Mining Indaba: Transnet promises operational turnaround amid calls for reform

Ports and rail operator Transnet says it is on track to improve its operations amid calls for structural reforms to be sped up and for policy certainty at the annual Mining Indaba in Cape Town.

Operational and financial challenges have hobbled the state-owned company for some years, costing the economy billions of rands in missed opportunities. The inefficiencies at Transnet are among what’s behind the logistical nightmare that continues to impact the country’s export capacity, affecting the mining industry.

In the five years to 2022, the country’s rail volume plunged by 77 million tonnes to a low of 149 million.

Transnet executives are now upbeat that the current turnaround strategy and private sector participation could help nearly double that figure to reach the ambitious rail volume target of 250 million tons by 2030. The SOE believes it could also surpass the target set by the country.

CEO of Freight Rail Russell Baatjies spoke about the company’s progress on the sidelines of the Mining Indaba, as the company looks to continue recovering from being labelled as the Achilles heel of the economy.

“By 2029, we will be on 200 million tons and contribute to the minister's ideal of 250 million tons by 2030. Coal, we want to see on 65 million tonnes.”

Baatjies took investors into his confidence on achieving a stable SOE and contributing to a successful mining industry.