tapping into the value on a transport corridor
TRANSCRIPT
“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
Systems Thinking – Stakeholder Viewpoints
All Viewpoints
Acquisition Viewpoint Technical Viewpoint
Operational Viewpoint
Strategic Viewpoint
Systems Viewpoint
Systems Thinking – Stakeholder Viewpoints
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
TIER 4 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
TIER 1 OPPORTUNITIES
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 4 OPPORTUNITIES
TIER 2OPPORTUNITIES
TIER 1 OPPORTUNITIES
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
TIER 3 OPPORTUNITIES
TIER 4 OPPORTUNITIES
TIER 2OPPORTUNITIES
TIER 1 OPPORTUNITIES
Core Infrastructure
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Core Infrastructure
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Core Infrastructure
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Core Infrastructure
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Core Infrastructure
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COST
Viable section Barely viable Not viable (on its own)
Core Infrastructure
Core Infrastructure
Core Infrastructure
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Core Infrastructure
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TIER 3 OPPORTUNITIES
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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