Transnet has underspent on maintenance of rail infrastructure by at least R27-billion over the past decade, according to an analysis by the African Rail Industry Association (Aria).
But Aria’s chief executive, Mesela Nhlapo, said underspending by the state logistics company could amount to double that figure considering the state of the country’s rail infrastructure.
She was speaking at a media roundtable on Thursday last week where she and other panellists spoke about what the cost of Transnet’s deterioration will cost the economy.
This is after Transnet workers embarked on a two-week strike last month, causing the company to declare another force majeure — the fourth in a year and a half — which is said to have cost the economy R1-billion a day.
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Sarah Smit
Sarah Smit is a general news reporter at the Mail & Guardian. She covers topics relating to labour, corruption and the law.
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