Technological catch-up and railway innovation at Transnet in South Africa

Abstract

This research aims to explore technological catch-up and railway innovation in the South African railway industry. It seeks to highlight the importance of innovation and technological catch-up in significantly improving operational performance and maintaining a competitive advantage for South African rail operators. The research design of this study involves a single, embedded case study that examines the effects of railway technological innovation and the process of technological catch-up in the railway industry, specifically within the global south. Transnet is utilised as the primary focus for exploration and analysis. The research findings show that Transnet has made considerable effort to keep up with prevailing railway technological innovation and the organisation currently resides in the duplicative imitation stage and is struggling to move beyond this stage. This is due to several factors: a lack of effective learning and technological capability building, a shortage of financial and vital resources, and unfavourable government policies. The recently gazetted National Rail Policy in South Africa presents an opportunity for the government to support the railway industry in its technological catch-up efforts and promote innovation to maintain its competitive advantage. In this respect, further recommendations for Transnet are made in this research report. The technological catch-up process is a complex and continuous process that may take decades and is not guaranteed. However, it is much more likely to be successful if an intentional, systematic, yet dynamic process is undertaken. Thus, there is hope for the South African railway sector