The Minister of Transport, Ms Barbara Creecy, recently attended the Transnet Annual General Meeting (AGM) in her capacity as the new Shareholder Representative for the Government. During the AGM, the Minister underscored the urgent need for Transnet to intensify its efforts to revitalise the country’s freight logistics sector.
To drive inclusive growth, the Minister emphasised the need for an efficient freight rail network capable of transporting minerals, agricultural produce, and manufactured goods to market. In 2023, Transnet faced significant challenges, including declining freight capacity and long waiting times for ships at underperforming ports. In response, Transnet developed a recovery plan that stabilised the sector, improved freight carrying capacity to 149 million tons, and reduced waiting times at ports.
“Here in Transnet, our recovery has plateaued, from achieving 149 million tons in 2023 to an expectation that we will not achieve more than 152 million tons this year. The private sector is clear: we need to be achieving 250 million tonnes a year if we are to assist the country on its overall path to economic recovery,” said Minister Creecy.
The Minister stressed the need to scrutinise the Transnet Recovery Plan and engage with its assumptions. “While this might require steadfastness in our determination to improve operational efficiencies, we also require strategic and tactical agility to welcome industry-wide collaboration,” she added.
Minister Creecy highlighted the direct link between the national economy’s underperformance and the challenges faced by Transnet, urging the entity’s leadership to take immediate and focused action in support of Cabinet’s apex priority of rapid, inclusive and sustainable economic growth that will create jobs and foster economic development.
The Minister also referred to the Cabinet-approved Freight Logistics Roadmap from December 2023, which includes the development of a framework for private sector participation. This framework will identify suitable areas for private sector involvement in rail and ports and outline the structural and contractual requirements to enable such participation.
The Department of Transport is working with the National Logistics Crisis Committee (NLCC) to finalise the development of a future Private Sector Participation (PSP) unit. This unit will be equipped with the necessary skills and expertise in the design, negotiation and contracting of projects, enabling private sector investment and participation in ports and rail. This is aimed at increasing competition and efficiency while ensuring that the infrastructure remains state-owned.
During her address, the Minister stressed the urgency of recalibrating Transnet’s performance targets to better align with the nation’s economic needs, stressing the necessity of pulling out all the stops to achieve these targets.
Having visited the Ports of Cape Town, Saldanha, Durban and Richards Bay, and having engaged directly with managers responsible for key corridors, terminals and security, Minister Creecy emphasised that Transnet’s recovery efforts must align with national initiatives. She particularly highlighted the support from the National Logistics Crisis Committee, part of a broader initiative led by the President to stabilise and revitalise the logistics sector.
“You cannot solve your current problems on your own or by returning to the past. You can only solve them by embracing the support the National Logistics Crisis Committee is offering and mainstreaming these initiatives in everything you do,” the Minister insisted.
Minister Creecy concluded by congratulating Transnet for achieving an unqualified audit opinion and reaffirmed her commitment to supporting the entity in its recovery journey. She emphasised the need for decisive leadership and innovative solutions to reshape the freight logistics sector and redefine Transnet’s role within it.
