Newly appointed Transnet boss Siyabonga Gama has his work cut out for him as he begins his three-month tenure as the transport giant’s acting chief executive.
In an interview with Business Report after his appointment was announced yesterday, Gama said his priorities would be to revisit Transnet’s export business amid falling commodity prices and a weakened currency.
“We have to relook at the way in which we do things at Transnet,” Gama said.
“We have to establish new markets that we can bring in so that we reduce our dependence on commodities and mining.”
Transnet planned to start transporting fast-moving consumer goods to offset a decline in commodity prices, Gama said.
Iron ore has weakened 28 percent since the beginning of the year.
Five divisions
Transnet consists of five divisions: national ports authority, port terminals, rail engineering, pipelines and freight rail.
The logistics parastatal is in the third year of a seven-year, more than R300 billion drive to increase rail and port capacity.
It is also the backbone of the country’s largest and most crucial part of freight logistics.
Prior to becoming acting Transnet boss, Gama was chief executive of Transnet Freight Rail. He joined Transnet in 1994.
Gama said while he was aware of the expectations around his rise, he believed that the Transnet executive team was experienced enough to handle the pressures.
“We have to put our focus on how best we can assist in the overall economic development of the country, and ensure that our bottom line is healthy so that we can implement our expansion programmes,” Gama said.
“We have to produce pipelines and ensure that we get new berths for our ports.“
A Transnet source who spoke to Business Report over the weekend and yesterday said there had been a positive reaction to Gama’s appointment.
“We are not at all worried with what is going to happen because we have been working with Siya (Gama) for over 20 years now,” the source said.
“We know him and he knows us very well so there shouldn’t be any problems going forward. We all like him as a person and we respect him as a leader.”
Gama, the longest serving member of the Transnet group executive committee, was confirmed as the new head of Transnet yesterday, beating two other contenders for the position after his predecessor, Brian Molefe, was last week seconded to Eskom to sort out the problems bedevilling the power utility.
Like Molefe, Gama enjoys the political support of President Jacob Zuma, his deputy Cyril Ramaphosa and Public Enterprises Minister Lynne Brown.
Brown told a media briefing last week that she had three names she was considering for the top Transnet position.
“We have the kind of people and skill to fill Brian Molefe’s secondment to Eskom,” Brown said. “So it should not be difficult to fill Molefe’s position, the only question we are considering is who among the three candidates would be best suited to take Transnet forward.”
As the company’s chief executive for its biggest division, Transnet Freight Rail, Gama turned it from yearly losses averaging R21 million in 2005 to R5.1 billion profit in the last financial year.
He is also behind the company’s most ambitious programme to build 232 locomotives in the next few months.
“My job is to galvanise the executive team, to make sure that we steer the ship, that we keep it on course and we continue our plans,” Gama said.
A member of the ANC’s powerful national executive committee said yesterday that Gama was the natural choice to succeed Molefe, as he had extensive knowledge of the company and all its divisions.
“It does not take nuclear science to see that he is competent and very good at it,” the member said.
“You don’t throw 20 years of experience away just like that. Transnet needs Siya.” – Additional reporting by Bloomberg
TIMELINE
1994 Gama joins Transnet. He serves in management ranks as port manager and the general manager of of one of the company’s divisions, Portnet.
2000 to 2004 Gama holds the position of chairman of the Port Management Association of Eastern & Southern African.
May 2005 Gama is appointed as Transnet Freight Rail chief executive.
September 2009 Gama is suspended on charges related mainly to two procurement contracts signed on his watch.
June 2010 Transnet sacks Gama. The dismissal, which was recommended by the independent chairman, followed a 200-page finding in which Gama was found guilty of all the charges of misconduct that were brought against him.
February 2011 Transnet announces that Gama had been reinstated following a review of his dismissal for certain breaches of governance.
April 20, 2015 Gama is appointed as Transnet’s acting chief executive following the secondment of the incumbent Brian Molefe to Eskom as its chief executive.
Directorships: Non-executive director of Italtile since 2004.
Source: Business Report research