{"id":65335,"date":"2024-04-30T08:48:02","date_gmt":"2024-04-30T08:48:02","guid":{"rendered":"https:\/\/www.africa-press.net\/south-africa\/all-news\/transnet-improving-but-still-short-of-targets"},"modified":"2024-04-30T17:50:28","modified_gmt":"2024-04-30T17:50:28","slug":"transnet-improving-but-still-short-of-targets","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/south-africa\/all-news\/transnet-improving-but-still-short-of-targets","title":{"rendered":"Transnet improving \u2013 but still short of targets"},"content":{"rendered":"

Africa-Press – South-Africa. <\/strong><\/span>State logistics group Transnet, says that, although there has been an uptick in the volume handled by its railways and ports and its revenue, these improvements still fall short of its self-set recovery goals.<\/p>\n

Along with a change in Transnet leadership, top executives have attributed much of these improvements (albeit slightly below its targets) to legislative reforms which have ultimately enabled the private sector to have a foot in the game.<\/p>\n

This was outlined when Transnet provided an update on its recovery process during a media briefing at its Johannesburg headquarters on April 26.<\/p>\n

The company reported that for the financial year that ended on March 31, 2024, it recorded:<\/p>\n

A 1.5% year-on-year improvement in total rail volumes, reaching 151.7-million tonnes;<\/p>\n

A 12.8% year-on-year increase in revenue to R77.69 billion;<\/p>\n

A 2.2% improvement in container handling to 4.15-million twenty foot equivalent units.<\/p>\n

Important to note is that these are preliminary estimates and the official audited year-end financial results are yet to be released.<\/p>\n

The improvement\u2014seen as crucial for an SOE that is around R130 billion in debt and has a port and railway infrastructure backlog of over R50 billion\u2014was slightly below its Recovery Plan targets (between 1 \u2013 2% below).<\/p>\n

Engineering News reported that group CEO Michelle Phillips said that some of these improvements are because \u201cwe\u2019ve had to improve on our equipment and rolling stock availability.\u201d<\/p>\n

\u201cWe\u2019ve been able to achieve a return to service of an increased number of locomotives [and we have] also seen, in the ports, delivery of some critical port equipment,\u201d she added.<\/p>\n

According to Transnet chairperson, Andile Sangqu, although Transnet is \u201cnot out of the woods yet,\u201d these results mark a \u201csignificant improvement\u201d in the SOE\u2019s rail, ports and balance sheets.<\/p>\n

Sangqu said that for even further improvements to be made, Transnet has reaffirmed its \u201ccommitment to attract private sector participation across the business.\u201d<\/p>\n

Recovery Plan<\/p>\n

In 2023, a National Logistics Crisis Committee was established comprising stakeholders in government and private business leaders.<\/p>\n

Additionally, following the appointment of a new board in July 2023, a phased Transnet Recovery Plan was introduced, which aims to stabilise the operational and financial performance by March 2025.<\/p>\n

This plan emphasises structural reforms in rail and terminal operations, largely through encouraging involvement from the private sector to improve the efficiency and, ultimately, the financial performance of its rail systems and ports.<\/p>\n

Rail reform<\/p>\n

Years of compounding rail inefficiencies at Transnet saw freight volumes decline to 150 million metric tons in financial year 2022\/23 from 226 million tons in the 2017\/18.<\/p>\n

<\/p>\n

While Transnet recorded an improved 151.7-million tonnes in the rail volumes at the end of March 2024, this figure still fell 1.8% short of its recovery plan target of 154.4-million tonnes for the 2023\/24 financial year.<\/p>\n

Group CEO Michelle Phillips said this is due to losing \u201cclose to a million tonnes in one of the derailments that we experienced towards the end of the year.\u201d<\/p>\n

Sangqu said that this improvement, albeit modest, can be attributed to changes in the legislative and regulatory regime in which the company operates, as outlined by the National Rail Policy and the Freight Logistics Roadmap.<\/p>\n

