Tapping into the value on a transport corridor

“Tapping into the Value on a Transport Corridor”

Nic Cloete-Hopkins, Transport Forum SIGEmnotweni Arena, Nelspruit, 04 February 2016

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Wits Transnet Centre of Systems Engineering: TCSE

Partnering for Systems Solutions

Agenda

• Transport Corridors – perceptions and issues• The Value Chain concept • S-TEAMS what is it?• What is Value?• Tapping into the Value on the Transport Corridor –

Application of S-TEAMS

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Transport Corridors?

Map Source: Mott MacDonald

Transport Corridor – Current Perceptions?

• A transport line in a planning study (i.e. pit-to-port connectivity)

• Primarily facilitating linkage between raw materials and ports for extraction

• Does not create an integrated network of connectivity

• Inefficient and expensive long-haulage solutions

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Transport Corridor – Issues?

• Extraction corridor thinking dominates planning (open vs. closed systems)

– Prioritisation by exporters who control major commodity flows

– Large capital expenditure – high capacity transport infrastructure solutions

– Little consideration given to inter-regional trade

– Balanced trade difficult due to nature of commodities and transport solutions

• Beneficiation rarely considered in planning studies of high-volume commodities

• Low value commodity vulnerability to global market forces

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What is a Value Chain?

VALUE CHAIN is the sequential set of primary and support activities that an enterprise performs to turn inputs into value-added outputs for its external customers. As developed by Michael E. Porter, it is a:• connected series of organizations, resources, and

knowledge streams • involved in the creation and delivery of value to end

customers.

Reference: VentureLine

Definition of a System – our Preference….

From Rechtin, Systems Architecting of Organizations: Why Eagles Can’t Swim:

– “A ‘system’ is a construct or collection of different elements that together produce results not obtainable by the elements alone.

– The elements, or parts, can include people, hardware, software, facilities, policies, and documents; that is, all things required to produce system-level results.”

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The Transport Corridor Value Chain - Segments as a System

Environment

Legislation, Regulatory Bodies and Organisations, Infrastructure

Demand

Producers to Consumers –e.g. people, freight and information

Supply

Transport Capacity (e.g. rail, road, aviation, port and marine)

Adopting S-TEAMS as a Mind-set to Deliver Value to the Transport Corridor

• Systems Thinking• Systems Engineering • Systems Approach(es)• Systems Methodologies• Systems Science

–ATMES

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What is Value?

Merriam-Webster dictionary:• the amount of money that something is worth : the price or

cost of something• usefulness or importance

– BUTValue often has more than monetary meaning e.g.:• My 10-year old car may be worth R2,000 but the value is

similar to that of a new vehicle• The value of reliably moving freight to support the economy

has more value than the monetary contract amounts since it impacts on jobs, infrastructure, social development, education, etc.

Tapping into the Value on the Transport Corridor

“Application of S-TEAMS to elaborate on all the elements to be considered in deliberation

of the System."

Elements for Consideration

• Systems approach – Holistic view– Containing system and System-of-interest

• Systems thinking – Stakeholder viewpoints

• Systems methodologies– Transport development framework (linkages, nodes and

sustainability)• Systems engineering

– Requirements Elicitation, Capture and Management• Systems science

– Multiple disciplines including training and education; environment and sustainability; and multi-engineered solution 12

System of Systems

Sub-Systems

System

Past FutureTemporal

World View

Business

Spatial

Systems Approach –Value Corridor Holistic View

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System of Systems

Sub-Systems

System

Past FutureTemporal

World View

Business

Spatial

Systems Approach –Value Corridor Holistic View

Zesfontein - Slimesdam 59Slimesdam - Delmas 85

Delmas - Dryden 72Dryden - Ogies 72

Ogies - Saaiwater 52Saaiwater - Kromklip 117

Kromklip - Bezuidenhoutsrus 85Bezuidenhoutsrus - VanDyksdrif 78

VanDyksdrif - Blinkpan 52Blinkpan - Broodsnyersplaas 59

Broodsnyersplaas - Gelukplaas 55Gelukplaas - Halfgewonnen 59

Halfgewonnen - Hamelfontein 55Hamelfontein - Ermelo Werf 72

Ermelo Werf - Panbult 26Panbult - Iswepe 69

Iswepe - Piet Retief 47Piet Retief - Paulpietersburg 39

Paulpietersburg - Vryheid East 33Vryheid East - Ulundi 46

Ulundi - Nsese 51Nsese - Richards Bay 32

Coal Line

Ops

Slo

ts

32% 33% 34% 35% 37% 38% 40% 41% 43% 44% 46% 48% 49% 51% 53% 55% 58% 60% 62% 65% 68% 70% 73%

22% 23% 24% 25% 26% 27% 28% 29% 30% 31% 32% 33% 35% 36% 37% 39% 40% 42% 44% 45% 47% 49% 51%

