Transnet
Business Unity South Africa has welcomed the appointment of a permanent executive team at Transnet, announced on Wednesday by the Minister of Public Enterprises, Pravin Gordhan.
The organisation said it had been "partnering with government" since June last year to address the challenges facing the transport and logistics sector, and the resultant effect on economic and job growth.
Busa president, Mxolisi Mgojo, said the appointment of the new Transnet team will enhance stability in the relationships between the parties and accelerate progress in implementing the Transnet Recovery Plan (TRP).
"We have, over the past months, seen a much-needed improvement in the relationship between the country's transport and logistics authorities and those businesses whose existence is dependent on efficient and effective logistics," he said.
However, he said this progress, while valuable and necessary, was only the first step in addressing the crisis. Stability is essential to sustain the good work being done.
"The state of the country's rail networks and ports is costing the economy an estimated R1 billion per day. Approximately R50 billion was lost in the minerals sector alone in 2023.
"The International Monetary Fund has almost halved its growth outlook for SA in 2024, largely due to Transnet's struggles to effectively administer our ports and freight rail.
"The total cost to the South African economy in 2023 resulting from Transnet's inefficiencies was approximately R450 billion, equivalent to 6% of GDP," he said.
Busa said this all results in reduced tax revenue, increased sovereign credit risk, and higher transport costs for commuters (as much as 40% of monthly income for the poorest South Africans).
These pervasive, critical inefficiencies are having a daily depressive effect on economic performance, capital investment, and job growth.
Mgojo said this was fast eroding South Africa's regional competitiveness as well as the country's economic potential, which could give way to ports in Dar Es Salaam, Beira, Maputo, Mombasa, and Walvis Bay, which are expanding with new private terminals, and railway lines are being built, upgraded, or reopened.
