Transnet airs its dirty washing in public

Transnet management came clean at a Durban meeting of the Transport Forum about the shortcomings in what is Africa’s biggest logistics company. They spoke openly about lack of maintenance, poor planning, inefficient (and sometimes corrupt) purchasing procedures and a litany of other woes – taking the wind out of the sails of all but a few diehard critics in the audience. “We have to be brutally honest. The reality is that the system is on its knees,” Herbert Msagala, Transnet group executive: new business growth and diversification, told FTW in an interview during a break.

He opened the forum by saying that Transnet was an organisation “under siege” from  a combination of corruption, as well as global developments such as Brexit and the trade war between the United States and China. Ports are also having to position themselves so that they are not dictated to by the “big five” shipping companies that are emerging out of the industry’s consolidation. Having identified the problems and coming clean with the industry, Transnet was now able to address them, he told FTW. Actions being taken include reviewing all high-value

transactions and tenders. “We are dealing with corruption,” he said. Josiah Mpofu, general manager engineering Transnet Port Terminals, said progress had already been made in the reduction of equipment breakdowns and stoppages. Operators are being trained to identify problems before they become serious, and to carry out basic resetting or maintenance. Systems are also being put in place to monitor maintenance schedules and to ensure that spares and supplies are available when and where needed.