The war of words between Transnet and the business lobby groups, who have called for the axing of the company’s CEO, Portia Derby, continues with the state logistics company saying such calls are opportunistic and intimidatory.
In a statement on Wednesday, Transnet implied that the calls by the lobby groups are due to nonpayment, adding that the calls have been made by the groups to “further their own agendas”.
“As it addresses its challenges, Transnet remains committed to authentic stakeholder engagement and collaboration. However, it must be clear that those who owe Transnet money will have to pay, and the company will not be intimidated,” Transnet says.
“The quarterly meetings of the Durban Chamber of Commerce Council, where Transnet has a representative, is another forum to tackle areas of mutual interest.”
The calls by the Durban chamber, the Pietermaritzburg and Midlands Chamber of Commerce and the Association of SA Chambers for public enterprises minister Pravin Gordhan and the board to fire Derby, Transnet Freight Rail CEO Siza Mzimela and Transnet National Ports Authority CEO Pepi Silinga began shortly after the minister called for the board to conduct a sweeping review of the company.
The pleas by the lobby groups follow a similar call by the Minerals Council in December 2022. However, in a joint statement soon after Transnet’s board and leaders of the council said they agreed to set up collaborative structures to help stabilise and improve the throughput of SA’s rail and ports systems.
Business Day previously reported that Gordhan had backed the board despite calls from the lobby groups. This as he awaits the turnaround plan from the board, which is expected to be completed and handed over to the minister by October.
“The board is seized with the injunction that I have given it, and I am sure the issues that have been raised by the chambers will be addressed in its recommendations or in the feedback that the board will present to the shareholder. The shortcomings of Transnet are of national concern,” Gordhan said.
The statement by Transnet on Wednesday is in stark contrast to the one it released earlier in September when it said its CEO would meet the Durban chamber’s CEO, Palesa Phili, and eThekwini mayor Mxolisi Kaunda, where concerns regarding the logistics company would be raised.
Transnet says it holds bimonthly meetings with the Durban chamber where the company’s performance is reviewed and the concerns of the chamber are also discussed.
“It must also be emphasised that Transnet holds regular and ad hoc meetings with many member bodies and stakeholders, across all its operations, who are updated on any areas impacting them, and mitigation measures are put in place where required,” it said.
Meanwhile, unions at Transnet met with Gordhan on Wednesday where they presented strategies to fix the ailing state-owned enterprise.
“Transnet is currently facing a variety of challenges including revenue loss, overwhelming debt, locomotive unavailability, theft and vandalism, as well as poor performance from Transnet Engineering and Transnet Freight Rail. During the meeting, senior leadership from both unions presented practical solutions to turn Transnet around quickly and efficiently,” the United Transport & Allied Trade Union and SA Transport and Allied Workers Union said in a joint statement after the meeting.
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