Page 26 - Logistics News - Issue 01 - 2024.indd

O P I N ION

Private sector must take

control of failing SOEs

By Gavin Kelly, CEO of the Road Freight Association

The Road Freight Association (RFA) says the private sector must take control of failing state-owned
entities (SOEs) to save South Africa’s supply chain.

he Road Freight Association (RFA), as the largest and management thereof) and the various subsidiaries of
representative of road freight operators (companies) Transnet are the ones to blame.
Tin South Africa, is involved in the Road Transport (02)
and Security (07) Workstreams of the National Logistics The NLCC seeks to reverse decay, corruption and
Crisis Committee (NLCC). collapse. This will be a lengthy process and there is very little
trust or faith left in those who allowed the collapse under
The RFA is involved in the discussions relating to the their watch to now suddenly become the ‘saviours’.
challenges facing logistics in general, but specifically in those
discussions that affect road freight (ports, rail, intermodal Plans and projects are emanating from the NLCC, but the
and cargo specific operations of Transnet and its affiliated knowing concern that these are just talk (as in so many other
subdivisions). The current state of affairs in the ports and instances) remains in the minds of many. Transport, logistics,
rail network did not ‘suddenly’ happen in the last two weeks market-related activities, running efficient and reliable supply
– indeed, even Transnet is noting that specific issues at chains and ensuring good competition to ensure growth and
Richards Bay happened over two years ago. sustainability are the purview (ambit) of private business. The
private sector needs to be given far more control over the
The RFA is steadfast in its opinion that the deterioration failing and lethargic SOEs that are throttling the economy.
of our ports and rail has been a slow, continued process over
at least 10 years and the management of Transnet (and its Now that the various SOEs are feeling the pressure,
full subsidiaries) have been fully aware of the challenges and suddenly ‘short-term’ plans are being put into place to
continuously informed of these by both structures within their ‘ramp up operations’. Why wasn’t that done many years
respective organisations and the private sector. ago? A long road lies ahead of South Africa in terms of
bringing ports and rail infrastructure back to a position
Nothing was done to counter this – neither to reverse of efficiency. We need the private sector to drive and
nor hold the decline. The executives, management and control the nursing back to life of our vital supply chain
ministers who have led public enterprises (state assets infrastructure and nodal points. •

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