Public enterprises minister Pravin Gordhan says he is confident Transnet's board understands the scale of challenges confronting the freight and logistics company.
The board has his full support in its efforts to come up with the requisite remedial action, he added.
Gordhan said this on Tuesday, noting correspondence from the Association of South African Chambers (ASAC), whose members have called for decisive action to resolve issues affecting the economy because of the state-owned company's underperformance.
The correspondence followed a directive Gordhan gave the Transnet board about three weeks ago to urgently make recommendations to address a range of operational shortcomings, the minister said.
Transnet's recently announced annual financial results made it clear the entity required urgent and serious interventions to address the root causes of deficiencies that are negatively affecting the economy and South Africa’s export competitiveness, added Gordhan.
Gordhan trusts Transnet board will come up with turnaround plans
Image: Esa Alexander
Public enterprises minister Pravin Gordhan says he is confident Transnet's board understands the scale of challenges confronting the freight and logistics company.
The board has his full support in its efforts to come up with the requisite remedial action, he added.
Gordhan said this on Tuesday, noting correspondence from the Association of South African Chambers (ASAC), whose members have called for decisive action to resolve issues affecting the economy because of the state-owned company's underperformance.
The correspondence followed a directive Gordhan gave the Transnet board about three weeks ago to urgently make recommendations to address a range of operational shortcomings, the minister said.
Transnet's recently announced annual financial results made it clear the entity required urgent and serious interventions to address the root causes of deficiencies that are negatively affecting the economy and South Africa’s export competitiveness, added Gordhan.
Transnet woes place 35,000 coal jobs at risk
Earlier this month, Transnet reported a R5.7bn loss in the financial year that ended in March, compared with a R5bn profit the previous year.
“The board is seized with the injunction that I have given it and I am sure that issues that have been raised by the chambers will be addressed in its recommendations or in the feedback the board will present to the shareholder.
“The shortcomings of Transnet are of national concern,” Gordhan said.
Issues he directed the board to report back on included operational transformation, root causes, a management review and an excessive cost structure.
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