Description
Presentation explain northwest transport investments the re awakening of a titan.
85 84
NorthWest Transport
Investments
The re-awakening of a Titan
N
orthwest Transport Investments (Soc) Ltd (NTI)
is a public entity solely owned by the North West
Provincial Government and listed in the Public
Finance Management Act as a Schedule 3(d) entity. The NTI
Group, through its subsidiaries North West Star (NWS) and
Atteridgeville Bus Service (ABS), provides bus transportation
services in the North West and Gauteng Provinces.
The operational focus of the group is largely on commuter transport,
which is operated through the NWS subsidiary in the City of Tshwane.
The subsidiary operates more than 670 buses, transporting approximately
32 million people over 34 million kilometres per annum.
As part of its growth and revenue diversi?cation strategy, the NTI
Group has established a business development unit that has started to
offer consultancy services to municipalities and small operators. The idea
is to expand the product offering of the company and thereby reduce
the group’s dependency on commuter contracts, which are currently
subjected to uncertainty brought on by the government’s Integrated
Public Transport Network.
In a Q&A interview with Leadership magazine, CEO of the NTI Group, TJ
Letselela, discussed the company’s business aspirations and challenges. He
is the ?rst CEO of the Group after it was taken out of judicial management
and was tasked with the responsibility of turning around the business.
How did you deal with the transition from judicial management
to normal operations?
TJ: The process was very challenging. We were confronted with high
expectations and, in some cases, skepticism. The workers saw an
opportunity to claim bene?ts they had lost over the years due to judicial
management, while the suppliers saw a gap to increase prices because
the company was now perceived to be liquid.
Together with the Board, we embarked on stakeholder road shows to,
inter alia, explain to them the need to stabilise the company and build
operational sustainability. We had to be transparent and open our books
to show the delicate balancing act we had to do. Fortunately, we have
a very progressive workers union (SATAWU), which understands our
strategic intent, so we managed to ?nd each other.
How did you deal with actual transformation in management
echelons and the supplier base?
TJ: One of the oddest things we found when we took over was the
fact that a company wholly owned by the government was the most
unrepresentative of the demographics of our country at management
level. We found a situation where 70% of senior management at head
of?ce was male and white; in addition, 81% of managers and departmental
heads in all depots were white and male.
The skewed picture also manifested itself in the spending patterns of
the company where over 86% of the company spend was to white-owned
companies and original equipment manufacturers with insigni?cant
empowerment representation.
We are pleased that in just two years, the picture of the company has
signi?cantly changed. We have 63% black representation in management.
A black female, Bukeka Mahlutshana, who is in charge of all commuter
operations under NWS, holds the second highest position in the Group
as General Manager of NWS. The company has placed several women
on development programmes to prepare them
for senior positions.
Equally, we have made signi?cant progress in
transforming the procurement patterns of the
company. We are currently spending just over
R20-million in HDI-owned suppliers, and over
R10-million in women-owned suppliers. Our
target, which is now policy, is to spend R50-
million in women-owned companies per annum.
How con?dent are you of success, with
the transport industry currently facing so
many challenges?
TJ: These days, companies are reviewing their
strategies and operating models. The focus is on
issues such as talent, innovation and collabora-
tion to ?nd new sources of revenue, growth and
competitive advantage – NTI is no different.
We are particularly con?dent of success
because we are currently operating at just 60%
of our potential in terms of product offering
and therefore there is much scope for growth
and innovation.
The NTI Group is known and (mistakenly)
regarded as a bus company, whereas it is a
transport investments company. NWS under
Starline brand and ABS are the ones operating
buses, and not NTI as a whole.
We have also refreshed our brand to help
shed our past image of a struggling company
under judicial management – which, by the way,
lasted for about 10 years.
Which part of the company can expect the
most signi?cant amount of growth in the
next few years?
TJ: The Business Development Unit will de?-
nitely experience more growth as we reinvent
ourselves as a premium transport company, by
offering services in the transport management,
transport research and bus body building sectors.
I will personally be monitoring these aspects of
growth, as they link directly to our ambitious
long-term plan to make the NTI a market leader
in transport services and product offering.
