8 August 2000
Chairperson Louise Tager,
Board Members,
MD Saki Macozoma,
MD designate Mafika Mkwanazi,
Transnet Management
I am delighted to extend my congratulations to all of you, including the managers, workers, and staff of Transnet for the tremendous strides you have all taken over the 1999/2000 financial year to produce these results. The turnaround in the Group is impressive to say the least, and as the results for the specific business units indicate, results from the adoption of specific turnaround strategies in those units that had given us the most headaches in the previous financial year. I believe that Spoornet in particular deserves mention. We are also pleased with the continued growth of SAA, and the progress that has been made in Fast Forward, Autonet, and Transtel. Clearly there is still some way to go in these areas, but in general terms I believe that we might have turned the corner. There are still struggling entities, but I believe that the renewed confidence in Transnet as a whole will augur well for these as well.
Foreign and domestic borrowings also indicate growing strength and the ripple effects of these developments I am sure will extend into the current financial year. Pension Fund developments continue apace, and again, the trend is positive. As we all know, certain developments recently will have a further positive impact on the question of the Fund and borrowings. We are waiting as well, for the passage through Parliament during the coming session beginning in September, of the necessary legislative amendments that will allow radical changes to the situation that will have equally radical effects on the Pension Fund situation. All I can say at this stage is: watch this space!
Chairman, when we met last year on a similar occasion, your financial results were produced against the backdrop of extensive publicity concerning the various restructuring options for Transnet that were then on the table. Frankly, the mood was somewhat gloomy then. The turnaround that we see in evidence today is the result of the efforts of government as shareholder and the combined efforts of management and labour to identify our collective interest in building Transnet for future development.
The introduction of significant changes in the core areas of your work have brought about these changes. In particular, I wish to mention the stirling work at Spoornet of Mr Zandile Jakavula and his revamped management. The acquisition of the SAir Group as an equity partner for SAA, as well as refinements to plans around Portnet and the other entities, have all given a boost to Transnet as a whole. What is especially pleasing is that collectively you have been able to produce these results in a fairly short period of time, reflecting the determination of management and labour alike to make Transnet work. I wish to express my appreciation for the way in which management and labour across the board have adopted an increasingly positive approach to restructuring as a whole.
Many challenges remain, and these include the adoption and implementation of a Social Plan designed to meet the specific demands of the Transnet environment, as well as the acceleration of other initiatives if we are to meet government's target of 2004. But I am confident that the quality of leadership and the capacity of the workforce will secure success.
On Thursday 10 August I will be releasing the Policy Framework on the Accelerated Agenda for the Restructuring of State Owned Enterprises. It contains specific and detailed references to changes in the Corporate Governance environment, progress in the regulatory field, as well as identifying much more clearly the processes that we will follow for the restructuring of these assets. Transnet, as one of the Big Four SOEs, is not immune from the Policy Framework and I look forward to the opportunity to make more announcements about Transnet's future at the appropriate time.
Let me conclude my comments by making a special reference to the changes that were recently announced in the management structures of Transnet. The current financial year will see the MD's contract come to an end and his place will be taken by the MD- designate, Mr Mafika Mkwanazi. Already the elements to ensure a smooth transition are being put in place to ensure that Transnet's work continues uninterrupted. We believe that open and transparent succession plans are an important element of building market confidence in your endeavours.
Chairperson, allow me finally to extend my thanks to the members of the Board and the whole of the management team for the way in which they are working to secure the best interests of the flagship of South Africa's transport sector. The evidence of your combined efforts is there for all to see.
Well done! And keep up the good work!