Sangqu said a major boost has come from \u201cprivate sector rail operators who see the long-term benefits that [the improvement of freight rail] will have on their own business development and on the economy as a whole.\u201d<\/p>\n

Legislation required publishing a draft Network Statement (as it did in late March 2024), which, according to the operator, \u201csignifies the beginning of a process for Transnet to open access to more operators on the network\u201d by detailing how the SOE plans to embrace the private sector as a partner for delivery in its 21,200km rail network.<\/p>\n

This is proposed to be done by selling rail slots on its network to third parties or private sector players, allowing them to introduce their electric locomotives, independently rail their goods to markets, and move traffic off-road and onto rail.<\/p>\n

\u201cWe also anticipate that new users may introduce alternative technologies and innovation that will make the system more effective and improve service quality [while] access fees will be used to maintain the rail network to a standard required for safe and reliable operations,\u201d said Sangqu.<\/p>\n

Port reform<\/p>\n

Sangqu acknowledged that international comparisons strongly suggest that South African ports are failing to achieve competitive outcomes and have created serious challenges for the economy.<\/p>\n

Sangqu referred to the World Bank\u2019s Container Port Performance Index 2020, published in 2021, where all of South Africa\u2019s commercial ports cluster at the bottom of the 351 ports evaluated based on objective data from shipping lines.<\/p>\n

In its quest for the recovery of its embattled ports, Sangqu said that Transnet \u201cwould accelerate private sector participation (PSPs) and strategic transactions.\u201d<\/p>\n

Transnet affirms its \u201ccommitment to attract private sector participation across the business is going to continue,\u201d said the chairman.<\/p>\n

aThe recovery of the embattled Port of Durban (which deals with approximately 31.4 million tons of cargo each year), along with the expansion and modernisation of the container capacity at ports through PSPs, is consistently emphasised by Sangqu as one of Transnet\u2019s top priorities.<\/p>\n

