RFA questions if Transnet will make bailout count
The Road Freight Association says while Transnet’s bailout is a step in the right direction, it has concerns.
Transnet is immediately getting R47 billion from the National Treasury.
It was announced earlier on Friday to help get the troubled logistics company back on track.
The state-owned entity has been struggling to stay afloat as it deals with a costly backlog of container ships at various ports, including Durban.
Transnet has also suspended coal trucks coming into the Port of Richards Bay due to the congestion the heavy-duty vehicles are causing on the city’s roads.
ALSO READ: Treasury grants Transnet R47 billion bailout
Treasury says the cash injection will also help with Transnet’s recovery plan.
Road Freight Association CEO Gavin Kelly wonders if the latest bailout will be fruitful.
"We know that Transnet has received allocations and presumably more bailouts before, and the question will still remain whether the management operational foresight and the control that was lacking for so many years, will now suddenly appear and come into play."
"It certainly hasn't done so before. Are we going to see what happened with SAA where countless bailouts occurred and there was no sight of the desired result?"
MORE ON ECR
