Getting back on track: Transnet Freight Rail looking to make profits again

Despite reeling from challenges such as recovering from billions lost during the Gupta-era state capture, cable theft on the container corridor and finding spare parts for several stationary locomotives, Transnet Freight Rail (TFR) chief executive Sizakele Mzimela is confident about returning the state-owned enterprise to profitability.

Having sought a high court order last year, TFR’s biggest challenge has been to compel China Railway Rolling Stock Corporation (CRRC) E-Loco Supply to release spare parts and components required to return 120 locomotives to service – a development which has impacted on the freight volumes moved.

TFR has been struggling to access spare parts and components to bring back to service 53 class 20E and 67 class 21E locomotives, which have been standing idle.

Mzimela said on Thursday: “On locomotives, we are making progress, although things may take a bit of time – depending on what the solution ends up being, in respect of the CRRC locomotives.

“This issue of the locomotives remains as a huge challenge. The big issue on moving more freight volumes has been about the locomotives.

“We have now gone out to tender. One is a step-in OEM [original equipment manufacturer] to help us to repair the long-standing Chinese locomotives.

“But we are also looking at our other fleet from other OEMs to see if we can fast-track the repair of some of those locomotives. Ultimately, we need to move cargo.”

On the impact of state capture at TFR, Mzimela said there were “a number of people that have left the organisation, especially those linked to state capture”.

“But state capture goes beyond the locomotives and anything else. On the other part of the business, there has been significant improvement in governance and change in culture of how people are focused.

“We have put in place proper systems and proper governance structures to limit a recurrence of what happened in the past. “I don’t think anybody appreciated the damage state capture did to any organisation.

“Over and above that, there is lots of work being done to improve the infrastructure.

“We are now collaborating with various customers to assist us address security concerns.”

To address security concerns on the container corridor, Mzimela said: “We were approved as Transnet by the minister of justice to have the ability to appoint peace officers.

“Once those peace officers are trained, we want to utilise them in case management, because we do catch a lot of people who tamper with our infrastructure, but the conviction rate is as low as 4%.

“We have found that the manner in which the case has been prepared in not up to standard, resulting in a low conviction rate.

“So, we have been given this status as Transnet to appoint peace officers. Training them and utilising them in that area, is key.”

Bullish on the TFR future, she said: “Turning things around is highly dependent on the people’s commitment to do so.

“I truly believe that at any day and at any point, it can be tested that we have experienced and committed people in the rail space.

“Obviously, one has to create the space for them to do the things that they know it can be done to turn the business around.

“That also speaks to the limitation of the speed at which we are able to bring in key material to undertake the necessary repairs. We are aware of the limitations of bringing material.”