Transnet has dismissed utterances by a leading academic and economist at North-West University that it’s facing an unavoidable implosion of operations.
At the same time, the state-owned company’s acting CEO, Michelle Phillips, would also not be drawn about a weekend report regarding her position.
In response to Professor Waldo Krugell's assertion that the state-owned enterprise (SOE) is failing, Transnet acknowledged the impact of its current challenges on the economy.
Ayanda Shezi, Head of Corporate Services, referred to the Recovery Plan adopted in October 2023, emphasising its role in stabilising the business and ensuring tangible, sustainable improvements in performance.
Speaking on behalf of Phillips, she said: “The Plan has six-, 12- and 18-month targets to drive improvements in operational and financial metrics.
“A concerted effort is being made, particularly in the rail and port businesses, and while it is early days, we are beginning to see some green shoots in certain areas.”
She cited the significant reduction in vessel congestion at the ports of Durban and Cape Town as evidence of this progress.
Shezi said this was “thanks to the commitment from our employees and key stakeholders.
“Transnet continues to work with government, our customers and industry as we plan for upcoming peak seasons.”
Regarding the report in a Sunday newspaper that Phillips is facing resistance from the ANC government because she’s “not black enough”, Shezi declined to comment.
The report suggests that there is a push from within the ruling party to replace Phillips with Mlamuli Buthelezi, a former chief operating officer at the utility who was suspended in March 2019 following allegations of misconduct.
He was suspended along with Ravi Nair, former chief executive of Transnet Freight Rail (TFR).
When the pair resigned in October of the same year, Buthelezi and Nair were apparently paid respective severance packages of R12.5 million and R11.5 million each, IOL reported at the time.
Currently, apart from Phillips taking over from Portia Derby, who resigned under a cloud of private-sector recrimination last year, Russell Baadjies is acting CEO of TFR.
According to the Sunday Times, he is also not favoured by the ANC for being permanently confirmed in his position for the same reason as Phillips.
Recently, the CEO of the South African Association of Ship Operators and Agents, Peter Besnard, said Phillips is the best person for the position of steering Transnet away from the mess created under Derby.
He said before the Covid-19 pandemic, Phillips, who was in the capacity of an operating officer at the time, had implemented strategies supported by the freight industry.
Speaking at a Transport Forum in December, Stellenbosch University lecturer in macro-logistics, Professor Jan Havenga, also lauded Phillips.
He said together with Baatjies, the pair had in very little time tried to do things differently to implement turn-around strategies for the SOE.
