Transnet said that some comments made by Group chief executive Portia Derby have been taken out of context.

21/08/2023

In a statement issued last Friday, Transnet chairperson Andile Sangqu said Ms. Portia Derby’s comments had been taken out of context. According to the Transnet statement, during one of Bloomberg events, Derby reacted to a question from the audience regarding the dramatic increase in trucking in South Africa as a result of rail’s subpar operation during a spike in the world’s demand for coal.

In its statement, Transnet claims that the appropriate media outlets need to retract their inaccurate depiction of Derby’s remarks. It said, “The characterization by News24 of her comments means that there will be major job losses once Transnet improves its rail services.

Portia Derby, Transnet Group CEO

“This headline, in particular, is unfortunate, and not an accurate reflection of Ms Derby’s comments.”

Transnet Freight Rail (TFR) has reportedly faced three primary binding restrictions, on which the business is currently working.

“These are shortage of available locomotives, mainly because of the long-standing locomotives and the ongoing challenges with the CRRC locomotives; a backlog in infrastructure maintenance; and the crippling effect of rampant cable theft and infrastructure vandalism. Significant progress is being made to improve Transnet’s capacity, and the inevitability of a growing return to rail cannot be ignored.”

“What the Group CEO did say, in response to a question by a member of the audience, is that thought needs to be given to the future of the trucking industry as Transnet increases its ability to carry bulk commodities, as a result of the improved availability of locomotives. The key opportunity for this sector lies in the last mile of the logistics chain in which Transnet does not participate.”

As the operation of the rail system improves, this, according to the statement, offers a chance for improved alignment between Transnet and the truckers.

“This is particularly important as many of the truckers are owner-drivers who would have used their pensions to get into new businesses. Transnet’s focus remains on resolving its binding constraints, and repositioning the company to play its rightful place in the economy.”

The remark was made on behalf of Mr. Andile Sangqu, Chairman of the Board of Directors.