For More News And Analysis About South-Africa<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – South-Africa. State logistics group Transnet, says that, although there has been an uptick in the volume handled by its railways and ports and its revenue, these improvements still fall short of its self-set recovery goals. Along with a change in Transnet leadership, top executives have attributed much of these improvements (albeit slightly below […]<\/p>\n","protected":false},"author":84,"featured_media":65334,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5],"tags":[274,315,275],"class_list":["post-65335","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","tag-africa-press","tag-africa-press-south-africa","tag-south-africa-2"],"yoast_head":"\nTransnet improving \u2013 but still short of targets - South Africa<\/title>\n<meta name=\"description\" content=\"State logistics group Transnet, says that, although there has been an uptick in the volume handled by its railways and p ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/south-africa\/all-news\/transnet-improving-but-still-short-of-targets\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Transnet improving \u2013 but still short of targets\" \/>\n<meta property=\"og:description\" content=\"State logistics group Transnet, says that, although there has been an uptick in the volume handled by its railways and p ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/south-africa\/all-news\/transnet-improving-but-still-short-of-targets\" \/>\n<meta property=\"og:site_name\" content=\"South Africa\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-30T08:48:02+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-04-30T17:50:28+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2024\/04\/sm_1714456923.202063.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1024\" \/>\n\t<meta property=\"og:image:height\" content=\"683\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/transnet-improving-but-still-short-of-targets#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/transnet-improving-but-still-short-of-targets\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Transnet improving \u2013 but still short of targets\",\"datePublished\":\"2024-04-30T08:48:02+00:00\",\"dateModified\":\"2024-04-30T17:50:28+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/transnet-improving-but-still-short-of-targets\"},\"wordCount\":853,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/transnet-improving-but-still-short-of-targets#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2024\/04\/sm_1714456923.202063.jpg\",\"keywords\":[\"Africa Press\",\"Africa Press-South-Africa\",\"South-Africa\"],\"articleSection\":[\"all news\",\"economy\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/south-africa\/all-news\/transnet-improving-but-still-short-of-targets#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/transnet-improving-but-still-short-of-targets\",\"url\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/transnet-improving-but-still-short-of-targets\",\"name\":\"Transnet improving \u2013 but still short of targets - South Africa\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/transnet-improving-but-still-short-of-targets#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/transnet-improving-but-still-short-of-targets#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2024\/04\/sm_1714456923.202063.jpg\",\"datePublished\":\"2024-04-30T08:48:02+00:00\",\"dateModified\":\"2024-04-30T17:50:28+00:00\",\"author\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"description\":\"State logistics group Transnet, says that, although there has been an uptick in the volume handled by its railways and p ...\",\"breadcrumb\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/transnet-improving-but-still-short-of-targets#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.africa-press.net\/south-africa\/all-news\/transnet-improving-but-still-short-of-targets\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/transnet-improving-but-still-short-of-targets#primaryimage\",\"url\":\"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2024\/04\/sm_1714456923.202063.jpg\",\"contentUrl\":\"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2024\/04\/sm_1714456923.202063.jpg\",\"width\":1024,\"height\":683,\"caption\":\"Transnet improving \u2013 but still short of targets\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/transnet-improving-but-still-short-of-targets#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.africa-press.net\/south-africa\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Transnet improving \u2013 but still short of targets\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/#website\",\"url\":\"https:\/\/www.africa-press.net\/south-africa\/\",\"name\":\"South Africa\",\"description\":\"Just another Africa News Agency Sites site\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.africa-press.net\/south-africa\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\",\"name\":\"cfeditoren\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/7417380fa9e23b5c57fdbfdaf3fdf92ee478f759a084addda5faa3732853e74a?