EFF STATEMENT ON TRANSNET'S INTENTION TO OUTSOURCE OPERATIONS OF THE JOHANNESBURG TO DURBAN LINE

Wednesday, 01 February 2023

The Economic Freedom Fighters (EFF) rejects Transnet's intention to outsource operations of its Johannesburg-to-Durban line to the private sector. The decision to outsource Transnet's strategic line is driven by greed and senseless profiteering by the private sector, that has nothing to do with improving industrialisation and South Africa's economy.

The intention to outsource such a strategic line of business to the private sector by Transnet is to support the extractive neo-colonial economy, that continues to steal Africa's mineral resources for the benefit of America and Europe. Failure to implement a comprehensive infrastructure expansion and maintenance plan undermined Transnet's operations on all fronts.

Transnet used to have the capacity to move over 200 million of cargo on an annual basis. There is no justification or evidence that outsourcing such a strategic and crucial function of Transnet will radically improve its operation.

The sabotage of Transnet, in particular, its build programme that was beginning to integrate Sub-Saharan Africa and the rest of the continent through the creation of competitive corridor supply chains meant to integrate ports and railways, is driven by greed. Transnet is a public strategic asset built with taxpayer money to support industrialisation efforts for the benefit of all South Africans.

To allow the outsourcing of such an important strategic line to be turned into a profit-making function when it was supposed to be meant for greater good is reactionary and confirms that Cyril Ramaphosa's prepaid presidency is paying its funders at the expense of workers and all South Africans.

There is nothing that was ever privatized or outsourced, and it was not marred by corruption and maladministration under the ANC government.

The EFF is vindicated because, since his appointment as Minister of Public Enterprises, Jamnandas Gordhan has been on a rampage to destroy strategic SOEs.

The destruction is meant to destroy the value of strategic SEOs so that he can sell them to his friends and cronies, using his daughter as a proxy and front, for a fraction of their true value. He started with SAA, which was sold for less than R55, and now he is going for Transnet and Denel.

The EFF will continue the fight on all fronts to demand Ramaphosa's resignation to bring an end to the destruction and collapse of SEOs before it is too late and South Africa is left without the necessary levers of industrialisation.

Statement issued by the EFF, 1 February 2023