The government is finally moving to fill the leadership vacuum at Transnet by appointing a board.
But before we start sending out congratulations, consider that the government’s lethargy has cost the economy dearly.
Only this week, Transnet said that the cost of the new multiproduct pipeline to transport fuel between Durban and Johannesburg had more than doubled to R23.4 billion from R9.5 billion in 2006.
This will increase the costs of fuel inland, the economic heartland of the country.
It means everything else will be more expensive because of higher transportation costs.
Users of Transnet’s various services are also complaining about the costs associated with the parastatal’s inefficiency.
Scrutiny will fall on the ANC-dominated board over the next five years.
The parastatal has a huge capital expenditure and all eyes will be focused on how it spends the money.
This puts pressure on ANC members to demonstrate that their actions will be above self-interest and in the interest of the country.
The board’s immediate challenge is to find the right person to steer the Transnet ship.