The South African United Business Confederation (SAUBC) says it has monitored the constant unstable management of the state-owned entity known as Transnet, which indeed increases concerns.
“Urgent action to change the management team of both Transnet SOC and TFR. This includes the removal of the existing Transnet Group CEO and CEO of Transnet Freight Rail and their replacement with properly qualified and experienced rail freight leaders”, as MCSA indicated.
“The SAUBC supports Minerals Council interventions, as they clearly demonstrate efficient tools that Transnet SOC must adopt and implement for the advancement of the organisation,“ the confederation said in a statement.
“Significant changes are necessary at Transnet, as provided by the Minerals Council of South Africa, to extract restraint which continues to deteriorate our economy. One of the most concerning signs is the decline in TFR flow rates. Transnet has six operating divisions, but TFR is the largest and most important financially, generating more revenue than the other five.”
“This situation is quite serious and needs intervention. Therefore, SAUBC is committed to monitor the implementation of the practical solutions offered by MCSA to Transnet's challenges and ensure that all manufacturers see the comprehensive progress that results from improved operational performance.”
SAUBC Chairperson Sello Rasethaba said: “Transnet failed to implement more than 80% of the geographic, spatial and regional Strategic Integrated Projects (SIPS) in which they have been involved since 2012 and failed to increase rail capacity on the coal export railway line to match the target of 91 million tons per annum of coal, which expansion was achieved by Richard Bay Coal Terminal Company.
Instead, coal export volumes dropped to the lowest level in 25 years. Competing coal export countries, like Australia, in the same period, increased their coal exports from 285Mtpa to more than 360Mtpa - an increase equivalent to another Richards Bay Coal Terminal. Definitely not a shining example of how to transform a company to greatness”.
“Transnet plays a crucial and exceptional role in Trade which sustains our country's economy, creates job opportunities, improves consumer advancements and empowers our societies at large. Since Transnet has suffered unfortunate experiences over the last two years, cable and other infrastructure theft, floods, the topical Transnet trade union strike, and a legal dispute with manufacturers, which caused stakeholders' to rapidly lose confidence in the organisation's ability to turn things around” SAUBC President, George Sebulela further stated.
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