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Logistics

Freight industry welcomes Phillips’ appointment at Transnet

29 Feb 2024 - by Eugene Goddard
Hands-on approach... Michelle Phillips, the newly appointed Group Chief Executive Officer of South Africa’s logistics utility. Source: LinkedIn
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Business leaders from South Africa’s freight industry have reacted with unequivocal support for the appointment of Michelle Phillips at the helm of the country’s beleaguered logistics utility, a position she has occupied since last year in a caretaker capacity.

The executives hail from various sectors of logistics and supply chain, including Captain Salvatore Sarno, the chairman of MSC in South Africa.

He was particularly vocal about Phillips surviving the perceived threat posed by Mlamuli Buthelezi, favoured by some in ANC cadre deployment circles but disgraced in 2019 when he was suspended for alleged misconduct while chief operating officer at Transnet.

Sarno said: “I strongly congratulate Minister Pravin Gordhan who in spite of the pressure received from politicians to appoint one of their protégés, has given priority to the country's interest in appointing Michelle Phillips.”

A stalwart of global shipping, Sarno described the newly appointed Group CEO as “the best ever homemade port specialist to improve the catastrophic situation of the most important public infrastructure such as the ports container terminals and railway network.

 “I welcome Michelle Phillips and assure her that MSC will be by her side to cooperate in a difficult but not impossible task to right the wrongs (of the past).”

Dave Graham, who heads up neutral consolidator SACO-CFR, said Phillips should be allowed to apply herself unhindered.

“I believe it to be a very positive appointment which will certainly be well received in the industry.

“But as capable as Michelle appears to have been whilst in an acting capacity, she must be empowered and able to operate without government interference if she is to succeed in getting Transnet back to a position of respectability.”

He said Michelle and her team at Transnet must be supported and allowed to make the necessary changes that are so desperately needed.

“I wish her all the very best of luck in this critical role.”

Mike Walwyn of the South African Association of Freight Forwarders, also expressed cautious enthusiasm for her appointment.

Turning Transnet around after years of mismanagement by Phillips’ predecessors “is a long way to go, and no one person can fix it single-handedly,” he said.

“But we believe she will create and enabling environment that will allow public-private partnerships to take root and flourish.”

Clifford Evans of Berry & Donaldson freight forwarders said he fully agrees it was a good decision.

“Michelle is highly respected and has been working closely with industry over the past few months with very positive outcomes.

“Definitely a positive step in the right direction.”

Terry Gale of the Exporters Club Western Cape said: “I am delighted that Michelle is now permanently appointed to this position.

“She is the right person for the job, has the experience and is also very engaging.”

He said her staying in the most important position at Transnet provides a level of business continuity for the state-owned company.

“Kudos all round!

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