Transnet restructuring not move to privatise - Ramaphosa
President Cyril Ramaphosa has denied that the restructuring of operations at Transnet is a move to privatise the state-owned entity.
Ramaphosa transferred Transnet from the now-defunct Department of Public Enterprises to the Transport Department earlier this week.
In 2023, the government handed Transnet an R47 billion lifeline, which it said would help the rail and ports firm meet its immediate debt obligations.
Transnet has struggled to provide adequate freight rail and port services in South Africa due to equipment shortages and maintenance backlogs after years of under-investment.
Ramaphosa answered questions in the National Assembly on Thursday.
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"Transnet is undergoing a fundamental restructuring process to separate infrastructure from operations," the president told MPs.
"This is through the establishment of the Rail Infrastructure Manager and the National Ports Authority as independent subsidiaries of Transnet.
"Private sector participation is being introduced. At the same time, we made it clear that the port and rail infrastructure will remain in public ownership, even as competition is introduced in the operations.
"We are therefore very clear that this is not a process of privatisation.”
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