23% 24% 24% 25% 26% 28% 29% 30% 31% 32% 33% 35% 36% 37% 39% 41% 42% 44% 46% 48% 50% 52% 54%

20% 21% 21% 22% 23% 24% 25% 26% 27% 28% 29% 30% 32% 33% 34% 36% 37% 39% 41% 42% 44% 46% 48%

43% 45% 47% 50% 52% 58% 59% 61% 63% 65% 67% 69% 71% 73% 76% 78% 81% 84% 87% 91% 94% 97% 101%

21% 22% 23% 24% 26% 28% 29% 30% 31% 32% 32% 33% 34% 35% 36% 38% 39% 40% 42% 43% 44% 46% 47%

32% 33% 35% 36% 38% 41% 42% 43% 44% 45% 46% 48% 49% 50% 52% 53% 55% 56% 58% 60% 62% 64% 66%

36% 37% 39% 40% 42% 47% 48% 49% 50% 51% 53% 54% 55% 57% 58% 60% 62% 64% 66% 68% 70% 72% 74%

54% 56% 58% 60% 63% 70% 72% 73% 75% 77% 79% 81% 83% 85% 87% 90% 92% 95% 98% 101% 104% 108% 111%

49% 50% 52% 55% 57% 64% 65% 66% 68% 69% 71% 72% 74% 76% 78% 80% 82% 84% 87% 89% 92% 94% 97%

65% 67% 68% 70% 73% 79% 80% 81% 83% 84% 86% 87% 89% 91% 93% 95% 97% 100% 102% 105% 108% 111% 113%

69% 70% 72% 73% 76% 81% 82% 84% 85% 86% 88% 89% 91% 93% 95% 97% 99% 101% 103% 106% 109% 111% 114%

75% 76% 78% 80% 82% 88% 89% 91% 92% 94% 95% 97% 99% 100% 102% 105% 107% 109% 112% 114% 117% 120% 123%

61% 62% 64% 65% 67% 72% 73% 74% 75% 77% 78% 80% 81% 83% 85% 86% 88% 90% 93% 95% 98% 100% 103%

102% 105% 108% 111% 115% 122% 125% 127% 130% 133% 137% 140% 144% 148% 152% 157% 161% 166% 172% 178% 184% 190% 196%

40% 41% 42% 43% 45% 48% 49% 50% 51% 52% 53% 55% 56% 58% 59% 61% 63% 65% 67% 69% 72% 74% 76%

61% 63% 65% 66% 69% 73% 75% 76% 78% 80% 82% 84% 87% 89% 92% 95% 98% 101% 104% 108% 112% 115% 119%

74% 75% 78% 80% 83% 88% 90% 92% 94% 97% 99% 102% 105% 108% 111% 114% 118% 121% 126% 130% 135% 139% 144%

88% 89% 92% 95% 98% 104% 107% 109% 112% 115% 118% 121% 124% 128% 132% 136% 140% 145% 150% 155% 161% 166% 172%

65% 67% 69% 71% 73% 78% 79% 81% 83% 85% 88% 90% 93% 95% 98% 101% 105% 108% 112% 116% 120% 124% 128%

59% 60% 62% 64% 66% 70% 72% 74% 76% 78% 80% 82% 84% 87% 89% 92% 95% 98% 101% 105% 109% 112% 116%

65% 68% 72% 75% 79% 82% 86% 91% 95% 100% 105% 110% 115% 121% 127% 134% 140% 147% 156% 164% 173% 181% 190%