Without giving away too much, we are
considering several offers to jointly build bus
bodies in our premises. NTI owns the biggest
bus body manufacturing facility in the country
– a nine-hectare property with a 1.6-hectare
under-roof manufacturing plant. This facility
(known as Durabuild) used to produce more
than 40 bus bodies per month before the
company was put under judicial management
in the late 1990s.
We are also in discussion with the North
West Provincial Government to take over the
Ma?keng International Airport and Pilanesberg
Airport. We have put a strong case that, as a
provincial transport investments company, we
are the right entity to manage the provincial
airports, and so far the authorities are receptive
to the idea but, of course, we have competition
from other entities in the province.
How will you identify, engage and
empower the talent that will distinguish
your business from its competition?
TJ: Currently, NTI runs an accelerated develop-
ment programme targeted at senior and middle
management. It is designed to push more
women and youth into executive and leadership
roles in the next three to ?ve years. We have
established our internal guidelines for talent
and potential identi?cation. The trick is to avoid
pushing numbers at the expense of quality.
We also have a trainee female driver pro-
gramme that we started last year, which trains
female bus drivers from disadvantaged back-
grounds. We will further open opportunities for
them to rise within the company ranks to become
inspectors and superintendents. This clearly dif-
ferentiates us from our competitors as a company
offering a well-de?ned career path for women.
How do you plan to revitalise your
operations to cope with change while
keeping costs under control?
TJ: Cost containment is a priority for the Group
in the current ?nancial year. We are starting
collaborations with stakeholders to achieve our
strategic goals, which are essentially focused
on cost containment, revenue growth and
increased quality service. This will be done
through strategic alliances, joint ventures,
cross-border operations, acquisitions and
outsourcing of some business functions.
In the last two years of operation, we have
already reduced costs of running the business
year-on-year by simply negotiating better deals
with suppliers, disciplined use of material, and
review of certain processes in the business
value chain.
We have also started with the bus replenish-
ment programme to enhance our capacity to
deliver commuter services under NWS and ABS.
With close to 100 new buses already introduced
in the ?eet, the passengers have already shown
appreciation by returning to our buses.
How does NTI plan to take advantage
of the opportunities created by the
government’s new transport plans?
TJ: At NTI level, we are strongly lobbying for par-
ticipation in the new transport plans including
the bus rapid transit systems in Tshwane and
Rustenburg. There are currently more opportu-
nities in areas of consultancy and management
for the implementation of new transport plans.
We have internally geared ourselves to take
advantage of the available opportunities and
also use our status as state-owned entity to play
a leading role in the implementation process.
How does NTI plan to address concerns
around issues of environmental
sustainability?
TJ: Customers and government alike agree that
sustainability is key to economic growth and
competitiveness. As a result, NTI ?nds that its
environmental and corporate responsibility
practices are under a microscope.
NTI has adopted eco-friendly changes to the
way it does business. Bearing in mind that
we operate a 700-strong ?eet of buses, we
are expected to contribute toward reducing
carbon emissions.
We have undertaken an energy audit, devel-
oped an action plan and we will continue to
review our actions to ensure compliance with
environment laws. We have considered all
C
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TJ Letselela, chief executive officer
86
aspects of our business, namely what types
of fuel and spares we are using and whether
they contribute to increased emissions. When
we dispose of used oils and material from our
centres, we ensure that environmental concerns
are considered.
Is there anything you want to say to your
stakeholders about the changes you are
making at NTI?
TJ: ‘We are re-awaking a titan.’ The process
de?nitely requires our collective effort and
unity of purpose. We need to draw from good
memories of this group during its past glorious
days operating across the country. We need
to double our efforts to reverse the negative
patch in our history when we had to be placed
under judicial management. In short, we have
lessons from which to draw and new vigour to
build an even better operation.
We therefore need all the support to con-
quer this massive task, particularly from
our employees who are at the centre of our
turnaround strategy. We continue to value
their contribution and thank them for the
past sacri?ces made, which possibly saved the
company from liquidation during the judicial
management period.
