Gordhan appoints woman responsible for destroying Port Authority to head of Transnet

The new CFO appointment is also a dud, having been transferred from Eskom's maintenance division

Newsroom

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Newsroom

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March 2, 2024

Gordhan appoints woman responsible for destroying Port Authority to head of Transnet

After global pressure on the Port to meet basic standards of competency, Transnet has rotated its executive leadership. Michelle Phillips, who has been running our ports into the ground for the past 20 years, has been kicked upstairs to Transnet’s executive role to extend her unique lack of talent to the rest of the nation’s logistics infrastructure.

South Africas ports were ranked last year as being the worst in the world for efficiency and reliability by the World Bank.

Phillips will be joined by a new CFO, Nosipho Maphumulo, who has been shunted from her previous failures at Eskom Rotek Industries (the maintenance division) to yet another vital SOE.

Transnet has also taken steps to address recent allegations at Transnet National Ports Authority, with previous executives placed on precautionary suspension pending investigations. But given the character of recent appointments, accountability seems restricted to mid-level scapegoats.

Despite some progress, as news came in that the Port in Cape Town has returned to pre-crisis levels, issues with equipment and export schedules persist. the fruit industry has been hardest hit, as their cargo is perishable, and depends on reliable refrigeration. Stone fruit were most affected, with nectarines seeing a 6% drop to around 7.7 million cartons in 2022-23. Plums were down 13% to 13.6 million.

The fruit industry has extended a diplomatic welcome to the appointments, hoping for a speedy recovery, but also voiced their reservations, acknowledging that restoring the port of Cape Town to its former efficiency will be a long battle. While the situation has improved, it was not in time to prevent reputational damage to the South African fruit industry, according to Hortgro.

Transnet National Ports Authority (TNPA) now plans to upgrade infrastructure at the Port of Cape Town (PoCT), Mossel Bay, and Saldanha to support growing shipping demand.

Previous national port development plans were restricted to eastern ports, particularly Durban, under the bonanza known as Operation Vulindlela, to the neglect of the vital western port terminals.

TNPA's new plans include expanding the Cape Town Container Terminal and upgrading rail infrastructure, container stacks, and truck staging areas, with a capacity increase from one to 1.4 million TEU and an investment of approximately R1.775 billion.

The Port of Saldanha will see the extension of the multi-purpose terminal and the development of berth 205. TNPA is also reviewing plans for the Culemborg Intermodal Logistics Precinct Development in the PoCT.

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