Transnet CEO Portia Derby’s comments on trucking industry ‘taken out of context’

Transnet has defended its Group CEO, Portia Derby, against what it called a misrepresentation of her comments.

Addressing a Bloomberg event on Friday, Derby reportedly said Transnet’s logistic problems, caused by vandalism and other factors, had forced mining companies to switch to trucks to transport commodities.

ALSO READ: Things are looking up at Transnet, but…

According to Derby, mining companies chose this more expensive option to take advantage of the higher commodity prices.

However, the trucking option would not be sustainable in the wake of lower commodity prices and the improvement of Transnet’s rail operations, she said.

She called for a model that would include truckers long-term.

“We have created the demand — our failure on one hand and also the demand of the mining industry has created the trucking industry,” she was quoted as saying by Bloomberg.

“For the vast majority of the truckers they are moms and pops, who when they left work took their pensions and bought a truck because there was an opportunity.”

ALSO READ: Gordhan hits back after Mbalula’s Transnet jibe

Derby has been highly criticised for her comments, with some arguing why she was concerned about the job losses in the trucking industry instead of fixing Transnet’s rail system.

Transnet ‘clarifies’ comments

In a statement on Friday, Transnet defended its CEO, saying her comments had been taken out of context.

“Ms Derby’s comments, which were in response to a question from the floor, related to the huge growth in trucking in SA as result of the poor performance of rail and boom in global coal demand, have been taken out of context,” said chairperson of the board of directors, Andile Sangqu.

Sangqu said suggestions that Derby said there would be major job losses once the company improved its rail services were inaccurate.

“Significant progress is being made to improve Transnet’s capacity, and the inevitability of a growing return to rail cannot be ignored. A number of initiatives are underway inside Transnet to this effect,” said Sangqu.

ALSO READ: Transnet calls for bids to develop new Richards Bay container terminal

“Group CE did say, in response to a question by a member of the audience, that thought needs to be given to the future of the trucking industry as Transnet increases its ability to carry bulk commodities, as a result of the improved availability of locomotives.

“The key opportunity for this sector lies in the last mile of the logistics chain in which Transnet does not participate. This provides an opportunity for better alignment between Transnet and the truckers as rail’s performance improves.

“This is particularly important as many of the truckers are owner-drivers who would have used their pensions to get into new businesses. Transnet’s focus remains on resolving its binding constraints, and repositioning the company to play its rightful place in the economy.”