When Public Enterprises Minister Pravin Gordhan asked for a solution to not only Transnet’s locomotive problem but also South Africa’s wider energy and logistics crises during a recent visit to China, a consortium led by the state-owned China Communications Construction Company went to work.
Transnet recently saw the departure of its group CEO Portia Derby, group CFO Nonkululeko Dlamini, and the CEO of Transnet Freight Rail , its largest subsidiary, Siza Mzimela – and it is not clear when these positions will be filled permanently.Here’s what needs to happen after the night of long knives at Transnet
CCCC now proposes to lease all the locomotives from Transnet together with coaches and railway lines and appoint an operator to provide the service using state-of-the-art rail management systems. The rationale is to increase the efficiency of business in provinces that contribute almost 70% to the country’s GDP. The consortium believes this can be done within three to five years after completion of the feasibility study.