Transnet is to seek opportunities in fast-moving consumer-goods (FMCG) volumes in order to make up for a decline in Chinese demand for South African commodities such as coal and iron ore, according to Siyabonga Gama, who was officially confirmed as the Transnet CEO on Monday.
The South African state-owned rail, ports and pipelines operator is working on a refreshed operating model according to Gama, who addressed Transnet employees in a speech that was live tweeted.
“The Chinese are shifting from an investment-led economy to a consumer-driven economy, Gama said. “Demand for many commodities such as coal, steel, manganese, magnetite and iron ore is at its lowest level in decades. Transnet should also expand its manufacturing capabilities. We must look for new opportunities like FMCG volumes; fostering intimate understanding of our customers; building new capabilities; and using data we own to optimise our spend and drive efficiency. To achieve all these, we have designed and are in the process of consulting on a refreshed operating model for Transnet.”
