President Cyril Ramaphosa has given Transnet a little more than a month to show ‘some improvement’ in the multi-billion-rand problems cause by its ‘incompetence and lack of action’, and says he wants ‘all the problems solved by next year’, according to News24.
Speaking to reporters on a visit to the port of Richards Bay on Thursday, Ramaphosa reportedly expressed confidence in Public Enterprises Minister Pravin Gordhan and Transnet executives’ ability to resolve issues contributing to the slow movement of goods at the ports.
News24 reports that, according to the South African Association of Freight Forwarders (SAAFF), Transnet inefficiencies at the country’s ports were costing the economy R98 million a day in direct, sunken costs and at least R26 million a day in indirect costs.
Port chaos was impeding at least R7 billion worth of goods from moving every day.
Around 71 000 containers are stuck on ships outside the port of Durban, a backlog which port officials say they will only be able to clear by next year.
News24 reports that the President admitted there had been a lack of maintenance of Transnet infrastructure, and that the state-owned entity had failed to maintain a close relationship with its customers.
The President is quoted as saying: ‘I’ve made it clear to Transnet that I want all the problems solved by next year. By the end of the first month [next year], we must see some improvement.
‘The incompetence and lack of action that we have seen here must be a matter that is dealt with immediate effect.’