Transnet’s decline tears at tight municipal budgets

The wear and tear at Transnet has been thrown into sharp relief in recent weeks, with many pointing out just how much the state logistics company has cost the national economy.

Commentary on Transnet’s economic cost has, in the main, focused on how the entity has constrained exports, preventing South Africa from fully cashing in on the commodity boom. The Minerals Council of South Africa estimates that the country lost out on R50-billion in export revenue because of Transnet’s inadequate rail and ports capacity.