strictly confidential 2
Activity/Project Critical Path Activities Output Quarterly Report (Q 3) Submission by Transnet of its 2008 Q 3 Report by Feb 2009 Briefing Memorandum: Critical assessment of performance including major risks Engagement with SOE and development of Functional Dashboard development indicators Industry Impact Ports Financial impact of corporatising Transnet National Port Authority (TNPA) Review Transnet and TNPA financial Compliance with National Ports Act, 2005 Review validity of Port Regulations vs port Ngcura (Coega) PSP Receive transaction proposal from Transnet Reach alignment with Transnet Engage DOT and get alignment on statements; Prepare scenarios and modelling exercise; Finalize memo limits Preparations for corporatisation of TNPA (Minister to instruct) Determination of conversion date (in terms of NP Act) transaction Min of Transport to issue public guidelines NPA to issue RFP in terms of guidelines Rail Branchlines strategy / position paper Develop statement of intent for TFR, Railway Supplier study Develop Terms of Reference for the study Undertake tendering process Conduct sector study Prepare final recommendations incorporating branchlines Receive TFR, s branch line strategy; reach alignment with TFR/ Transnet Engage DOT & NT and get alignment on strategy/approach Monitor execution of strategy by TFR/Transnet Memo to DG and Minister on financial impact of corporatising TNPA and recommendations to mitigate risk. Memos to DG and Minister on - Resolution of port limits issue following legal opinion; - Recommended date for conversion process and corporatisation of TNPA Memo to DG and Minister on assessment of Transnet proposal Final memo to DG and Minister on progress with transaction Presentation to DG on TFR branch line strategy; Memo to DG and Minister on branch line strategy and letter to Minister of Transport TORs signed off by DG ; Memo on tender award approved by bidding committee; Final report and memo to DG and Minister Strictly confidential 3
Pipelines Activity/Project Critical Path Activities Output Pipeline tariff study Assessment of NMPP revenue and tariff Report on NMPP business case, tariff levels and policy issues structure NMPP policy process Interaction with DME , NERSA and Transnet to refine policy and regulation issues Enterprise Assessment of Transnet’s level of capitalisation Review Transnet financial statements and Transnet infrastructure sustainability model Phase two of infrastructure funding study Assessment of TFR’s future viability and corporate plan Prepare scenarios and modelling exercise Finalize memo Clear obstacles and address constraints to implementation of Report on Transnet’s income over next 3 years and possible shortfall; Memo to DG and Minister including scenario schedules Phase 2 report and recommendations memo to DG and Minister sustainability Proposal on alternative sustainability model NCPM and key freight customer analysis Undertake customer survey Refine terms of reference and scope of Leading to long range transport sector study in 09/10. project Develop TOR, Appoint consultant, Develop IT platform and supply chain performance per major national corridor. Integrated port and rail master plan + cabinet approval Transnet/DPE to present integrated master plan to Eco cluster depts. Depts. to critically assess and comment Revised master plan tabled and agreed in cluster; cabinet memo to obtain approval to engage provinces, cities and industry stakeholders Economics cluster buy-in, Submission of memo into cabinet process. Monitor Transnet Build programme Strictly confidential 4
Activity/Project Critical Path Activities Output Cabinet memoranda – DPE generated and responding to externally generated Cab Memos Assess and prepare response Draft cabinet memo Interdepartmental consultations Memo to Minister and DG on Department comments on external cab memos Memo and cab memo submitted to DG and Minister Press articles One article per annum Written response to relevant unit (Communications) Assess request and provide Written inputs to project leader (LGRS) to be incorporated into final memo to DG and Minister Ad Hoc (DPE cab memos) Parliamentary questions PFMA Section 52. 2 applications response; Participate in project team discussions re recommendations Provide written inputs to be consolidated into memo to DG and Minister Referrals from Minister and DG Strictly confidential 5
Sub. Programme/ Project : Aviation (SAA) Sub. Programme Activity / Project Critical Path Activities Output Corporate plan review (to be received end of February 2008 Assess progress with implementation of strategy, Assess alignment of budget with strategy Annual review of financing and funding plans Proposals/recommendations for corrective measures. Briefing Memorandum: A critical assessment of the business plan SAA Shareholder Compact SOE team to drive the process of putting an annual updated compact into place: Review the strategic intent statement Review and benchmarking of SKPI’s Approval of SKPI’s for the Shareholder Compact Ensure signoff from Governance Signed Shareholder Compact Decision Memorandum: Agreed Shareholder Compact Annual Report Analysis and assessment of annual report Memo to DG and Minister on assessment, including letter to Chairman of the Board and Mo. F Review of Board strength Analyse board strength and make recommendations in Memo to DG and Minister Investment Oversight respect of new challenges faced by organisation Attend monthly restructuring updates and accounts meetings Receive presentations, discuss, respond and report as Quarterly Report (Q 1) Submission by SAA of its 2008 Q 1 Report by Aug 2008 Briefing Memorandum: Critical assessment of performance including major risks Quarterly Report (Q 2) Submission by SAA of its 2008 Q 2 Report by Nov 2008 Briefing Memorandum: Critical assessment of performance including major risks Quarterly Report (Q 3) Submission by SAA of its 2008 Q 3 Report by Feb 2009 Briefing Memorandum: Critical assessment of performance including major risks Decision memos applicable Strictly confidential 6