How are you going to ensure return
on investment for the NWPG as a
shareholder?
TJ: It is true that the NWPG has invested a lot in
this Group over the years. In fact, this may be
the biggest investment the province has ever
made in an entity.
Equally, this is one of the few entities owned
by the province with a potential to sustain itself
and even declare pro?ts. We strongly believe
that it is time the institution provides value
for money, and this is clearly re?ected in our
ambitious plans.
Our Premier, Mme Thandi Modise, has been
unequivocal in calling for economic devel-
opment in the province. She outlined great
infrastructure plans for the province, which
requires ?nancial and human capital to achieve.
We intend to position this entity as one of the
big economic development propellers in the
province. We will focus more on job-creating
projects and work toward turning pro?ts, which
will in turn boost the Provincial Treasury’s
funding of infrastructure projects.
How is NTI’s relationship with
stakeholders such as passengers
and unions?
TJ: We have taken an approach that says
‘anything for stakeholders with stakeholders’,
meaning that we will always consult to ensure
we deliver service and products as required
by the clients. We have a standing consulta-
tive meeting with the passenger forum to get
their views on our buses and service in gen-
eral, and this has led to our passengers being
receptive and understanding when we have to
increase fares.
We have included the labour representatives
in all committees of the institution, including
procurement, to get their inputs but also to
be transparent on how we do things. We have
taken a principled stance and agreed with them
(union) that there will be times when we have
to agree to disagree – but the interest of the
company must always be put ?rst.
The working relationship and mutual respect
has been great. We appreciate their maturity,
which directly led to our success in stabilising
the company. We have never lost one day’s work
due to labour unrest since we took over.
How supportive has the Board been to
management’s initiative?
TJ: Our Board is constituted by men and women
with high moral values and integrity. They are
highly accomplished and therefore set high
standards that, at times, intimidate execu-
tives. Over time, we have come to appreciate
their vigilance and robustness when it comes
to compliance issues. We understand that the
Companies Act and the King Codes place many
responsibilities on them and therefore we never
take it personally when they question or direct.
We have also come to appreciate how the
Board emphasises the need for us as manage-
ment to respect the fact that we are running a
company owned by the state and, by extension,
the people of South Africa. They insist on humil-
ity, commitment to service and respect for the
customers. Through the Audit Committee and
Social and Ethics Committee, management is
constantly guided, which has fostered a very
good relationship. D N OR T H WE S T S TA R ( S OC ) LT Line
( SOC) LTD
CONTACT
General Manager - Northwest Star
Ms Bukeka Mahlutshana/
Mr Dirk Van Der Merwe
Tel: +27(12) 710 2200
Physical Address, FarmKleinleeukraal 91 JR, Makapanstad Road,
Zone 2, Temba
for more info visit www.nti.co.za
- Systems Development
- Fleet Management and Maintenance Services
- Operations Development and Support Services
- Human Resources Management Service
- Financial Management and Strategies
NTI offers a wide variety of services to its subsidiaries and clients. Services are available for all clients' in
particularly small business operators, interested groups such as women in transport, emerging SMME's in
transport and other groups in the transport related ?elds.
- Transport Consultancy Services
- Property Management
- Strategic Management Services
- Turnaround Strategies
- Vehicle and Crew Scheduling Services
- Management of Government Vehicles
anewdawninthetransport
industry,there-awakingofa
T N OR T H WE S T T R A N S P OR T I N V E S T ME N
M
O
C.
G
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B
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E
D
&
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C
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D
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A
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B
E
E
R
T
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P
P
A
E
U
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B
Business Development Manager
C
M
Y
CM
MY
CY
CMY
K
revised_leadershipAD_18_06_2012-1 print.pdf 1 6/19/12 11:54 AM
C
O
R
P
O
R
A
T
E
P
R
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F
I
L
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The re-branding launch, ribbon cutting on the new bus fleet,
The Group CEO, Board Members and EXCO team
doc_465828372.pdf
Presentation explain northwest transport investments the re awakening of a titan.
