The Citizen reports that the abrupt resignation of Transnet CEO Portia Derby may pave the way for a comprehensive strategy to revitalise the floundering state-owned utility.

After two turbulent years marked by declining performance and missed opportunities in a burgeoning commodities market, Derby stepped down on Friday, giving in to mounting pressure from mining and industry sectors. The Sunday Times reports that Derby’s controversial decision to offer Voluntary Severance Packages (VSPs) backfired spectacularly. While the move shaved R3.2 billion from Transnet’s wage bill, it also led to the departure of 450 invaluable employees with scarce skills. The company lost engineers, financial managers, project management specialists and up to 200 train drivers, as well as crane and lift operators and artisans. All these employees had scarce skills and they were either replaced by inexperienced people or not at all. “Transnet’s permanent employee headcount has reduced by 7.2% to 46,086 as at March 31 2022 (down from 49,642 in 2021) due to the combination of the VSP process, natural attrition, and retirements,” the company reported last year. According to an anonymous senior government leader, plans are underway to rehire some of the experienced personnel who were let go. “They let go of the most experienced, honest people that knew rail. It was in their blood. We are going to get some of this lost skill back,” the source commented.

• Read the full original of the report in the above regard by Cheryl Kahla at The Citizen
• Read the original Sunday Times report at Sunday Times (subscriber access only)

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