UPDATE 1-CEO of South Africa`s Transnet freight rail unit resigns

Published: 2023-10-05 tag: industry, materials and utilities

(Adds Transnet statement, paragraphs 6-7)

Oct 5 (Reuters) - The head of South Africa’s struggling Transnet freight rail unit Sizakele Mzimela on Thursday confirmed her resignation from the state-owned logistics firm, days after the group CEO also announced plans to step down.

“It’s a personal choice at the end of the day. When things change, you decide whether you fit in or don’t fit in. Whether you align or you don’t align,” Mzimela said after her presentation at a mining conference in Johannesburg.

Transnet’s management has been under pressure from miners, industry bodies and labour unions over the deteriorating performance of the freight rail utility.

The mining industry in particular has been hurt by Transnet’s underperformance, which has cost mineral exporters billions of rand in potential revenue.

Transnet’s freight rail service has struggled due to the shortage of locomotives and spares as well as cable theft and vandalism of its infrastructure.

In a statement, Transnet said Mzimela would leave her role at the end of this month after three years in charge of the group’s flagship unit.

Transnet has appointed Russels Baatjies as acting CEO for the freight rail division with effect from Nov. 1, while a process to recruit Mzimela’s permanent replacement is under way.

Mzimela’s resignation follows Friday’s announcement that Transnet group CEO Portia Derby would leave at the end of October. Another executive, CFO Nonkululeko Dlamini, also left last week to join South African telecoms company Telkom.

The Transnet group slumped to a 5.7 billion rand loss in the year ended March 31. (Reporting by Nelson Banya; Editing by Jan Harvey and Alison Williams)

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