85 84
NorthWest Transport
Investments
The re-awakening of a Titan
N
orthwest Transport Investments (Soc) Ltd (NTI)
is a public entity solely owned by the North West
Provincial Government and listed in the Public
Finance Management Act as a Schedule 3(d) entity. The NTI
Group, through its subsidiaries North West Star (NWS) and
Atteridgeville Bus Service (ABS), provides bus transportation
services in the North West and Gauteng Provinces.
The operational focus of the group is largely on commuter transport,
which is operated through the NWS subsidiary in the City of Tshwane.
The subsidiary operates more than 670 buses, transporting approximately
32 million people over 34 million kilometres per annum.
As part of its growth and revenue diversi?cation strategy, the NTI
Group has established a business development unit that has started to
offer consultancy services to municipalities and small operators. The idea
is to expand the product offering of the company and thereby reduce
the group’s dependency on commuter contracts, which are currently
subjected to uncertainty brought on by the government’s Integrated
Public Transport Network.
In a Q&A interview with Leadership magazine, CEO of the NTI Group, TJ
Letselela, discussed the company’s business aspirations and challenges. He
is the ?rst CEO of the Group after it was taken out of judicial management
and was tasked with the responsibility of turning around the business.
How did you deal with the transition from judicial management
to normal operations?
TJ: The process was very challenging. We were confronted with high
expectations and, in some cases, skepticism. The workers saw an
opportunity to claim bene?ts they had lost over the years due to judicial
management, while the suppliers saw a gap to increase prices because
the company was now perceived to be liquid.
Together with the Board, we embarked on stakeholder road shows to,
inter alia, explain to them the need to stabilise the company and build
operational sustainability. We had to be transparent and open our books
to show the delicate balancing act we had to do. Fortunately, we have
a very progressive workers union (SATAWU), which understands our
strategic intent, so we managed to ?nd each other.
How did you deal with actual transformation in management
echelons and the supplier base?
TJ: One of the oddest things we found when we took over was the
fact that a company wholly owned by the government was the most
unrepresentative of the demographics of our country at management
level. We found a situation where 70% of senior management at head
of?ce was male and white; in addition, 81% of managers and departmental
heads in all depots were white and male.
The skewed picture also manifested itself in the spending patterns of
the company where over 86% of the company spend was to white-owned
companies and original equipment manufacturers with insigni?cant
empowerment representation.
We are pleased that in just two years, the picture of the company has
signi?cantly changed. We have 63% black representation in management.
A black female, Bukeka Mahlutshana, who is in charge of all commuter
operations under NWS, holds the second highest position in the Group
as General Manager of NWS. The company has placed several women
on development programmes to prepare them
for senior positions.
Equally, we have made signi?cant progress in
transforming the procurement patterns of the
company. We are currently spending just over
R20-million in HDI-owned suppliers, and over
R10-million in women-owned suppliers. Our
target, which is now policy, is to spend R50-
million in women-owned companies per annum.
How con?dent are you of success, with
the transport industry currently facing so
many challenges?
TJ: These days, companies are reviewing their
strategies and operating models. The focus is on
issues such as talent, innovation and collabora-
tion to ?nd new sources of revenue, growth and
competitive advantage – NTI is no different.
We are particularly con?dent of success
because we are currently operating at just 60%
of our potential in terms of product offering
and therefore there is much scope for growth
and innovation.
The NTI Group is known and (mistakenly)
regarded as a bus company, whereas it is a
transport investments company. NWS under
Starline brand and ABS are the ones operating
buses, and not NTI as a whole.
We have also refreshed our brand to help
shed our past image of a struggling company
under judicial management – which, by the way,
lasted for about 10 years.
Which part of the company can expect the
most signi?cant amount of growth in the
next few years?
TJ: The Business Development Unit will de?-
nitely experience more growth as we reinvent
ourselves as a premium transport company, by
offering services in the transport management,
transport research and bus body building sectors.
I will personally be monitoring these aspects of
growth, as they link directly to our ambitious
long-term plan to make the NTI a market leader
in transport services and product offering.
