Godongwana: Transnet’s poor performance costing SA’s already struggling economy
Minister of Finance Enoch Godongwana singled out state-owned Transnet, saying the indebted entity’s rail performance threatened the entire economy.
Godongwana tabled the Medium-Term Budget Policy Statement (MTBPS) in Parliament on Wednesday afternoon, labelling the country’s ports as “inefficient and uncompetitive”.
According to Treasury documents, Transnet’s rail inefficiencies have cost over R400 billion.
Godongwana said Transnet’s poor performance was costing the country’s already struggling economy.
He said that Transnet’s collapse stemmed from operational failures, increased theft, and vandalism.
Godongwana said that reduced locomotive availability and the poor condition of infrastructure resulted from underinvestment.
“South Africa’s logistics system faces significant challenges, such as deteriorating rail and inefficient ports. Rail underperformance is estimated to have cost up to 5% of GDP in 2022, with losses in the region of R50 billion in the minerals sector alone.”
Godongwana said recognising the seriousness of the situation, the National Treasury was working closely with Transnet and the Department of Public Enterprises to ensure Transnet could meet its immediate debt obligations which stand at over R130 billion.
-EWN
In other news – Ex-The Queen actress Lorraine Moropa (Lerato) celebrates 27th birthday in style – Photos
The real age of a well-known South African actress, Lorraine Moropa, former The Queen star, was revealed on her birthday. Lorraine Moropa had been playing the role of Lerato Khoza on The Queen, and she was a young girl.
Judging from the role, she looked more like an innocent young girl in her late teens. This has made many fans imagine that Lorraine was also a teenager in real life, but that’s not it. Lorraine Moropa celebrated her 27th birthday on 31 October 2023, shocking many fans. Read More
