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Johannesburg - Acting Transnet CEO Chris Wells said on Wednesday the freight and logistics parastatal is ready to "facilitate economic growth instead of constraining it" for the first time in decades.
In a self-written column published in Business Report, Wells said Transnet has nearly completed the expansion and deepening of Durban harbour.
"This massive modernisation operation, designed to enable the port to receive large and new-generation vessels, comes barely months after the newly completed Port of Ngqura, outside Port Elizabeth, handled its first commercial vessel last October," wrote Wells.
Wells admitted that the two projects, costing more than R9bn in total, were among the first key projects to have been built by Transnet in a long time. "This means that, for the first time in decades, Transnet is poised to enable economic growth instead of constraining it," he said.
Through its R93bn (with R74bn already invested) capital investment programme over five years, said Wells, Transnet has created sufficient port, pipeline and rail freight capacity.
The company anticipates that the investments will assist "in the creation of several hundreds of thousands of jobs and the reduction of transport-related costs" of doing business in this country. He estimated the number of new jobs to be created at 550 000.
'Better service delivery in the offing'
Wells said Transnet had also forged ahead with investment in rolling stock, for instance the purchase and refurbishment of 300 locomotives. He said the roll-out of the investment programme has catapulted Transnet to" its rightful role in the economy - that of a catalyst for growth, driver of industrial innovation and stimulus to the economy".
"The good news is that there are indications of an improvement in service delivery levels, thus enabling improved service to our customers," said Wells.
"While progress has been made on productivity, Transnet is not operating at world class benchmark levels. This is why we have adopted the Quantum Leap strategy - the board-approved initiative to raise to benchmark standards of our productivity, safety and environmental compliance.
"Also, Transnet has built significant internal human resources capacity through transfer of skills as a result of working with leading international engineers and project managers with experience in large and complex infrastructure investment projects.
"This has also enabled us to achieve the shift towards investing in expanding capacity, instead of merely replacing or sustaining existing capacity, and in limiting the incidence of budget and schedule overruns."
- Fin24.com
