https://www.engineeringnews.co.za
Coal|Design|Export|Freight|Logistics|Ports|Power|rail|Roads|SECURITY|Transnet|Trucks|Locomotive
Coal|Design|Export|Freight|Logistics|Ports|Power|rail|Roads|SECURITY|Transnet|Trucks|Locomotive
coal|design|export|freight|logistics|ports|power|rail|roads|security|transnet|trucks|locomotive

Head of troubled coal line exits Transnet

Transnet Freight Rail

Photo by Creamer Media

23rd October 2023

By: News24Wire

  

Font size: - +

In the latest in a slew of resignations, Transnet’s managing executive for the critical export coal line, Ali Motala, is leaving the embattled State-owned company.

Several high-placed sources have confirmed Motala's departure from Transnet Freight Rail (TFR), although the terms of his departure remain unclear.

Motala’s exit follows the recent resignations of Transnet Group CEO Portia Derby, group CFO Nonkululeko Dlamini and TFR CEO Sizakele Mzimela.

Transnet had not responded to requests for comment at the time of publication, and Motala could not be reached for comment.

Long-serving TFR employee Motala joined the State-owned logistics company almost 30 years ago, during which time he has held various executive roles.

In late 2021, he was appointed head of Transnet Freight Rail’s (TFR) North Corridor. Prior to that, he had served as a strategic advisor in the office of the Transnet CEO.

The North Corridor is a critical line for the economy as it facilitates the movement of export coal from the Mpumalanga heartlands to the Richards Bay Coal Terminal (RBCT).

The line is also a key revenue driver for both TFR and the Transnet group as a whole.

But in the face of security challenges, locomotive shortages and other operational issues, the line has performed poorly and last year railed the lowest volumes of coal to RBCT in three decades. Meanwhile, roads to alternative ports have been battered by trucks as producers have tried to take advantage of attractive export coal prices. 

The challenges have persisted this year, and TFR has capped its annual targeted volumes at 60-million tonnes, as compared with a design capacity of 81-million tonnes per annum. Rail constraints are among the key reasons behind retrenchment processes that have been launched in the coal industry, most notably by Glencore and Seriti Power.  

Motala’s exit and the raft of resignations come just weeks after the group reported a R5.7-billion loss, prompting Public Enterprises Minister Pravin Gordhan to order a sweeping review by the new Transnet board.

The board was asked to look into a number of areas, including the performance of executive management and their ability to perform their duties.

In calling for the review, Gordhan also referred to the Auditor-General's findings, which had called for urgent and corrective action, particularly within the Transnet Freight Rail division.

TFR is also at the centre of a probe by the Special Investigating Unit (SIU), which is investigating a "ghost trains" criminal syndicate allegedly run by a network of Transnet employees and freight logistics middlemen.

The SIU’s Kaizer Kganyago told News24 it was too soon to say who had been implicated as the investigation was ongoing.

Edited by News24Wire

Comments

Showroom

Magni SA
Magni SA

Magni SA is committed to developing the safest Telehandlers available to our customers for underground and surface mining, construction, forestry,...

VISIT SHOWROOM 
Booyco Electronics
Booyco Electronics

Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 23 February 2024
Magazine round up | 23 February 2024
23rd February 2024
An image of Dr Mehran Zarrebini posing in front of waste tires
Firm emphasises valorisation
23rd February 2024 By: Lumkile Nkomfe
Coal being transported to port
Mining tax revenue down by 50.4% y/y
21st February 2024 By: Darren Parker

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
PLUS
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?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.316 0.369s - 165pq - 2rq
Subscribe Now