South African President Cyril Ramaphosa directed executives of state-owned rail and port operator Transnet SOC Ltd. to come up with a plan to end the nation’s logistics crisis.
The embattled company has struggled with major inefficiencies that have led to traffic being redirected to ports outside South Africa and spawned stockpiles of commodities that can’t be railed.
Thungela Resources Ltd., South Africa’s largest exporter of thermal coal, said on Monday it expects sales to drop for a second year because of bottlenecks at Transnet. The state company has rejected an offer from Anglo American Plc to take over the running of its ore line, which is one of its most profitable routes, but battles to move sufficient volumes.
“Transnet must quickly embark on a clear path to take us out of this crisis and ensure that the operation of our railways and ports contributes to the growth of our economy,” Ramaphosa said.