On 26 April 2024, during a media briefing, Michelle Phillips, the Group Chief Executive Officer of Transnet, provided an update on the company’s recovery plan and the progress made in stabilising and advancing its operations. Launched in the previous year, the recovery plan was a commitment by Transnet to enhance transparency and keep stakeholders informed about its strategic efforts and operational progress.
Phillips highlighted that through regular engagement with customers, organised labour, and employees, Transnet has maintained a transparent dialogue regarding its performance and future objectives. This engagement has been crucial in aligning the entire organisation with the set targets and the overall strategic direction.
Despite the challenges, Transnet’s preliminary data for the fiscal year 2023-2024 shows promising outcomes: an increase in revenue, a reduction in operating costs, and, critically, an uptick in operational volumes, which saw a significant improvement in the latter half of the year. This improvement was attributed to enhanced operational processes, better accountability, improved oversight, and increased equipment availability, including a noteworthy return to service of a higher number of locomotives. (note the figures provided during the presentation are not audited figures).
Phillips also addressed the ongoing security challenges affecting infrastructure, stressing the national importance of protecting these assets to prevent network breaches that could impact all stakeholders. Additionally, adverse weather conditions and derailments were noted as significant hurdles that have impacted performance negatively.
In terms of specific achievements, Transnet nearly met its target of handling 154 million tonnes, coming close at 151.7 million tonnes. This was just 1.8% short of the target, a remarkable achievement considering the derailments that resulted in a substantial loss of nearly a million tonnes towards the year’s end.
On the operational front, improvements were noted across various sectors. The container sector performed commendably, nearly reaching the recovery plan target of 4.2 million TEUs, despite market challenges and operational constraints in the automotive and pipeline sectors.
Phillips commended the team’s efforts across the board and expressed optimism about continuing these improvements through further strategic initiatives, particularly emphasizing the importance of collaboration with key stakeholders such as the National Logistics Crisis Committee. This collaborative approach is instrumental in ensuring that Transnet’s recovery initiatives are executed with agility and precision.
As the briefing moved to discuss the specifics of rail reform and other strategic areas, it was clear that while challenges remain, the concerted efforts of Transnet’s leadership and workforce are steering the company towards a more stable future. The detailed financial results, pending audit completion, are eagerly awaited to quantify the full extent of the progress made to date.
