If the partnership between the private sector and government can emulate what has been achieved with energy, which has markedly reduced load-shedding, then logistics can be similarly impacted positively to overcome Transnet’s shortcomings, which have damaged the economy radically.
The chief executive officer of Business Leadership South Africa (BLSA), Busi Mavusa, said if the National Logics Crisis Committee (NLCC) could react with the same speed and urgency as the National Electricity Crisis Committee (Necom) it was not all gloom. Necom was established last year to overcome the problems being experienced with electricity.
Recently, 115 chief executive officers (CEOs) met with President Cyril Ramaphosa to establish how the private sector can assist the government in overcoming three extremely problematic areas that are costing the economy dearly: energy, logistics and crime.
“It is easy to be gloomy about logistics, and many are. Now there is a raft of experienced leaders with excellent business, logistics and public sector experience, who can support Transnet CEO Portia Derby and chief financial officer Nonkululeko Dlamini to implement solutions,” Mavuso said.
The first sign of change was appointing nine new members to the Transnet board, including new chair Andile Sangqu, the former head of Anglo American South Africa.
Already Transnet has announced the concessioning of a large part of the Port of Durban, with Manila-headquartered International Container Terminal Services as the preferred bidder.
Transnet has taken a step in the right direction regarding infrastructure development in the Northern Cape, shortlisting three respondents for proposals for the design, funding and construction of a planned port and rail infrastructure project linked to Boegoebaai, 60 kilometres north of Port Nolloth in the Western Cape.
This could open up significant opportunities for the mining sector and potential green hydrogen projects in the province.
“This is not to say the problems have been solved – far from it. Most companies still struggle to gain access to sufficient capacity to move their output down rail or out of ports. The result is they cannot expand, invest and employ more people.
“Recent progress by Transnet, and the NLCC, indicate to me early positive momentum in dealing with the logistics crisis,” he said.
