Today's Labour News

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transnetlogo thumb100 Fin24 reports that Transnet Freight Rail (TFR) has announced its official split into an infrastructure management company and an operations company, paving the way for third-party participation in SA's national rail network.

In an update circulated to staff on Tuesday, Group CEO Michelle Phillips said 1 October marked the official start of the vertical separation of TFR into two operating divisions, namely, Transnet Infrastructure Manager (TRIM) and Transnet Freight Rail (TFR) as the operations company. Durban Port manager Moshe Motlohi will act as TRIM CEO while the recruitment process for a permanent appointment gets under way. TFR, led by Russel Baatjies, will focus on Transnet's operations business, moving volumes on the network. "Along with this milestone, TRIM will soon invite interested train-operating companies to apply for rail access and slots will be allocated based on availability in various corridors," Phillips indicated in the update. But Transnet's majority union, the United National Transport Union (UNTU), said the move was "unexpected and premature" and that it was left "blindsided", particularly after a meeting with Transnet management last week, when several key questions about the rail reform remained unanswered. The unbundling of TFR by October is one of the conditions tied to the R47-billion guarantee facility from the National Treasury. But, the funding model is a key concern for UNTU as neither Transnet nor national government has allocated sufficient funds to upgrade the dilapidated railway infrastructure, including critical signalling issues that have long hindered its ability to meet its performance and efficiency targets. Security issues on the line, such as cable theft, also remain a major challenge. A further concern for UNTU is the job security of employees who will be transferred to the infrastructure manager.

  • Read the full original of the report in the above regard by Lisa Steyn at Fin24


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