Question NW358 to the Minister of Public Enterprises
22 March 2024 - NW358
Manyi, Mr M to ask the Minister of Public Enterprises
In light of the pending tender for the Trans-Kalahari Railway Project in Namibia, what proactive steps has he taken to prevent further diversion of cargo traffic away from the Republic’s ports and safeguard the interests of Transnet against potential loss of business? NW402E
Reply:
According to the information received from Transnet:
Preliminary competitor analysis demonstrates that the Trans-Kalahari Railway project and port developments in Namibia will have a minimal impact on Transnet Port Terminal’s long term volume growth. This is chiefly due to the following reasons:
- At the time of commercial operation of the Trans-Kalahari railway project, Transnet would have stabilized its rail and terminal operations as per the approved turnaround plan thus significantly reducing Customer churn rate.
- Transnet will continue with the implementation of long-term contracting regimes with predictable commercial arrangements. This will ensure volume growth and long-term sustainability for the Iron Ore and Manganese Customers who are targeted by the Trans-Kalahari project.
- Transnet is future-proofing its operations by creating additional capacity in line with Customer validated demand to neutralize any potential volume and revenue leakage.
Transnet must anticipate competition from other ports and rail corridors and “raise the bar” in respect of both infrastructure maintenance and operational efficiency. This is now taking place under the rubric of the Transnet Recovery Plan, notwithstanding the huge financial, operational and governance damage done during the State Capture period.
Remarks: Reply: Approved / Not Approved/Comments
Jacky Molisane P J Gordhan, MP
Acting Director-General Minister
Date: Date: