All eyes on 'depleted' Spoornet
17/01/2005 21:37  - (SA)  

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Johannesburg - After the departure of Dolly Mokgatle as chief executive officer (CEO) of rail utility Spoornet, Spoornet's customers are looking forward to a new person filling the CEO's position, someone who will turn the company around and ensure its rail service is efficient and effective.

Last Tuesday, Transnet announced that Mokgatle had resigned, with CEO of the national ports authority Siyabonga Gama, taking up the position of acting CEO of Spoornet.

Chamber of Mines spokesperson Lesego Mncwango said: "The chamber is encouraged by the appointment of Gama as he was at the national ports authority and is aware of Spoornet's inefficiencies.

"We hope the person who fills the job of Spoornet CEO permanently is a senior one, who is appointed soon rather than later.

Transnet head of group communications Tami Didiza said: "The appointment of a new Spoornet CEO is a matter of urgency."

Three main freight divisions

Regarding where the government will find the person to fill the role of CEO of Spoornet, Didiza said it was too early to say.

Spoornet operates three major freight divisions: its general freight business, the Orex iron-ore line between the Northern Cape and the port of Saldanha and coal link line between the Mpumalanga coal fields and the Richards Bay Coal Terminal (RBCT).

In the long-term, a successful turnaround of Spoornet would be positive for the South African economy, as the utility's performance is increasing the economy's operational cost and inefficiencies are slowing down the ability of the economy to expand.

A Johannesburg economist said: "Because of Spoornet's inefficiency, it is taking time to get goods to and from the harbours. Spoornet is a huge bottleneck for the economy."

Any replacement CEO will face an uphill battle and it will take a while before Spoornet recovers, said Spoornet's customers.

The new Spoornet CEO will have to replace some senior management positions after resignations, re-establish the senior management structure and try to fill the skills gap at the rail group.

A market player said: "The fact that something is being done is a glimmer of hope."

Businesses turning to road transport

Over a period of years, turn-around times have suffered at Spoornet, there has been an increasing lack of knowledge about rail at the top management level, the utility's depth of management and skills has been thinned and, as a result, more business concerns are turning to road transport rather than rail.

Under Mokgatle, Spoornet was aiming to invest R14bn in five years in upgrading ageing assets, attracting and retaining skilled staff and improving customer service.

However, the loss of another CEO, after the departure of Zandile Jakavula, could mean the rail utility's development plans will not go ahead within the five-year time frame.