DPE presentation 01 Nov 2023 pride · unity · trust

Transcript:DPE presentation 01 Nov 2023 pride · unity · trust:
DPE presentation 01 Nov 2023 pride · unity · trust phambili TRANSNET OPERATIONAL CHALLENGES & STAFF MORALE General PROCUREMENT PROCESS The procurement process is cumbersome and time-consuming impacting on the ability to source spares and thus impacting on the ability of TE to service / maintain / fix the fleet which directly impacts the availability of the fleet and the poor efficiencies FRAUD / CORRUPTION Enough said…. pride · unity · trust phambili General DEBT BURDEN Although a lot of the blame for Transnet’s current status can be attributed to the legacy of “State Capture”, the consistent financing of debt by incurring more debt is negatively impacting on the Transnet cash flow and money available to finance the operational costs and required capital investment to turn the entity around Transnet allegedly requested R26Bn for infrastructure maintenance / investment, but only a fraction was approved / provided Transnet is paying R12Bn in interest per year, with a debt burden of R130Bn of which R90Bn is due within the next 5 years and R33Bn is due within year 5 alone, they will never get out of the hole unless Government assist in getting them out of the hole The alternative is to refinance debt again which will just exacerbate the situation! pride · unity · trust phambili TFR THEFT / VANDALISM / SABOTAGE Theft, this has been impacting TFR very negatively and making it impossible to run an efficiently scheduled railway. Theft is not only happening on the mainlines with regard to overhead wires but criminals are also starting to invade the loco and depots where wagon and locomotive are being stored. Recently in one of the depots in Pretoria Pyramid South a security Guard were shot at by these criminals / criminal syndicates. Private security is deployed but it is also very expensive which puts even more strain on the TFR finances. There has been 5500 security related incidents during the last financial year, very few prosecutions has been finalised and most of these criminals are walking free TFR will never be able to financially manage to secure their assets without the intervention of Government. Untu has on numerous occasions proposed that these national asset should be protected by the SANDF. pride · unity · trust phambili TFR AVAILABILITY OF LOCOS Locomotives spares has a major effect on the operational efficiencies of TFR. The 1064 project was to replace the locomotive