https://newsletter.en.creamermedia.com
Africa|Business|Coal|Container|Freight|Logistics|Ports|rail|Repairs|Service|Transnet
Africa|Business|Coal|Container|Freight|Logistics|Ports|rail|Repairs|Service|Transnet
africa|business|coal|container|freight|logistics|ports|rail|repairs|service|transnet

Transnet says indebted companies are behind the calls for its CEO’s removal

Transnet CEO Portia Derby

Transnet CEO Portia Derby

21st September 2023

By: Bloomberg

  

Font size: - +

South Africa’s beleaguered state ports and rail company deepened its feud with the private sector, accusing business chambers of intimidation because they owe it money.

A September 12 letter from a business chamber in Durban, the site of Africa’s biggest container port, to the minister of public enterprises, called for Transnet’s CEO Portia Derby and her team to be removed because of the woeful state of the nation’s ports and freight rail service.

Prasheen Maharaj, president of the Durban Chamber of Commerce and Industry, is also the CEO of Sandock Austral Shipyards, a unit of which is in a court dispute with Transnet over R116-million in rent that allegedly hasn’t been paid, documents seen and confirmed by Bloomberg show.

“Those who owe money will have to pay, and the company will not be intimidated,” Transnet said in a statement on Thursday, which detailed the regular interactions it has with the chamber in a bid to resolve operational issues. “Transnet will no longer tolerate a distortion of public discourse by individuals who fail to disclose their true motives.”

Maharaj said a response to Transnet’s statement will be issued after “we have followed the governance procedures of the Durban Chamber.”

Maharaj’s company uses sites at the Port of Durban, owned and run by Transnet, for shipbuilding and ship repairs and is in a dispute with the logistics operator after its rent was increased in 2015, the state firm said in the documents. The amount due, initially almost R43-million, has escalated due to interest and other “unpaid rentals,” Transnet said. The case is currently before the Durban High Court.

Transnet didn’t respond to a request for further comment on the dispute with Maharaj’s company.

Public Enterprises Minister Pravin Gordhan, in a statement on Tuesday, acknowledged the letter from the Durban Chamber and other groups and said a directive he gave to Transnet’s board three weeks ago to make recommendations on how to improve performance included a review of management.

In 2022, the tonnage of coal railed to the Richards Bay Coal Terminal fell to a 30-year low. A 2021 World Bank index of container port performance ranked Durban 364th out of 370 and two other Transnet ports were also in the bottom 10.

Edited by Bloomberg

Comments

Showroom

SAIMC (Society for Automation, Instrumentation, Mechatronics and Control)
SAIMC (Society for Automation, Instrumentation, Mechatronics and Control)

Education: Consulting with member companies to obtain the optimal benefits from their B-BBEE spending, skills resources as well as B-BBEE points

VISIT SHOWROOM 
Alcohol Breathalysers
Alcohol Breathalysers

Supplier & Distributor of the Widest Range of Accurate & Easy-to-Use Alcohol Breathalysers

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Photo of Martin Creamer
On-The-Air (15/11/2024)
15th November 2024 By: Martin Creamer

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:2.946 3.054s - 191pq - 2rq
Subscribe Now