Question NW3304 to the Minister of Public Enterprises

Question

Response

a) How NLCC assisted Transnet in addressing operational challenges.

Transnet Operating Divisions (TFR, TNPA, and TPT) together with Business 4 South Africa (B4SA) technical experts, the private sector, and customers, have formulated Corridor Recovery Teams (CRT) to address Transnet operational challenges.

The operational teams are progressing in implementing governance structures that will assist in the execution of the NLCC’s plans. This has assisted in the development of the Transnet turnaround strategy, which has identified deliverables for each corridor (Coal, Chrome and Magnetite, Iron Ore, and Manganese).

In addition to the rail and ports operations, work-stream 1, the following supporting work-streams have been established so far:

Work-stream 5, which focuses on addressing challenges in the procurement system, including local content requirements as well as legislative changes/exemptions to improve efficiency in the freight and logistics procurement process.

1. Work-stream 7, which deals with securing railway infrastructure, including addressing cable theft and vandalism on the container corridor, the coal line, the ore line, and pipelines.

1. Work-stream 8, which focuses on communicating the NLCC/Transnet Strategy to the public in a coherent and effective manner, including regular progress updates.

1. Work-streams 4 & 6 are on the structural rail reform of the freight and logistics system and financing and are yet to have their inaugural meetings.

The workstreams are at an early stage and it is anticipated that significant results in operations will be achieved in 2024.

b) How NLCC has addressed the concerns of exporters

The Corridor Recovery Teams will cover both importers and exporters, and their concerns will be addressed in the Transnet turnaround strategy.