Without giving away too much, we are
considering several offers to jointly build bus
bodies in our premises. NTI owns the biggest
bus body manufacturing facility in the country
– a nine-hectare property with a 1.6-hectare
under-roof manufacturing plant. This facility
(known as Durabuild) used to produce more
than 40 bus bodies per month before the
company was put under judicial management
in the late 1990s.
We are also in discussion with the North
West Provincial Government to take over the
Ma?keng International Airport and Pilanesberg
Airport. We have put a strong case that, as a
provincial transport investments company, we
are the right entity to manage the provincial
airports, and so far the authorities are receptive
to the idea but, of course, we have competition
from other entities in the province.
How will you identify, engage and
empower the talent that will distinguish
your business from its competition?
TJ: Currently, NTI runs an accelerated develop-
ment programme targeted at senior and middle
management. It is designed to push more
women and youth into executive and leadership
roles in the next three to ?ve years. We have
established our internal guidelines for talent
and potential identi?cation. The trick is to avoid
pushing numbers at the expense of quality.
We also have a trainee female driver pro-
gramme that we started last year, which trains
female bus drivers from disadvantaged back-
grounds. We will further open opportunities for
them to rise within the company ranks to become
inspectors and superintendents. This clearly dif-
ferentiates us from our competitors as a company
offering a well-de?ned career path for women.
How do you plan to revitalise your
operations to cope with change while
keeping costs under control?
TJ: Cost containment is a priority for the Group
in the current ?nancial year. We are starting
collaborations with stakeholders to achieve our
strategic goals, which are essentially focused
on cost containment, revenue growth and
increased quality service. This will be done
through strategic alliances, joint ventures,
cross-border operations, acquisitions and
outsourcing of some business functions.
In the last two years of operation, we have
already reduced costs of running the business
year-on-year by simply negotiating better deals
with suppliers, disciplined use of material, and
review of certain processes in the business
value chain.
We have also started with the bus replenish-
ment programme to enhance our capacity to
deliver commuter services under NWS and ABS.
With close to 100 new buses already introduced
in the ?eet, the passengers have already shown
appreciation by returning to our buses.
How does NTI plan to take advantage
of the opportunities created by the
government’s new transport plans?
TJ: At NTI level, we are strongly lobbying for par-
ticipation in the new transport plans including
the bus rapid transit systems in Tshwane and
Rustenburg. There are currently more opportu-
nities in areas of consultancy and management
for the implementation of new transport plans.
We have internally geared ourselves to take
advantage of the available opportunities and
also use our status as state-owned entity to play
a leading role in the implementation process.
How does NTI plan to address concerns
around issues of environmental
sustainability?
TJ: Customers and government alike agree that
sustainability is key to economic growth and
competitiveness. As a result, NTI ?nds that its
environmental and corporate responsibility
practices are under a microscope.
NTI has adopted eco-friendly changes to the
way it does business. Bearing in mind that
we operate a 700-strong ?eet of buses, we
are expected to contribute toward reducing
carbon emissions.
We have undertaken an energy audit, devel-
oped an action plan and we will continue to
review our actions to ensure compliance with
environment laws. We have considered all
C
O
R
P
O
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A
T
E
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L
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TJ Letselela, chief executive officer
86
aspects of our business, namely what types
of fuel and spares we are using and whether
they contribute to increased emissions. When
we dispose of used oils and material from our
centres, we ensure that environmental concerns
are considered.
Is there anything you want to say to your
stakeholders about the changes you are
making at NTI?
TJ: ‘We are re-awaking a titan.’ The process
de?nitely requires our collective effort and
unity of purpose. We need to draw from good
memories of this group during its past glorious
days operating across the country. We need
to double our efforts to reverse the negative
patch in our history when we had to be placed
under judicial management. In short, we have
lessons from which to draw and new vigour to
build an even better operation.
We therefore need all the support to con-
quer this massive task, particularly from
our employees who are at the centre of our
turnaround strategy. We continue to value
their contribution and thank them for the
past sacri?ces made, which possibly saved the
company from liquidation during the judicial
management period.
How are you going to ensure return
on investment for the NWPG as a
shareholder?
