You are currently viewing our desktop site, do you want to download our app instead?
Moneyweb Android App Moneyweb iOS App Moneyweb Mobile Web App
Join our mailing list to receive top business news every weekday morning.

Transnet boss Portia Derby doubts a strong 2021 recovery

Due to the ‘deep crash’ expected from Covid-19 globally this year.
Portia Derby, who took over as Group CEO of Transnet in February 2020. Image: Supplied

With 2020 being an economic “disaster” due to the Covid-19 pandemic, Transnet group CEO Portia Derby is not convinced 2021 will see a strong recovery in the global and South African economy unless a vaccine is discovered and administered on a mass scale worldwide.

Addressing a South African Transport Conference webinar on Wednesday, she remarked: “I’m not sure where the optimism for 2021 comes from … You can’t have such a deep crash in 2020 and suddenly think that things will be fine in 2021.”

Derby took over the hot seat as Group CEO of the ports, rail and pipelines state-owned entity in February, just weeks before the Covid-19 pandemic hit South Africa in March. She has kept a relatively low public profile since then, but the virus-linked lockdown and economic fallout is likely to have taken up most of her time.

Read: Transnet appoints ex-govt official as CEO

She did not go into detail about the impact of the pandemic on Transnet’s financials, but her comments on economic prospects clearly highlight her expectation that 2021 is going to be a tough year for it.

“I think normality [will] start to arise when we have a vaccine … And, not just having the vaccine, but that the vaccine is being distributed for most of the world and most of the population is vaccinated,” she said.

Pre-Covid challenges

Derby also noted that South Africa had been in an economic slump even before Covid-19 had hit.

Read:
SA extends its longest economic slump since 1945
We must move beyond the hallowed GDP

“The real challenge now is that the drivers of consumption, the US, has 30 million of their population unemployed … The dampening of [US] consumption has a direct impact on Asia, because Asia then can’t work as much to supply the US. If Asia is not working as much, then raw material suppliers like Africa [are] also affected, meaning our growth opportunity is dampened,” she said, highlighting the interconnectedness of the world economy.

She said commodity prices have been negatively impacted by the Covid-19 fallout, but there has been an uptick recently.

“Stats SA and the BER [Bureau for Economic Research] assume South Africa can crash [in 2020] by as much as 9.5% … Bear in mind that when we started 2020, the economy was only going to grow by around 0.9%, which is barely growth,” Derby stressed.

“We must remember that, as South Africa, we are really ploughing from a very far place … to try to reverse the -9% [decline in GDP expected this year] and come up to faster [future] growth,” she said.

“That’s the reason why I am not sure how we end up with 3.1% [forecast GDP growth in 2021], when without Covid-19 we were expecting 0.9% growth this year.

“One must be hopeful I suppose, but hope is never a strategy,” she added.

AUTHOR PROFILE

COMMENTS   11

Sort by:
  • Oldest first
  • Newest first
  • Top voted

You must be signed in to comment.

SIGN IN SIGN UP

When will the exTransnet board and management get prosecuted for corruption and state capture ???

Why are you reporting someone making statements of the blindingly obvious? If she was telling us how she plans to rebuild Transnet’s infrastructure it would be newsworthy.

“One must be hopeful I suppose, but hope is never a strategy…”

The opposite has also proven to be true… a true leader sells hope not despair. Becareful madam leader, we pin our faith on you give us hope.

And every ANC deoloyee thinks that strategy is a result.

Please tell that to the majority of readers on this platform!

Once you have worked for government you are unemployable……….period.

Except if you are Maria Ramos, then the bucks just keep rolling in, despite your past track record!!

It’s who she knows….T!

“One must be hopeful I suppose, but hope is never a strategy,” True, and talk & talk & talk without actual action also doesn’t bring results. TFR lost +1m ton bulk cargo to the WCape, however, the work that is available is not performed, whilst high tariff’s 30 to 40% higher than alternative transport options. Simultaneously, Transnet demands exorbitant tariff’s whilst providing a utter dismal service!? The strategy should be focused on REAL CUSTOMER SERVICE (not talk) & value for money with measurable performance levels linked to its receiving payment of such. The real issue of SOE & Parastatals is that its management & employees receive full pay & benefits whether they do their work or not!

Are you now buying locomotives that actually fit and using staff with real PhD’s? Doubt it. Another world class logistics / infrastructure legacy left to the incompetomaniacs

Where are our bullet trains ………

End of comments.

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR

Podcasts

NEWSLETTERS WEB APP SHOP PORTFOLIO TOOL TRENDING CPD HUB

Follow us:

Search Articles:Advanced Search
Click a Company: