South Africa's state-owned rail and port operator Transnet has told the government it needs more time and cannot meet the next month deadline for a roadmap to address the country's logistics problems, its top executive said. The acting director made the announcement on Tuesday.
Transnet has struggled to provide adequate freight rail and port services due to equipment shortages and maintenance backlogs due to years of lack of investment. Rampant cable theft and vandalism are also damaging networks.
Exporters, including South African miners, claim they have suffered millions of dollars in losses due to the knock-on effects on the economy, but Transnet said rushing a resolution would not help.
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Transnet's acting chief executive, Michelle Phillips, told Reuters on the sidelines of the African Mining Indaba investment in Cape Town: “We are currently discussing some dates with Treasury and shareholders.” Ta.
“If you look at the logistics roadmap, there are a number of deals with dates, many of which are related to March of this year, and I don't think that's possible and I don't think we can do it, so we're looking at alternative dates. 'As Transnet we can do that,' she said.
In December, the government approved funding for Transnet, along with a freight logistics roadmap that plans to increase private sector involvement in the country's rail and port networks.
The provisions include the creation of an independent infrastructure management department, the appointment of an infrastructure manager by March 2024, and the granting of requests from private companies for the right to operate parts of the freight rail network from April. It also includes the expected deadline.
The utility has yet to announce a replacement after its group CEO and head of its main freight rail subsidiary left in October last year. The Transnet board chairman said the vacancy could be filled by the end of this month.
Mr Phillips said Transnet supported the reform proposals but was concerned that rushing things “would lead to mistakes being made”.
“We have a contract in place and they (shareholders) are considering our request. I would like to give them room to consider it,” she said.
“My focus at the moment is to operate at the right level to keep our customers happy while also being able to work towards the future,” she said.
