Embattled Transnet seeks South Africa’s support to turnaround

16th October 2023

By: Bloomberg


Font size: - +

South Africa’s embattled State-owned freight-rail and ports company identified areas that require immediate state support in a turnaround plan that is being submitted to the government.

Transnet's board plans to meet the Ministry of Public Enterprises and the Ministry of Finance this week to discuss the plan, it said in an emailed statement on October 14. Once approved by Public Enterprises Minister Pravin Gordhan’s department, it will be discussed with labor unions, employees, customers and lenders, the company said.

Last week, a plan was submitted to the presidency setting out ways to reverse the collapse of Transnet that has cost Africa’s most-industrialized economy $26.7-billion since 2010. Volumes of iron-ore and coal shipped through the company’s freight rail network for export have dropped because of issues including vandalism, idle locomotives and cable theft.

The government has begun talks with the World Bank for a $1-billion loan to upgrade Transnet’s rail infrastructure and support state power utility Eskom Holdings’s transmission unit, Johannesburg-based newspaper Business Day reported October 13.

Transnet’s turnaround plan sets out operational and financial initiatives that must be implemented over the next six, 12 and 18 months to stabilise the business, according to the statement. It’s prioritized the filling of three executive positions, following the resignations of its chief executive officer and head of its freight-rail division earlier this month. Former chairperson Popo Molefe also quit the board last week.

Edited by Bloomberg




SAIMC (Society for Automation, Instrumentation, Mechatronics and Control)
SAIMC (Society for Automation, Instrumentation, Mechatronics and Control)

Education: Consulting with member companies to obtain the optimal benefits from their B-BBEE spending, skills resources as well as B-BBEE points

Aqs image
AQS Liquid Transfer

AxFlow AQS Liquid Transfer (Pty) Ltd is an Importer and Distributor of Pumps in Southern Africa


Latest Multimedia

sponsored by

Magazine round up | 12 April 2024
Magazine round up | 12 April 2024
12th April 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?







sq:0.245 0.302s - 161pq - 2rq
Subscribe Now