Transnet pushes local procurement message

Transnet must play a bigger role in encouraging local equipment manufacture in preference to importing infrastructure. According to Karl Socikwa, chief executive of Transnet Port Terminals (TPT), seven new cranes for the Port of Durban have just been ordered to replace old infrastructure at the country’s busiest port, but they will not be manufactured locally but in China. “When I joined TPT two years ago I found a very interesting phenomenon at our ports. Not only were we buying our cranes abroad, but we were bringing in skills and knowledge from Sri Lanka to help us operate our cranes.” He said no knowledge base had been built up within TPT which continued to rely on Sri Lanka. “This is what must change. Why Sri Lanka? Why can’t we develop the skills to operate and address problems with our cranes locally? What is the difference between South Africa and Sri Lanka? We should be encouraging the development of skills so that they are calling on us for expertise and not the other way round.” He said when he posed the question the answer was simply that that was the way it was done.” Socikwa said South Africans should start doing it for themselves. “There is no difference between us and the Sri Lankans or the Germans or anyone else. We must focus on educating our workforce, developing our skills and creating jobs.” He said to this end an enterprise and supplier development programme had been implemented by Transnet. “We have this very large cheque book and we go and spend our money to buy our cranes in Ireland or in China. We should be spending our money locally.” He said through Transnet’s competitive supplier development programme, whenever a contract for equipment is placed, the manufacturer of this equipment would need to partner up with a local company. “That ensures we start the process of developing our own skills and knowledge base to local manufacturers so that South Africa can spend its money in South Africa.”