Michelle Phillips has been confirmed as the new Transnet CEO.
She has her work cut out for her — the state-owned company reported a R1.6bn loss in the six months ended September 30. It was handed a R47bn guarantee by the National Treasury in December to assist with its debt burden of R130bn. No further commitments were made to the company in finance minister Enoch Godongwana’s final budget for the sixth administration last month.
Nosipho Maphumulo, formerly of Eskom Rotek Industries, has been appointed Transnet CFO and Transnet veteran Russell Baatjies is now CEO of Transnet Freight Rail.
The hunt for a group COO, a new position, continues.
According to Transnet, filling this post will place the company on a firmer footing and help streamline and co-ordinate its various operations.
Business has warmly welcomed the appointments, with Business Leadership South Africa saying it was “elated” after the announcement, a sentiment echoed by Business Unity South Africa.
For Phillips, an arduous and crucial task lies ahead.
To get Transnet back on track, she will have to overcome many challenges, not least of which is the pushback from the erstwhile state capture gang still within Transnet and from ideologues in the governing party who are opposed to deeper private sector involvement in the logistics behemoth.
While there was excitement and hope after the appointment of Phillips’s predecessor, Portia Derby, it ended in tears — with dire consequences for South Africa and the economy. Here’s hoping the elation accompanying the new appointees is matched with genuine recovery at the company. It’s time to roll up those sleeves and get the country moving again.
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