She is hopeful that the Transnet ship can be turned around six months after starting with the entity’s 18 month recovery plan.
Phillips is hopeful that the Transnet ship can be turned around six months after starting with the entity’s 18 month recovery plan.New Transnet CEO, Michelle Phillips, is confident that the state-owned enterprise will meet its recovery plan targets although it is spending R1 billion per month to service its debts.
“Transnet is too big to fail,” she said. The new leadership team, the board, organised labour, Transnet customers and private sector partners have rallied together and have been working since October 2023 on an 18-month recovery plan. Phillips points out that Transnet’s interest on its debt is upwards of R1 billion a month. “It is very difficult to run a business like that. You are essentially paying your bond with your credit card.”Phillips says Transnet’s current challenges are due to a lack of maintaining infrastructure, failure to invest or under-investment in necessary infrastructure and not focusing on generating revenue.
Phillips points out that one of those guarantee conditions was the corporatisation of the Transnet National Ports Authority , which she says is expected to be in place by April 2025. Transnet is also currently busy with the separation of Transnet Freight Rail into Infrastructure Management and Freight and Rail.The opening of the rail network to third parties is also moving ahead. “We are very pleased with the level of interaction from other stakeholders within the industry.
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