Cape Town – The CEO of Transnet Freight Rail (TFR), Siza Mzimela, has reportedly resigned amidst mounting pressure from the Transnet board.
In a letter to staff on Thursday, she acknowledged the challenges faced during her three-year tenure and urged them not to lose hope in improving TFR’s performance, News24 reported.
Under Mzimela’s leadership, TFR’s performance has been disappointing, leading to a significant drop in rail export volumes, especially in the mining sector, the report said.
Two major coal producers even planned employee retrenchments due to this decline.
Business Day reported on Monday that business and government insiders had indicated on Sunday that it was highly anticipated that Mzimela would be the next prominent figure to exit Transnet.
This followed the sudden announcement of CEO Portia Derby and CFO Nonkululeko Dlamini’s departures on Friday.
Transnet CEO, Portia Derby and CFO Nonkululeko Dlamini are leaving the state-owned logistics company. #DStv403 pic.twitter.com/FP27tlRA7j
— eNCA (@eNCA) September 29, 2023
Rail export volumes fell from 213 million tons in 2018/2019 to 149 million tons in the last financial year. While external factors like the pandemic, rising crime, flood damage, and a cyber attack have affected Transnet, there have also been signs of mismanagement, including a lack of basic controls and outdated systems that caused the company to achieve only 25% of its targets in the past financial year.
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Compiled by Betha Madhomu
