Public Enterprises Committee receives update on progress at Transnet
7 September 2023
The Portfolio Committee on Public Enterprises received an update today from Transnet on its business operations, rail concessions, maintenance and infrastructure development.
Explaining the context of the meeting, the Chairperson of the committee, Mr Khaya Magaxa, said that the committee called the Department of Public Enterprises to appear before it with state-owned entities such as Transnet as they are a life blood of the South African economy. Furthermore, part of the committee’s mandate is to see how public entities are remodeled to build their capacities to advance their transformational agendas.
Leading the department, Minister Pravin Gordhan began by explaining that both internal and external issues have led to Transnet’s poor financial performance. He has asked the Transnet board to investigate various contributing factors to these challenges so that the board and the executive can improve the financial forecast of its various business operations in the coming financial years. He reassured the committee that each Transnet division is engaged in various initiatives to achieve this.
Transnet’s board Chairperson stated that the new board has hit the ground running and has identified issues contributing to Transnet’s poor financial performance. The board’s priority is to return to basics so that Transnet can improve its operational divisions and businesses as a matter of urgency.