TPT hints at investments ‘rethink’

Transnet Port Terminals has hinted at a rethink of investment decisions in light of the economic downturn. While the transport utility has set itself bold productivity targets for the financial year ahead – beginning April 1 – chief operating officer Solly Letsoalo says it may have to relook at its cost base. “We need to align it with demand without sacrificing the ability to grow when the volume comes back.” Letsoalo wants to see all the terminals averaging 28 container moves per crane hour. “On the bulk side our target is 6000 tonnes loaded per hour.” The challenge, says Letsoalo, is keeping costs down when volumes and activity are low and the number of employees exceeds the requirements. “We have very high expenditure that was put in place whereas very little revenue is coming from the additional expenditure, so there is a need to relook at the whole investment plan. “We must ensure that we prioritise the investments that will deliver growth in the short term as well as those that we need to have in place when the economy turns – and making that choice is a major challenge.” Managing cash flows, managing costs and then keeping employees motivated are the priorities, he said.