Public Enterprises Committee unhappy with report presented by Transnet

16 February 2023

The Portfolio Committee on Public Enterprises was unhappy with the report presented by Transnet during a briefing from the state-owned ports and freight rail operator on its overall business.
 
Briefing the committee, Transnet Group CEO Ms Portia Derby said the company has gone out to market seeking qualified parties interested in entering into an operating lease with Transnet for the operation of the container corridor.
 
Members of the committee responded saying the government had not instructed Transnet to privatise any of its business and should rather concentrate of developmental projects. Committee members expressed their frustration that Transnet is not following government’s mandate for state-owned companies.
 
The committee said from their analysis of the report presented, it appears Transnet intends to give slots through the lease arrangement because the slots are not profitable. However, the committee questioned why the private sector would invest in an unprofitable business. Transnet replied it is experiencing many financial challenges and various other constraints. However, Transnet emphasised it is not privatising.
 
The committee said it will not entertain such a report. “There is more we need to uncover as to what is happening within the company. You are responsible to ensure the policy of government gets implemented and if you are not doing that, what is it that you are doing on a daily basis?”

Issued by Yoliswa Landu, Parliamentary Communication Services, 16 February 2023