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Freight & Trading Weekly

Charting a course for Transnet’s recovery

25 Jan 2019 - by Eugene Goddard
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Increased loads, capacity investigations with a view to possibly unlocking outsourcing opportunities, improved cohesion between its various subsidiaries, and enhanced private sector cooperation were all identified as areas of concern by Transnet acting CEO Tau Morwe. Speaking at a recent media briefing held by the parastatal in Sandton, Morwe said it was precisely because of high-level discussions with private sector clients towards the end of last year that under-performance had been identified as a main complaint. After taking over from Siyabonga Gama, his disgraced predecessor who has been implicated as an enabler of state capture, Morwe said it had emerged that although Transnet had marketed itself “as an integrated provider of logistics services, this was not the case”. With reference to Transnet Freight Rail (TFR), Transnet Port Terminals and Transnet National Ports Authority, Morwe said the subsidiaries “had organised themselves into little fiefdoms that were not talking to one another. “It meant that our strategies on paper differed from the strategies in practice.” Morwe stressed that “a more cohesive business approach” would characterise Transnet’s road to recovery. “A key focus area is to go back and put in place a model that is fit for purpose.” He added that the potential for business growth had for example been identified at Transnet’s property division where some R30bn in assets could possibly be utilised for job creating opportunities through envisioned publicprivate partnerships. He also mentioned intended improved collaboration with the Ports of Saldanha, Mossel Bay and Richards Bay to build out capacity and trigger growth. Referring to TFR, Morwe said if land-side issues could be sorted out, “we will fix 50% of Transnet’s problems”.

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