Mail & Guardian Reporter
PX, Transnet’s loss-making container shipment and consignment distribution unit, is on the road to recovery after the unions endorsed a restructuring plan, says Thabang Motsohi, deputy chief executive.
The strategy, which involves closing 34 mini-depots, will see the company break even in the1998 financial year – after making a loss of R433-million this year and a projected loss of R295-million next.
Motsohi said the proposal to cut costs and expand market share from 18% to 30% with 15 months had been endorsed by PX’s five unions – the South African Railway and Harbours Workers Union, Technical Workers’ Union, Salstaff Employees Union of South Africa, Black Trade Union of Transnet and the Transnet Allied Trade Union.
PX delivers 22-million parcels and generates an annual turnover of R550-million. But, says Motsohi, the company would now concentrate on a competitive, fast and guaranteed delivery service, as well as an exclusive service called PX Africa, to give it a clearer focus.
Privatisation was not yet on the agenda, says Motsohi. “The main purpose is to unlock the value in PX and optimise it.”
Motsohi does admit that rationalisation could affect the workforce. Talks with the unions to minimise the effect of job losses will be concluded next month. The marginal depots employ about 560 of PX’s 7 600 staff, but the closure would be offset by the opening of more agencies.