Parliament, Wednesday, 5 May 2021 – The Portfolio Committee on Public Enterprises concluded its two-day oversight visit at the Port of Cape Town in the Cape Town Harbour and Transnet Freight Rail and Transnet Engineering in Bellville.
Committee Chairperson, Mr Khaya Magaxa, said the intention of the oversight was to assess the impact of the infrastructure building programme and developmental initiatives implemented to advance the objectives of the government. “The committee needs to evaluate and learn if Transnet is responsive to the needs of the people,” said Mr Magaxa.
The committee was of the view that Transnet should act as a catalyst for the developmental needs of the people in creating employment opportunities and leading transformation in ensuring that women, the youth and people living with disabilities are given opportunities in the sector.
The committee said what is concerning with its engagement with the entity is Transnet’s operational efficiency, which is affected by the maintenance backlog at the Port of Cape Town, Transnet Freight and Transnet Engineering in Bellville. The committee said the entity needs to deal with the maintenance backlog and try to modernise some of its equipment so that Transnet can improve its efficiency. The maintenance of equipment is something that is budgeted for, not the cutting of the maintenance budget to save.
The committee indicated that one of its main interests is the impact that Transnet has on small, medium and micro enterprises (SMMEs). Committee Members questioned how the entity has created space for SMMEs. In its observation, the committee said small companies are competing with big businesses, the system does not allow SMMEs to thrive. The committee said SMMEs cannot only operate at the lower end of the margins.
The committee commended the entity on its corporate social investment (CSI) and the initiatives that are in place to assist communities in the areas of education, health and sport development.
Regarding the flagship healthcare train, Phelophepha, the committee welcomed the role that the train will play in assisting with the Covid-19 pandemic. Transnet said plans are underway for the train to be used as a vaccination site and that certain trains will be used to carry vaccines in different areas, especially in far-flung rural areas.
Concerning the school of excellence, the committee said it is important, but its focus is still on boys. The committee suggested and recommended that the make-up of the school of excellence should change to 50-50 where girls should be included.
On skills and training, the committee applauded the Transnet Academy which has the School of Rail, School of Engineering, School of Maritime, School of Pipeline and the School of Leadership. The committee was informed that at the core of Transnet training, is a special focus on youth development and the development of a pipeline through bursaries for both employees and fence line communities.
The committee has condemned non compliance by the Rovos Rail, the private passenger train that is still using long drop toilets in its trains and on the Transnet railway system. The committee said this is something that needs to be immediately addressed so that the rail company can upgrade its ablution facilities in its passenger trains.
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE PORTFOLIO COMMITTEE ON PUBLIC ENTERPRISES, MR KHAYA MAGAXA.
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