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/7417380fa9e23b5c57fdbfdaf3fdf92ee478f759a084addda5faa3732853e74a?s=96&d=mm&r=g\",\"caption\":\"cfeditoren\"}}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Transnet improving \u2013 but still short of targets - South Africa","description":"State logistics group Transnet, says that, although there has been an uptick in the volume handled by its railways and p ...","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.africa-press.net\/south-africa\/all-news\/transnet-improving-but-still-short-of-targets","og_locale":"en_US","og_type":"article","og_title":"Transnet improving \u2013 but still short of targets","og_description":"State logistics group Transnet, says that, although there has been an uptick in the volume handled by its railways and p ...","og_url":"https:\/\/www.africa-press.net\/south-africa\/all-news\/transnet-improving-but-still-short-of-targets","og_site_name":"South Africa","article_publisher":"https:\/\/www.facebook.com\/AfricaPressTunisiaa","article_published_time":"2024-04-30T08:48:02+00:00","article_modified_time":"2024-04-30T17:50:28+00:00","og_image":[{"width":1024,"height":683,"url":"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2024\/04\/sm_1714456923.202063.jpg","type":"image\/jpeg"}],"author":"cfeditoren","twitter_card":"summary_large_image","twitter_misc":{"Written by":"cfeditoren","Est. reading time":"5 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.africa-press.net\/south-africa\/all-news\/transnet-improving-but-still-short-of-targets#article","isPartOf":{"@id":"https:\/\/www.africa-press.net\/south-africa\/all-news\/transnet-improving-but-still-short-of-targets"},"author":{"name":"cfeditoren","@id":"https:\/\/www.africa-press.net\/south-africa\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb"},"headline":"Transnet improving \u2013 but still short of targets","datePublished":"2024-04-30T08:48:02+00:00","dateModified":"2024-04-30T17:50:28+00:00","mainEntityOfPage":{"@id":"https:\/\/www.africa-press.net\/south-africa\/all-news\/transnet-improving-but-still-short-of-targets"},"wordCount":853,"commentCount":0,"image":{"@id":"https:\/\/www.africa-press.net\/south-africa\/all-news\/transnet-improving-but-still-short-of-targets#primaryimage"},"thumbnailUrl":"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2024\/04\/sm_1714456923.202063.jpg","keywords":["Africa Press","Africa Press-South-Africa","South-Africa"],"articleSection":["all news","economy"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.africa-press.net\/south-africa\/all-news\/transnet-improving-but-still-short-of-targets#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.africa-press.net\/south-africa\/all-news\/transnet-improving-but-still-short-of-targets","url":"https:\/\/www.africa-press.net\/south-africa\/all-news\/transnet-improving-but-still-short-of-targets","name":"Transnet improving \u2013 but still short of targets - South Africa","isPartOf":{"@id":"https:\/\/www.africa-press.net\/south-africa\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.africa-press.net\/south-africa\/all-news\/transnet-improving-but-still-short-of-targets#primaryimage"},"image":{"@id":"https:\/\/www.africa-press.net\/south-africa\/all-news\/transnet-improving-but-still-short-of-targets#primaryimage"},"thumbnailUrl":"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2024\/04\/sm_1714456923.202063.jpg","datePublished":"2024-04-30T08:48:02+00:00","dateModified":"2024-04-30T17:50:28+00:00","author":{"@id":"https:\/\/www.africa-press.net\/south-africa\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb"},"description":"State logistics group Transnet, says that, although there has been an uptick in the volume handled by its railways and p ...","breadcrumb":{"@id":"https:\/\/www.africa-press.net\/south-africa\/all-news\/transnet-improving-but-still-short-of-targets#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.africa-press.net\/south-africa\/all-news\/transnet-improving-but-still-short-of-targets"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.africa-press.net\/south-africa\/all-news\/transnet-improving-but-still-short-of-targets#primaryimage","url":"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2024\/04\/sm_1714456923.202063.jpg","contentUrl":"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2024\/04\/sm_1714456923.202063.jpg","width":1024,"height":683,"caption":"Transnet improving \u2013 but still short of targets"},{"@type":"BreadcrumbList","@id":"https:\/\/www.africa-press.net\/south-africa\/all-news\/transnet-improving-but-still-short-of-targets#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.africa-press.net\/south-africa\/"},{"@type":"ListItem","position":2,"name":"Transnet improving \u2013 but still short of targets"}]},{"@type":"WebSite","@id":"https:\/\/www.africa-press.net\/south-africa\/#website","url":"https:\/\/www.africa-press.net\/south-africa\/","name":"South Africa","description":"Just another Africa News Agency Sites site","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.africa-press.net\/south-africa\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.africa-press.net\/south-africa\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb","name":"cfeditoren","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.africa-press.net\/south-africa\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/7417380fa9e23b5c57fdbfdaf3fdf92ee478f759a084addda5faa3732853e74a?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/7417380fa9e23b5c57fdbfdaf3fdf92ee478f759a084addda5faa3732853e74a?s=96&d=mm&r=g","caption":"cfeditoren"}}]}},"_links":{"self":[{"href":"https:\/\/www.africa-press.net\/south-africa\/wp-json\/wp\/v2\/posts\/65335","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.africa-press.net\/south-africa\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.africa-press.net\/south-africa\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.africa-press.net\/south-africa\/wp-json\/wp\/v2\/users\/84"}],"replies":[{"embeddable":true,"href":"https:\/\/www.africa-press.net\/south-africa\/wp-json\/wp\/v2\/comments?post=65335"}],"version-history":[{"count":0,"href":"https:\/\/www.africa-press.net\/south-africa\/wp-json\/wp\/v2\/posts\/65335\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.africa-press.net\/south-africa\/wp-json\/wp\/v2\/media\/65334"}],"wp:attachment":[{"href":"https:\/\/www.africa-press.net\/south-africa\/wp-json\/wp\/v2\/media?parent=65335"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.africa-press.net\/south-africa\/wp-json\/wp\/v2\/categories?post=65335"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.africa-press.net\/south-africa\/wp-json\/wp\/v2\/tags?post=65335"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}