Funds hold back Spoornet’s turnaround plan

‘Motivated workforce is the key’ LEONARD NEILL SPOORNET DESPERATELY needs R14 billion to get its house in order, and has devised a five-year plan to get there provided it can source the necessary finance. Chief executive Dolly Mokgatle made this clear at a media gathering in Sandton last week when she announced major changes within the company all aimed at satisfying customers who have labelled Spoornet as ‘unpunctual, inflexible and costly.’ “We are now ready to accept challenge for change head-on,” she said. “We are fully aware of the severity of the current situation characterised by a less than perfect service delivery to our clients. However, I believe that we have a credible plan of action which will re-engineer our business.” Top of the agenda is the funding of the plan, which involves the overhauling of existing locomotives and infrastructure, refurbishing unused wagons, tailoring pricing structures to meet individual requirements and improving the workforce. But a funder for the scheme has still to be found. She said that Spoornet was working with corporate financiers for ways to find capital while the national treasury has not indicated it is willing to help. “Our company’s performance reflects the years of neglect primarily in the area of investment,” she said. “Our assets are ageing rapidly and proving costly to maintain. Our financial performance has deteriorated, and we have insufficient critical skills. With this employee morale is at rock bottom and there is a poor work ethic. “It is very clear that any plan we introduce hinges on attracting, retaining and motivating a skilled workforce. We have plans to ensure that our employees are highly motivated, trained and have the capacity and capability to deliver,” she said. “The initiative we are introducing is aimed at restructuring the workforce, developing our critical skills, building pride and confidence in people and business and introducing innovative operating practices.” Above all, said Mokgatle, Spoornet must tackle the matter of getting cargo back from road transport to rail, but it needs the infrastructure and its own re-established efficiency to achieve this target.