- Working with the private sector is important in the process of getting Eskom and Transnet back on track, says Transnet's group chief executive.
- Transnet wants to actively use its property portfolio to help its balance sheet going forward.
- Another important issue is to establish a direct link between SA and China, which remains the world's manufacturing hub.
Eskom and Transnet are two important enterprises for the SA economy and the sooner they get back on track, the better for the country, Transnet group chief executive Portia Derby said on Tuesday.
Working with the private sector is important in this regard.
During a webinar hosted by law firm ENSafrica on Tuesday, she said Transnet wanted to actively use its property portfolio, especially in city centres, to help its balance sheet going forward.
"We will reinvest in city centres and move back to rebuild urban centres. Covid-19 is teaching us that it is important to go back to open shopping centres," said Derby.
She also said Transnet was getting ready for whatever competition might present itself in future.
Mining sector is important
"The mining sector is a very important customer of ours. We have been reviewing how we are doing our strategic planning and looking at commodity flows. We need to do a lot of work to move [things] as efficiently as possible. We want to focus on fixing our rail network," she added.
"We also want to see how we can consolidate our coal export channel to improve efficiencies and work with the private sector in this regard. As for iron ore, if we can get environmental approvals for Saldanha, we should be able to increase exports. A lot of hard work has gone into this and we must ensure to bring in all of the emerging players as well."
As for the harbour in Maputo, Mozambique, there have been some engagements to look at the potential of establishing a "pit-to-port operation corridor to fast track movement trough the border post to the port.
"In the coming financial year we should see some serious progress in that direction. It might enable us to participate on a more active basis inside the port," she said.
SA's port capacity dropped
She pointed out that South Africa used to have the biggest port capacity in Africa. It has now moved down to number three.
"Durban is our biggest port and must become a hub. A lot of investment would have to be put in and we must ensure our unions come along with us," she said.
Another important issue is to establish a direct link between SA and China, which remains the world's manufacturing hub.
"A large focus going forward for us is looking for investment. We want to partner with the private sector on fair terms and ensure appropriate cross subsidies. We are trying to have a much more responsive Transnet [that is] better able to take criticism, and when we engage, we do not shy away from the market," said Derby.
"We think there needs to be increased utilisation of the rail system. We need to make sure the system is maintained and slots [are] available for private players. We have to respect to our workers. We are talking to unions on how our bargaining council can allow new players so they can compete on an equal footing."