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Concerns as Transnet’s underperforming freight rail poses economic risk

#¬†Transnet has warned that its underperforming freight rail division poses a risk to South Africa’s economy. In a briefing to Parliament, the state-owned entity revealed it cannot afford to settle its 130-billion-rand debt and seeks financial assistance. The board emphasised the urgency of turning around operational performance, echoing Finance Minister Godongwana’s concerns. Transnet’s debt burden, with annual interest costs of 13-billion-rand, is deemed unsustainable. Public Enterprises Minister Gordhan commits to improving performance and calls for cost-cutting measures following CEO Portia Derby and freight rail division CEO Siza Mzimela’s recent resignations.