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

2036

2037

Zesfontein - Slimesdam 59 25% 24% 24% 25% 27% 28% 29% 30%

Slimesdam - Delmas 85 18% 17% 17% 17% 19% 19% 20% 21%

Delmas - Dryden 72 19% 18% 17% 18% 19% 20% 21% 22%

Dryden - Ogies 72 17% 16% 15% 16% 17% 17% 18% 19%

Ogies - Saaiwater 52 34% 32% 32% 34% 36% 37% 38% 41%

Saaiwater - Kromklip 117 17% 16% 16% 17% 18% 18% 19% 20%

Kromklip - Bezuidenhoutsrus 85 26% 24% 25% 26% 27% 28% 29% 31%

Bezuidenhoutsrus - VanDyksdrif 78 29% 27% 28% 29% 30% 31% 32% 35%

VanDyksdrif - Blinkpan 52 48% 45% 47% 49% 51% 52% 54% 55%

Blinkpan - Broodsnyersplaas 59 44% 41% 44% 46% 47% 48% 50% 50%

Broodsnyersplaas - Gelukplaas 55 54% 50% 54% 56% 58% 59% 61% 64%

Gelukplaas - Halfgewonnen 59 51% 47% 51% 53% 55% 56% 58% 64%

Halfgewonnen - Hamelfontein 55 58% 54% 59% 61% 63% 64% 66% 71%

Hamelfontein - Ermelo Werf 72 48% 45% 49% 51% 52% 53% 55% 59%

Ermelo Werf - Panbult 26 81% 75% 78% 81% 84% 86% 89% 97%

Panbult - Iswepe 69 31% 29% 30% 31% 32% 33% 34% 38%

Iswepe - Piet Retief 47 48% 45% 46% 48% 50% 51% 53% 58%

Piet Retief - Paulpietersburg 39 58% 54% 55% 58% 60% 61% 63% 70%

Paulpietersburg - Vryheid East 33 69% 64% 65% 69% 71% 73% 75% 82%

Vryheid East - Ulundi 46 52% 48% 49% 51% 53% 54% 56% 61%

Ulundi - Nsese 51 47% 43% 44% 46% 48% 49% 51% 56%

Nsese - Richards Bay 32 59% 53% 43% 45% 48% 51% 53% 60%

Coal Line

Ops

Slo

ts

2007

2008

2009

2010

2011

2012

2013

2014

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Systems Approach –The Value Corridor (incl. Transport Corridor)

Nodes

Land

Utilities

Skills

Logistics

Rail

Aviation Road

Port & Marine

Systems Thinking – Stakeholder Viewpoints

Systems ViewpointArticulate legislation, regulations,

policy, guidance, constraints and forecasts

Operational ViewpointArticulate operational scenarios, activities and information flows

Acquisition ViewpointArticulate customer and programme

dependencies, milestones and statuses

Technical ViewpointArticulate the solution specification –standards, resources, functions and

interactions

Strategic ViewpointArticulate high-level requirements for

enterprise change over time –capabilities, goals, enduring tasks, etc.

All ViewpointsProvide information pertinent to an

architecture


All Viewpoints

Acquisition Viewpoint Technical Viewpoint

Operational Viewpoint

Strategic Viewpoint

Systems Viewpoint


All Viewpoints

Acquisition Viewpoint Technical Viewpoint

Operational Viewpoint

Strategic Viewpoint

Systems Viewpoint

Systems Methodologies –Transport Development Framework (Linkages)

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Systems Methodologies –Interchange Development Framework (Nodes)

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TIER 3 OPPORTUNITIES


Value Added Logistics ServicesWarehousing; customs; quality control; packaging; break-bulking;

freight clearing & forwarding; truck stops; maintenance and repair services; fuel supply; light manufacturing (assembly)

Commercial and Financial ServicesFinancial institutions; security services; offices & administration;

accommodation; retail; restaurants; insurance

Basic Logistics ServicesIntermodal transfer; loading and unloading; handling and

transhipment; dry bulk palletising; liquid bulk; general stacking; storage; parking and staging

Source: Adapted from Transnet Freight Rail

TIER 2OPPORTUNITIES


Core Infrastructure

Industrial ServicesHeavy industrial activities; industrial processing; beneficiation;

manufacturing; component and product assembly

Density at nodes create a sustainable value proposition.

Systems Engineering –Requirements Elicitation, Specification and Analysis

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– Follow a documented requirements process

– Consider all stakeholders and viewpoints

– Capture all requirements– Analyse and refine the

requirements– Ensure each requirement is

testable– Specify the requirements– Review the requirements– Maintain traceability– Manage the requirements

Requirements

Qualification/AcceptanceCriteria

Systems Science –Integration of Engineering, Society and Nature

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Land

Utilities

Transport Network

Policy / Regulation

SkillsTIER 3

OPPORTUNITIES


TIER 2OPPORTUNITIES


Core Infrastructure

Transport corridor cannot exist on its own!

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Value Corridor (incl. Transport Corridor)

• Provides longitudinal linkages between points of value generating density

• Enables and creates a regional market through connectivity of nodes(e.g. dry and marine ports)

• Leveraging viability of infrastructure to achievement sustainability(incl. the interchange nodes)

Core Infrastructure



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COST

Viable section Barely viable Not viable (on its own)

Core Infrastructure

Core Infrastructure

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Summary: Elements for Consideration

• Understanding of systems (e.g. holistic view of the system) throughout the enterprise ensuring we can ask the right question

• What is MY containing system and what is my (current) SYSTEM of INTEREST

• Building richest possible picture – capturing all stakeholder viewpoints• Value requires understanding and implementing the all elements within

the Transport and Interchange Development Framework• Using systems engineering tools to develop integrated systems

(e.g. requirements elicitation, specification and analysis)• Integration of Nature, People and Engineering to ensure the real Value

is achieved – not just monetary• Skills and knowledge transfer: S-TEAMS

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Thank youNic [email protected]+27 (0)79 864 5621

mailto:[email protected]

Automotive

Tapping into the value on a transport corridor