TJ: It is true that the NWPG has invested a lot in
this Group over the years. In fact, this may be
the biggest investment the province has ever
made in an entity.
Equally, this is one of the few entities owned
by the province with a potential to sustain itself
and even declare pro?ts. We strongly believe
that it is time the institution provides value
for money, and this is clearly re?ected in our
ambitious plans.
Our Premier, Mme Thandi Modise, has been
unequivocal in calling for economic devel-
opment in the province. She outlined great
infrastructure plans for the province, which
requires ?nancial and human capital to achieve.
We intend to position this entity as one of the
big economic development propellers in the
province. We will focus more on job-creating
projects and work toward turning pro?ts, which
will in turn boost the Provincial Treasury’s
funding of infrastructure projects.
How is NTI’s relationship with
stakeholders such as passengers
and unions?
TJ: We have taken an approach that says
‘anything for stakeholders with stakeholders’,
meaning that we will always consult to ensure
we deliver service and products as required
by the clients. We have a standing consulta-
tive meeting with the passenger forum to get
their views on our buses and service in gen-
eral, and this has led to our passengers being
receptive and understanding when we have to
increase fares.
We have included the labour representatives
in all committees of the institution, including
procurement, to get their inputs but also to
be transparent on how we do things. We have
taken a principled stance and agreed with them
(union) that there will be times when we have
to agree to disagree – but the interest of the
company must always be put ?rst.
The working relationship and mutual respect
has been great. We appreciate their maturity,
which directly led to our success in stabilising
the company. We have never lost one day’s work
due to labour unrest since we took over.
How supportive has the Board been to
management’s initiative?
TJ: Our Board is constituted by men and women
with high moral values and integrity. They are
highly accomplished and therefore set high
standards that, at times, intimidate execu-
tives. Over time, we have come to appreciate
their vigilance and robustness when it comes
to compliance issues. We understand that the
Companies Act and the King Codes place many
responsibilities on them and therefore we never
take it personally when they question or direct.
We have also come to appreciate how the
Board emphasises the need for us as manage-
ment to respect the fact that we are running a
company owned by the state and, by extension,
the people of South Africa. They insist on humil-
ity, commitment to service and respect for the
customers. Through the Audit Committee and
Social and Ethics Committee, management is
constantly guided, which has fostered a very
good relationship. D N OR T H WE S T S TA R ( S OC ) LT Line
( SOC) LTD
CONTACT
General Manager - Northwest Star
Ms Bukeka Mahlutshana/
Mr Dirk Van Der Merwe
Tel: +27(12) 710 2200
Physical Address, FarmKleinleeukraal 91 JR, Makapanstad Road,
Zone 2, Temba
for more info visit www.nti.co.za
- Systems Development
- Fleet Management and Maintenance Services
- Operations Development and Support Services
- Human Resources Management Service
- Financial Management and Strategies
NTI offers a wide variety of services to its subsidiaries and clients. Services are available for all clients' in
particularly small business operators, interested groups such as women in transport, emerging SMME's in
transport and other groups in the transport related ?elds.
- Transport Consultancy Services
- Property Management
- Strategic Management Services
- Turnaround Strategies
- Vehicle and Crew Scheduling Services
- Management of Government Vehicles
anewdawninthetransport
industry,there-awakingofa
T N OR T H WE S T T R A N S P OR T I N V E S T ME N
M
O
C.
G
NI
D
N
A
R
B
E
L
P
P
A
E
U
L
B.
W
W
W
D
TL
Y
T
P
N
GI
S
E
D
&
Y
C
N
ATL
U
S
N
O
C
D
N
A
R
B
E
E
R
T
E
L
P
P
A
E
U
L
B
Business Development Manager
C
M
Y
CM
MY
CY
CMY
K
revised_leadershipAD_18_06_2012-1 print.pdf 1 6/19/12 11:54 AM
C
O
R
P
O
R
A
T
E
P
R
O
F
I
L
E
The re-branding launch, ribbon cutting on the new bus fleet,
The Group CEO, Board Members and EXCO team
doc_465828372.pdf