Microeconomics Case Study

Transnet: The South Africa’s Transport Monopoly

OR

Abstract:
For a decade, South Africa's Transnet enjoyed absolute monopoly over the country's transportation sector. Complacency on the part of Transnet’s management led to an increase in competition. Meanwhile, the company was heading towards a deep financial crisis. The new CEO, Maria Ramos, who strongly believed that one couldn't have a better tomorrow if one was thinking about yesterday all the time, considered various options to revive the company.

Pedagogical Objectives:

• To discuss the problems faced by large monopolies like Transnet
• To analyse the causes of the near financial crisis at Transnet and the probable revival measures.

Keywords : Transnet Limited; South African transport monopoly; African National Congress; Business strategy; Parastatals, public corporations; Maria Ramos; Competition landscape of South Africa's transport industry; Growth Strategies Case Study; Turnaround strategy; South African railways; airways; road transport; harbour; Privatisation; National Ports Authority; Portnet; Spoornet; Propnet; Transtel; Transwerk; South African ports operations; Petronet; Metrorail; Freightdynamics; Business environment in South Africa