Board that is fixing Transnet gets six more months to fulfil mission

Transnet’s board, whose tenure was scheduled to end this month, will remain in place until at least January as transport minister Barbara Creecy seeks more time to appoint a new board.

“Transnet wishes to notify noteholders that the minister of transport has extended the term of the current Transnet board, which was due to expire on July 12, by a further six months effective to January 11 2027 or until the appointment process for the new board is finalised, whichever occurs first,” the freight and rail group said in a regulatory filing.

“The extension will allow for sufficient time to complete the process for the appointment of a new board.”

Led by Sandile Sangqu, the present board took office in July 2023 — a time Transnet was facing severe financial and operational challenges, with congestion at its ports worsening.

Members were tasked with drafting a turnaround for the state-owned ports and rail operator, which is indispensable to South Africa’s trade with the rest of the world.

Just three months later the board parted ways with CEO Portia Derby and CFO Nonkululeko Dlamini and replaced them with Michelle Phillips, then CEO of Transnet Pipelines, and Nosipho Maphumulo, respectively.

The board spearheaded a recovery plan, including for the freight and rail group to handle 250-million tonnes of freight by 2030.

The entity reduced its loss to R1.9bn in 2025 from R7.3bn in the previous year thanks to an increase in rail freight volumes.

Green shoots are also in evidence at its key ports. In the latest World Bank and S&P rankings, the Port of Durban, the crown jewel in South Africa’s harbour network, has been ranked as the world’s most improved.

Ngqura and Port Elizabeth made it to the top 10 of the most improved ports globally. But Durban was the star, with its performance surging by 479 points in 2025 and improving.

Transnet said in May its ports handled more than 300-million tonnes in the 2025/26 financial year — including a 9% increase in vessel traffic — the best performance in 15 years and an indication that recovery is well under way at the freight and rail entity.

Cargo volume throughput at the eight commercial seaports increased by 4.2%, the strongest growth since the 2011/12 financial year.

The Cape Town port was ranked as the worst-performing, and on Monday Transnet gave an update on progress there.

“The port continues to advance private sector participation. Currently, nine of 11 terminals are privately operated,” it said in a statement.

“To further support this initiative, new requests for proposals are planned for a multipurpose terminal as well as a floating dock facility aimed at expanding ship repair capacity.

“Infrastructure interventions have further supported operational performance, including 10 permanently deployed shore tension units at the Cape Town Container Terminal. The units have reduced long-wave-related downtime by 92% since the 2023/24 financial year.”

The private sector is expected to play a more pronounced role at the port and across the country’s port network as part of the government’s most comprehensive logistics reforms in a generation.

Durban Container Terminal Pier 2 (DCT2) is set for an R11bn injection from ICTSI, a Philippines-based terminals group, which pipped Danish logistics giant Maersk in the race to partner Transnet in operating the terminal.

DCT2 is Transnet’s biggest container terminal, handling more than 65% of the port’s throughput and 40% of South Africa’s port traffic.

Business Day