Gordhan’s deep structural reforms for SA’s state-owned enterprises

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Gordhan’s deep structural reforms for SA’s state-owned enterprises
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It may look like Public Enterprises Minister Pravin Gordhan has been out of the spotlight due to government’s drive against the Covid-19 Coronavirus pandemic.

But just because he is not part of President Cyril Ramaphosa’s core intervention team, doesn’t mean he’s taken a back seat – “he continues to knuckle down, working on his portfolio in collaboration with the rest of his Cabinet colleagues”.

“The ultimate goal is to drive deep structural reforms in the energy industry through, for example, creating competition within the generation sector, both within the state-owned assets and the private sector,” Mkokeli said.The departments had identified potential in Transnet’s freight and port facilities including the pipeline, he said, adding that “the company needs to create operational efficiencies that can be felt by everyone, not just business”.

“The restructuring of our airlines is a work in progress and we will announce our course of action shortly,” he said.In an interview last weekend Finance Minister Tito Mboweni cited as priority the necessity for speed in the creation of a new airline to take over from SAA, as well as well as intervention in the suboptimal Durban Harbour.

“The road that is the entry way to the port has remained the same size for the last 20 years and therefore is not capacitated to support the growing number of container and bulk trucks visiting the precinct,” he said. “The container terminal operates 24 hours a day, seven days a week and 365 day a year, whereas most port users, depots, packing warehouses and trucking companies operate eight hours a day and five days a week.”

Mkokeli said that in 2020 Transnet would be spending R2 billion to replace old and ageing equipment, starting with the two-year delivery programme of 45 new straddle carriers – freight carrying vehicles – for the Port of Durban.

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