Transnet, South Africa’s state-owned rail, ports and pipeline company, has migrated its enterprise resource planning (ERP) system from ECC 6.0 to SAP S4/HANA.
SAP S/4HANA is SAP’s latest ERP software suite, built on the company’s HANA in-memory database platform, enabling real-time data processing, advanced analytics, and integration of intelligent technologies like artificial intelligence (AI) and machine learning.
It serves as the core of an organisation’s digital operations, managing everything from finance and HR to sales and supply chain, and is available for cloud, on-premises, or hybrid deployment.
The migration comes after Transnet had been grappling with severe delays at South Africa’s major ports, where backlogs have disrupted the flow of goods and dented business confidence.
Congestion at container terminals, equipment breakdowns, and inefficiencies in rail and logistics operations have worsened turnaround times, leaving cargo ships waiting offshore for days and slowing exports of key commodities.
In a statement, Transnet says through in-memory computing and advanced analytics, the migration allows the company to operate with greater agility, reliability and insight, all of which are critical factors in ensuring the entity remains competitive and resilient in a rapidly-changing environment.
This migration is part of Transnet’s ICT Digital Modernisation Strategy, which is built on four strategic pillars, including the modernisation of its core applications, it notes.
Changing with the times
According to the state-owned company (SOC), the S4/HANA modernisation programme is one of several strategic initiatives within the broader ICT strategy, aimed at driving innovation and improving Transnet’s service delivery.
The ERP is core to Transnet’s operations and has been formulated as a strategic initiative driven by a programme with a focus on Transnet Port Terminals (TPT) as the leading operating division in the company’s migration roadmap, the SOC notes.
The successful transition of TPT is just the beginning, says the company, adding that it plans to migrate the remaining SAP ECC6 systems across its operating divisions as part of a broader S4/HANA modernisation programme, leveraging the lessons learned from the initial success of TPT.
Transnet group chief information officer Pandelani Munyai says this step aligns with the SOC’s ongoing digital transformation agenda and marks a pivotal moment for the organisation.
“It underscores our commitment to enhancing operational efficiency and supports Transnet’s ‘Reinvent for Growth’ strategy, which focuses on sustainable growth, operational excellence and creating value for stakeholders. Our successful move to S/4 HANA is more than a system upgrade; it’s a foundation for innovation and growth across the organisation,” says Munyai.
He points out that as part of the digital transformation journey, TPT has reached a milestone by completing the migration across all 16 sea-cargo terminals nationwide.
“This transition represents not just a technological upgrade, but a fundamental step forward in modernising our business processes, improving efficiency and enabling smarter decision-making across Transnet.”
Dr Lufuno Raliphada, general manager for corporate services and information communication technology at TPT, emphasises the scale and significance of the achievement.
“We’ve completed our transition to S/4HANA with minimal disruption to operations. This is a major accomplishment, considering the complexity of such upgrades. Many global organisations have faced significant delays, cost overruns, or even failed implementations.”
He says the success is a testament to the dedication and collaboration of Transnet’s internal teams and partners.
Raliphada adds: “This system empowers us with enhanced visibility and control across sourcing, billing, pricing, inventory, contracts and credit management. It also supports our OEM [original equipment manufacturer] partnerships and maintenance contracts, ensuring our investment in new equipment is backed by a robust digital backbone.”
Teamwork pays off
For Munyai, this achievement is a testament to the collective effort of TPT leadership and the project team, group ICT PMO and system integrator Tech Mahindra.
“This shows that when technical expertise meets teamwork, there are no limits to what can be achieved. Moving to S4/HANA not only aligns us with the long-term SAP roadmap but also opens the door to future innovation.”
Munyai explains that the in-memory database capabilities of HANA enable instant processing of large datasets, empowering Transnet to run predictive analytics, AI applications, and real-time reporting without the need for data duplication into business warehouse or other business intelligence tools.
“The introduction of simplified data models – eliminating aggregates and index tables – significantly reduces system complexity and lowers total cost of ownership, while helping to standardise and harmonise processes across business units.
“This successful migration is a testament to the dedicated teams and their commitment to driving Transnet forward to embrace the future of digital operations,” Munyai concludes.
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