Transnet says 18 month recovery plan on track despite losses

Clement Manyathela, in for Bongani Bingwa, is joined by Andile Sangqu, Chair of the Transnet Board.

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It is nearly a year since the Transnet board agreed to begin implementing an eighteen-month recovery plan aimed at addressing the challenges threatening its operational and financial stability.

But while the plan is in progress, its success remains uncertain.

Sangqu admits the parastatal is facing a host of challenges including high debt levels, operational inefficiencies and infrastructure issues.

He says it was agreed that Transnet would require an absolute minimum of 18 months just to stabilise.

"I'm pleased to say that, despite some of the set backs here and there, overall we are on track."

Andile Sangqu, Chairperson - Transnet Board

Sangqu says one of the board's priorities for the recovery plan was to stabilise the company's leadership.

"I'm pleased to say we have appointed a Group CEO, a Group COO, a Group CFO, the CEO of a our large business TFR, the CEO of Transnet Pipeline...those are five brand new executives in a period of six months."

Andile Sangqu, Chairperson - Transnet Board

Sangqu says the new executives must be given a chance to work with the recovery plan.

On Wednesday, the Auditor General noted that the utility has suffered losses of R7.3 billion for the financial year (up from last year) that's despite improvements in its rail and port cargo volumes.

It is also not yet meeting its 154 million tonne freight shifting target set in the recovery plan.

"One needs also to take into account the fact that the recovery plan kicked off in October, so we literally have about 4, 4 and a half months of the prior financial year to achieve those targets."

Andile Sangqu, Chairperson - Transnet Board

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