Portia Derby, CEO of Transnet SOC Ltd., and Nonkululeko Dlamini, CFO of Transnet, have resigned from their positions amidst mounting criticism and pressure over the company’s deteriorating operational and financial performance.
- Inefficiencies at Transnet, South Africa’s state ports and rail operator, have impacted the country’s exports, with an estimated loss of 150 billion rand ($8 billion) in exports last year. Issues such as vandalism, idle locomotives, and cable theft have led to a decline in rail volumes for iron ore and coal shipments.
- Mining companies, including Glencore Plc and Seriti Resources Holdings Ltd., have initiated talks to cut jobs due to the hindered ability to export coal caused by Transnet’s inefficiencies.
- South African Public Enterprises Minister Pravin Gordhan has pledged to implement a “radical plan” to address Transnet’s operational challenges. The government has revamped the board and appointed a new chairman in an effort to turn the company around.
- Derby, who became CEO in 2020, faced the task of rebuilding Transnet’s reputation following a period of state corruption. She implemented measures such as changing the company’s security strategy and proposing the use of diesel-powered trains to mitigate electricity issues.
- Michelle Phillips, the current Chief Executive of Transnet Pipelines, has been appointed as the acting Group CEO from November 1, while Hlengiwe Makhathini will serve as the interim Group CFO.
- Transnet is currently undertaking a recruitment process to find a permanent CEO. Derby and Dlamini will assist in the transition process before their departure.