National Treasury gives Transnet R47 Billion bailout

MINISTER OF FINANCE CONCURS TO A R47 BILLION GUARANTEE FACILITY FOR TRANSNET IN SUPPORT OF ITS RECOVERY PLAN

The Road Freight Association responds to Transnet's bailout by National Treasury

Media Statement from The Road Freight Association

The Road Freight Association (RFA) takes note of the bailout by Treasury of Transnet.

Whilst this is heartening, Transnet has received allocations and presumably bailouts from Treasury before – and the question still remains whether the management, operational foresight and control that was required for many years, will now come into play. It has not done so before – so the question is whether this will "suddenly" now happen – or are we to see a similar experience as happened with South African Airways (SAA), where countless "bailouts" occurred without the desired result.

The RFA is fully aware that there are both infrastructure and equipment interventions that require capital, but it remains convinced that an attitudinal and management change is required within Transnet, as well as the core supportive state owned entities (SOEs) that are in the logistics supply chain.

The allocation of funding to Transnet is a good step in the right direction – and the RFA looks forward to seeing (and experiencing) vastly changed efficiencies from the port and rail services controlled by Transnet.

Issued by Gavin Kelly, the Chief Executive Officer of the Road Freight Association

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