Activity/Project Critical Path Activities Output Redesign SAA reporting package Develop, discuss and implement as applicable Redesigned SAA reporting package SAA dashboard development Monitor development and input information as applicable SAA dashboard Long range strategy, ownership, scale of operations and funding alternatives emerging from Seabury process Research, discuss and develop positions Scale of operations review Long range aviation strategy Funding of SAA restructuring package Agree form of guarantee, Monitoring conditions Analyse gap in funding and options and produce supporting SAA has sufficient capital for its needs Industry Impact memos Strategic repositioning of SAAT (South African Airways Technical) Visit of MRO facilities Funding of urgent Capex requirements Establishment as independent entity Develop and fund restructuring plan Property master plan Provisional identification of SEP (Strategic Equity Partners) Restructuring plan Funding Property plan Decision memo Resolve Medium Term Fleet requirements and plan Fleet plan options Decision memo Aerospace project (JPF) / African aircraft leasing company Discuss possible options with interested parties Decision memo Voyager business plan and liability Development of a standalone business plan, Establishment of a standalone business (commercialisation), Corporatization of Voyager and liability mitigation strategies Decision memo Strictly confidential 7
Activity/Project Critical Path Activities Output Strategic repositioning of Mango Assess SAA proposals and review funding Determine DPE view on positioning and future of Decision memo National Treasury funding request Mango Respond to Minister of Finance/National Treasury letter Strategic reposition of SAA Cargo Assess SAA proposals Review constraints on belly freight cargo DPE view on positioning and future of all freighter Decision memo operations SAA ATL Guarantee Annual review of ATL Revised ATL guarantee SAA bilaterals and code share with Emirates Review code share agreement Review 2010 proposal Monitor foreign visitor traffic flow PFMA applications Briefing memo Decision memo on PFMA Role of SAA in airlift implementation plan Follow-up on Minister discussions Develop proposals re Airlift Inputs to Strategy Strategic Planning Committee Briefing memo (SPC) on BASAs Statistical analysis of traffic volume data Develop framework and To. R Report, recommendations Briefing memo Major costs driver review Review of fuel pricing, airport charges, aircraft Report, recommendations Briefing memo leasing charges, navigation costs, etc Strictly confidential 8
Sub. Programme/ Project : Aviation (SAX) Sub. Programme Activity / Project Critical Path Activities Output Corporate plan review (to be received end of February 2008 Assess progress with implementation of strategy, Assess alignment of budget with strategy Annual review of financing and funding plans Proposals/recommendations for corrective measures. Briefing Memorandum: A critical assessment of the business plan SAA Shareholder Compact SOE team to drive the process of putting an annual updated compact into place: Review the strategic intent statement Review and benchmarking of SKPI’s Approval of SKPI’s for the Shareholder Compact Ensure signoff from Governance Signed Shareholder Compact Decision Memorandum: Agreed Shareholder Compact Annual Report Analysis and assessment of annual report Memo to DG and Minister on assessment, including letter to Chairman of the Board and Mo. F Review of Board strength Analyse board strength and make recommendations in Memo to DG and Minister Investment Oversight respect of new challenges faced by organisation Quarterly Report (Q 1) Submission by SAX of its 2008 Q 1 Report by Aug 2008 Briefing Memorandum: Critical assessment of performance including major risks Quarterly Report (Q 2) Submission by SAX of its 2008 Q 2 Report by Nov 2008 Briefing Memorandum: Critical assessment of performance including major risks Quarterly Report (Q 3) Submission by SAX of its 2008 Q 3 Report by Feb 2009 Briefing Memorandum: Critical assessment of performance including major risks Design SAX reporting package Develop, discuss and implement as applicable Redesigned SAA reporting package Strictly confidential 9
Activity/Project Critical Path Activities Output SAX dashboard development Monitor development and input information as SAX dashboard applicable Industry Impact Recapitalisation of SAX Obtain pre-approved funding Restructuring of inter-company account National Treasury request Decision memo Commercial agreement between SAA and SAX SAA & SAX implementation programme for new Decision memo commercial arrangement Expansion and Growth plans – Domestic operations – African operations Consider business plans Assess cooperation agreements with other airlines Demand schedule, aircraft sizing and fleet plan Briefing memo requirements Review of ATL requirement ATL guarantee Hedging policy and s 66 approval Develop policy, respond as applicable Approved SAA and SAX hedging policies Full s. 66 approval fro SAA and SAX Cabinet memoranda – DPE generated and responding to externally generated Cab Memos Assess and prepare response Draft cabinet memo Interdepartmental consultations (DPE cab memos) Memo to Minister and DG on Department comments on external cab memos Memo and cab memo submitted to DG and Minister Press articles One article per annum (each for SAA and SAX) Written response to relevant unit (Communications) Parliamentary questions Assess and prepare response Drafted responses PFMA Section 52. 2 applications Assess request and provide response Participate in project team discussions re Written inputs to project leader (LGRS) to be incorporated into final memo to DG and Minister SAX ATL Guarantee Ad Hoc (SAA and SAX) recommendations Provide written inputs to be consolidated into memo to DG and Minister Referrals from Minister and DG Assess and prepare response Drafted responses Strictly confidential 10
THANK YOU
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