New Transnet boss is a mover and shaker

Transnet’s road to recovery will depend on newly appointed CEO Michelle Phillips – a mover and shaker who has saved the state-owned enterprise more than R1 billion over the past 18 months.

And she’ll have Nosipho Maphumulo as group chief financial officer by her side – both critical appointments, Minister of Public Enterprises Pravin Gordhan said.

ALSO READ: Gordhan announces new leadership at Transnet: Michelle Phillips is new GCEO

“They represent our steadfast commitment as government to equip Transnet with a competent and experienced executive leadership team to drive the strategic interventions that the board has put in place as part of the recovery plan,” Gordhan said.

Sasol and Transnet Freight Rail (TFR), an operating division of Transnet and owner of South Africa’s railway, ports and pipeline infrastructure, announced a first of its kind public-private partnership to improve rail transport reliability in South Africa.

Under the five-year agreement, Transnet will deliver ammonia from Sasol’s Secunda and Sasolburg facilities to the company’s customers through a fleet of 128 tankers.

Sasol Chemicals produces and sells more than 540 000 tons of ammonia annually. In turn, Sasol will fund Transnet’s maintenance and repair programme for the fleet.

The value of the contract has not been disclosed. Transnet’s financial crisis intensified in October last year, after losing millions in revenue due to delays in moving shipping containers through its key port in Durban.

Economist Chris Hart, executive chair of the Impact Investment Group of Companies, said Transnet has battled to meet the needs of the economy over the last few years.

ALSO READ: Transnet inefficiencies costing South Africa R1 billion a day

“But the value of them being able to do a public-private partnership enables them to tailor the services that they need.” The partnership “helps bridge the increasing divide in this country between the government and private sector”, Hart said.

“Transnet is battling with capital and this helps put capital in. It gives them greater capacity to operate the infrastructure they have and improve the ability to attract customers back,” Hart added.

Sasol vice-president for base chemicals David Mokomela said Sasol’s partnership with Transnet was an investment in SA’s rail infrastructure network.

“It is a critical economic driver for the country and a key business enabler for Sasol. “The result will improve service to our customers and give us the transport capacity and reliability we need to respond to growing market demand,” Mokomela said.

Hart said Transnet does need leadership stability so that it can bed down a proper long term strategy. “If you’re getting a change in leadership, your strategy and your long-term goals can also change with the leadership.”

Business Leadership South Africa (BLSA) welcomed the appointment of a permanent executive team and applauded the Transnet board for choosing worthy candidates to lead the stateowned entity.

ALSO READ: Gordhan ‘confident’ in Transnet board amid calls for change in leadership

BLSA CEO Busisiwe Mavuso said she worked closely with Phillips the last six months as part of the critical transport logistics work stream.

“She has demonstrated her decisiveness and ability to get things done,” Mavuso said. “She was the acting CEO when we achieved a 45% reduction in vessels anchored outside Durban port and a 36% reduction in the waiting time to anchor for container vessels.”

Gordhan said when Phillips joined Transnet she found an operating division with poor governance, theft and poor performance and she has turned that around.

“She has saved the business R1.5 billion over a period of 18 months,” he said.