Siza Mzimela, the CEO of Transnet Freight Rail, has stepped down from her position, a move confirmed by high-ranking sources within the state-owned enterprise. Mzimela’s departure comes amid what some insiders suggest is a seemingly unwinnable battle with the board.
Upon taking the helm at Transnet Freight Rail, Mzimela inherited a division facing numerous challenges. It was an enterprise deeply marred by inefficiencies, battling escalating theft, vandalism of infrastructure, and a pressing deficiency of operational locomotives. These corridors, crucial for transporting South Africa’s imports and exports, had their efficiency threatened, putting sectors like agriculture, retail, mining, and automotive at risk.
However, during Mzimela’s tenure, several noteworthy accomplishments were realized, which she highlighted in her farewell letter to the staff. Among these achievements were the introduction of borderless trains in the North East Corridor, the timely completion of the Mamathwane Crossing Loop in the Northern Cape, prompt repair of flood damage in KwaZulu-Natal, and the inclusion of new players in the manganese sector. Moreover, Mzimela prioritized restructuring for efficiency, increased female representation at the executive level, improved regional collaboration, tariff rebasing for growth, and garnered international acclaim for Transnet’s engineers.
The backdrop of her leadership was set against a broader effort to purge corruption and stabilize Transnet, a drive that began in earnest in 2020 with the appointments of Mzimela, along with CEO Portia Derby and CFO Nonkululeko Dlamini. Despite these attempts at transformation, the company’s financial health has seen further decline, eliciting calls for executive change from several business associations, including the Durban Chamber of Commerce, the Minerals Council, and various labor unions.
Underlying these concerns is Transnet’s alarming R5.7 billion loss in the 2022/23 fiscal year, a downturn significantly influenced by Transnet Freight Rail’s underperformance. The rail volumes witnessed a 13.6% dip, sliding from 173-million tonnes in 2021/22 to a mere 149-million tonnes in 2022/23.
As South Africa prepares for the challenges ahead, the eyes of many will be on Transnet Freight Rail, monitoring how it adapts and evolves in the post-Mzimela era.