Parliament, Wednesday, 29 March 2023 – The Standing Committee on Appropriations has successfully concluded its two-day oversight visit to Transnet’s Richards Bay Port Terminal where it assessed the state of refurbishments and improvements to freight and rail infrastructure.
The committee was in KwaZulu-Natal as part of oversight programme to appraise itself of constraints in the logistics sector caused by shifts from long-distance rail freight to roads. Transnet was allocated R2.9 billion to repair infrastructure damaged by floods and R2.94 billion to accelerate the repair and maintenance of long standing out of service locomotives.
The committee also noted concerns that the Auditor General said most audit queries regarding Transnet came from poor document management where source documents could not be found. Furthermore, the committee expressed concerns that Transnet has remained in the red by getting audit disclaimers for some time now. It also urged Transnet to engage institutions such as the Council for Scientific and Industrial Research for use of technology to protect its infrastructure.
The committee held deliberations with both management and union leaders representing workers. Representatives from labour told the committee that they were concerned with dilapidated equipment at the port and pleaded with the committee to ensure that equipment was purchased from reliable suppliers.
The Chairperson of the committee, Mr Sfiso Buthelezi, said If things go wrong at the State Owned Entities (SOEs), a lot of people's jobs are put at risk and that the SOEs have a role to play in the development of the economy.
Management and unions condemned acts of sabotage such as cable theft which contributed to the loss of revenue. They told the committee that floods negatively impacted productivity at the terminal as trucks could not have access to the port.
The management also told the committee that there was an increase in road congestion caused by trucks going to the port which impacted residents of Umhlathuze and N2 freeway users. The committee was of the view that the increase of trucks within the Richards Bay area was indicative of a failure to revive the freight rail transport system.
The committee said there still exists a huge gap where youth and women were still not absorbed by companies that do work with government and its entities.
The committee encouraged Transnet to utilise the Presidential Employment Stimulus in order to ensure young people were trained and equipped with necessary skills.
The committee welcomed the announced and planned interventions by government, especially shareholder Minister, Mr Pravin Gordhan, in resolving the stand-off between China Railway Rolling Stock Corporation and Transnet. This will ensure that spare parts and locomotives are available and that will result in more trains and less trucks to Richards Bay.
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE STANDING COMMITTEE ON APPROPRIATIONS, MR SFISO BUTHELEZI.
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