President Cyril Ramaphosa has told Transnet it must arrest its declining performance and start contributing meaningfully to economic growth.
“Transnet must quickly embark on a clear path to take us out of this crisis and ensure that the operation of our railways and ports contributes to the growth of our economy,” said Ramaphosa.
“Despite the crisis, we must acknowledge the important progress that has been made in reversing the damage that was inflicted during state capture and recognise that there are many dedicated and hard-working people in the company who are committed to restoring Transnet to its potential.”
The president told this to a meeting with Transnet's board and executives at the Union Buildings in Pretoria on Tuesday.
The meeting discussed problems with the country’s logistics system, including the declining performance of the freight rail network, said Presidency spokesperson Vincent Magwenya.
He said the government had set out a clear policy direction for the freight transport sector in the white paper on national rail policy and in legislation such as the National Ports Act and the Economic Regulation of Transport Bill now before parliament.
In his 2023 state of the nation address, Ramaphosa said the government would develop a road map for Transnet to provide clarity on the steps required to address the crisis.
Ramaphosa wants the reforms to be implemented swiftly.
Reform, said Magwenya, includes:
- ensuring sufficient rolling stock is available to allow more goods to be transported by rail;
- upgrading rail and port infrastructure;
- addressing security challenges; and
- implementing reforms to enable private-sector investment.
Ramaphosa said: “There is work under way between the various departments to finalise this road map, co-ordinated by Operation Vulindlela, and I would like this process to be completed as quickly as possible. We must remain focused on structural reforms to improve the efficiency and competitiveness of the transport sector in the long term.”
He said the reforms would enable third-party access to the freight rail network by private rail operators, while the network itself would still be owned by the state.
Ramaphosa noted the progress made in establishing a separate infrastructure manager within Transnet Freight Rail by October 2023 as a crucial step towards creating a level playing field for public and private operators.
The president said strong collaboration with the private sector, organised labour and other social partners was vital to improving logistics performance.
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