The Department of Public Enterprises has acknowledged that Transnet has lost a large number of highly experienced employees and is attempting to remedy the situation.
The department is collaborating with Transnet’s board on a turnaround strategy for the failing state-owned enterprise.
Minister of Public Enterprises Pravin Gordhan lamented the decision by previous administrations to allow a significant portion of Transnet’s highly skilled personnel to accept voluntary severance packages.
This, according to Gordhan, was one of the factors that lead to Transnet’s dire situation.
“Firstly, we have a debt burden of approximately R147 billion; secondly, export volumes have been declining; and thirdly, declining volumes imply less revenue for Transnet, less process for companies, and thus less corporate tax and tax collection. Thus, a vicious cycle exists.”