/ 23 April 2008

Transnet hit by powers cuts

Power cuts are hitting Transnet's service, its chief executive, Maria Ramos, announced in Johannesburg on Wednesday. The power cuts are a problem, particularly as far as the company's expansion projects are concerned, she said. ''We were affected and we are from time to time affected by the power issues -- like everybody else.''

Power cuts are hitting Transnet’s service, its chief executive, Maria Ramos, announced in Johannesburg on Wednesday.

The power cuts are a problem, particularly as far as the company’s expansion projects are concerned, she said.

”We were affected and we are from time to time affected by the power issues — like everybody else — and we are committed to dealing with the savings we have been asked to work with Eskom on.

”[South Africa] is not the only country in the world with these power problems, so we need to work together on this, but it dos impact on volumes and it does impact on the quality of service that we offer our clients.

”Of course we are factoring in the potential impact of all of this on volume growth, especially as it impacts on our key clients …”

She said Transnet is working closely with Eskom to minimise the impact of the power disruptions on its operations.

”We’ve had a very good reception from Eskom.”

Another challenge may come from the deepening subprime credit crisis, which is slowing economic growth globally.

”This is a very difficult global economic environment. The credit crisis arising from the subprime market has impacted on global growth,” said Ramos.

”South Africa is one economy in a very large world, so it does face the global slowdown and we are starting to see some of that impact on our own economy,” she said.

She added, though, that she remained optimistic that the country’s economy is still growing and that there are still good prospects for Transnet’s growth.

Ramos announced that Transnet has planned an R80-billion capital-expenditure programme over the next five years.

The bulk of that will continue to go into freight rail, at about R38-billion, followed by investments in the National Ports Authority, at R16-billion, new pipelines at R11,9-billion and port terminals at R9,6-billion.

While the new investments will be funded mainly through internal resources, about R37-billion will have to be funded in the market, the majority in the next three years, she said.

She said a range of options have been put in place to do this in the domestic market, but 35% to 40% of the capital programme is imported.

”I think we’re well on our way to transforming this company into a world-class transportation, infrastructure and logistics company …,” said Ramos, emphasising that its focus is on availability and reliability.

With just five months left to run on her contract, Ramos remained non-committal on her future plans.

She was also tight-lipped on whether she has chosen a successor, at pains to point out that she has put in place a team of talented people and that no one person made a company.

”I’ve got a contract and my style is to work until the last hour of the last day of whenever I’m going to be here until.

”Until then I don’t really think about it. I’ve got a big job to do and I will do it and nothing’s going to stand in the way of doing it.”

Asked bluntly whether she would stay with Transnet, she jokingly asked: ”I don’t know. Are you applying for the job? … Or do you want my CV? … I need an easy job next. I don’t know.”

Pressed to comment on whether there was any truth in reports speculating that she could move into the chief executive slot at Vodacom, Ramos again responded light-heartedly, saying: ”I’m sure I’m going to be linked to a lot of jobs.” — Sapa