Stephen Sadie, CEO, CGISA
The old saying “Transport is about getting from A to B” is the understatement of the year. Getting from A to B ain’t so easy anymore. We all engage with transport on a daily basis. Whether you go to work by car, taxi, bus, train or bicycle means you engage with the transport system on a daily basis. It’s great when it works but can be extremely frustrating when it doesn’t. When transport systems fall into disrepair, the whole economy suffers.
Transport governance starts with boards of directors. A quick search through the Department of Transport’s website shows a multiplicity of entities each with their own boards, which we will discuss further later on. As we all know, SOCs are required by law to have a company secretary. Ultimately the directors and company secretary are responsible for the governance of their particular entity.
We need to have a laser like focus on the individuals that are appointed as stewards to these very important entities. When a particular branch of transport fails, the consequences for the economy and society at large are dire. It is high time that we appoint the calibre of people who are genuine stewards of the transport ecosystem. There have been too many instances of the wrong people serving on public entity boards, who serve only their own interests and not those of the nation. While we cannot control how the global economy affects us, we can certainly control the calibre of people to serve on the boards of our transport ecosystem. We cannot afford anymore own goals when it comes to governance. The transport runway is too short.
The Department of Transport’s website breaks transport down into four main branches , which I will use to structure this article. The four main branches are:
- Rail
- Road
- Aviation
- Maritime
1. RAIL
We are all familiar with the long years of state capture at Transnet and the 1055 locomotives saga . It is common cause that Transnet has not been able move goods in and out of the country quickly enough. Because of the logjams on the rail system, companies have resorted to transporting their goods by truck. The heavy trucks damage the road system, which was not built to withstand the weight of trucks. The concentration of trucks on national motorways makes driving for light motor vehicles more hazardous. One of the key aspects of Operation Vulindlela is to focus on logistics and to try and remove the blockages. There has been some improvement at Transnet over the past few years. In particular, there have been moves to grant concessions to the private sector on the rail system which is looking positive.
We are familiar with the Prasa trains that were too tall for our railway lines. We remember the chief engineer who did not have the qualification he claimed to have. Ordinary working people have long relied on suburban trains to transport them to and from work every day given apartheid spatial geography. However the neglect and incompetence at Prasa has meant that the railway system has fallen into disrepair. A decision to remove security from railway stations during the Covid years meant that what was once a functioning system was decimated. Railway lines, sleepers and bricks and mortar railway stations were gutted.
Unfortunately Prasa, which was a serious site of state capture, has not really emerged successfully. There have been a number of changes at board and executive level. The chair of the board, Popo Molefe was hounded out by the Minister only to be returned by a Court ruling. Although there has been some progress at other SOCs after the heyday of corruption, the board at Prasa seems to be continually floundering.
The boards which are supposed to be looking after our rail system have not been up to standard.
2. ROAD
The Johannesburg etoll saga under Sanral turned out to be unworkable. As the majority of commuters resisted paying, the etolls eventually fell into disuse. The gantries currently serve no purpose. Sanral has built some wonderful roads through the expertise of engineering firms. However, there have been complaints about the bloated marketing expenses in recent years.
The Road Accident Fund is in complete disarray and has a massive backlog of unpaid claims. The claimants are ordinary working people who have had the misfortune of being involved in a motor vehicle accident. Provincial and Municipal road departments are responsible for maintaining our roads. However there are thousands of potholes on our roads, which deteriorate further with every downpour of rain.
The boards entrusted to look after our roads have not covered themselves in glory.
3. AVIATION
The South African Civil Aviation Authority has raised concerns with Air Traffic and Navigation Services (ATNS) since 2023. They have provided numerous extensions to give ATNS time to remediate matters. However ATNS was not able to take corrective action.
The ATNS is responsible for air traffic management and navigation services. Recently there have been major safety issues affecting air traffic control. In an unusual move in the public sector, Minister Creecy has placed the CEO on precautionary suspension following an investigation by a committee of aviation experts, which probed air traffic navigation services. There were a range of safety issues, which caused flight delays at a number of airports because of failure to maintain flight instrument procedures. There was also a major exodus of experienced staff.
The Airports Company South Africa was a well-known site of state capture for years. In November 2024, a proclamation was issued for the SIU to investigate allegations of maladministration and financial mismanagement regarding interest rate swap agreements, which were exposed in the Zondo Commission.
SAA has managed to keep some planes in the air after the disastrous reign of chair Dudu Myeni, which brought it to its knees. However, the recent appointment of the CEO of SAA was not without controversy, when the minister did not appoint the SAAboard’s preferred choice of CEO, who happened to be a foreigner with extensive experience in Kenya Airways.
The boards looking after our air transport have been found wanting.
4. MARITIME
The Ports Regulator South Africa is responsible of setting tariffs. South Africa’s ports are near the bottom of the table when it comes to loading and unloading goods for export and import. Minister Creecy has attempted to bring in the private sector. However the tender, which was granted to a major Philippines port operator, International Container Terminal Services, Inc (ICTSI) has been challenged in court by the Danish shipping giant, Maersk. This will lead to a long delay in introducing private participation into our ports.
The South African Maritime Safety Authority’s mandate is to ensuresafety of life and property at sea and to prevent and combat pollution from ships in the marine environment. This is no easy task given the rough seas on our coasts, which lead to numerous oil spills. The president has recently signed an amendment bill into law, which increases the fine for pollution in our waters. Our previous fines were often interpreted as a slap on the wrist.
The boards looking after our maritime interests did not cover themselves in glory.
It is time to rectify the governance lapses in our transport ecosystem. For a country to be successful it needs a functioning, well maintained transport system. And a functioning transport system needs a functioning governance system. We can’t afford anymore own goals. We can’t afford to drop our governance standards. We wish the new transport minister Creecy well in her efforts to improve our transport system whether it be by rail, road, air or sea.
