Transnet wants to hand over its key Durban to Joburg line – complete with 3,573 staff

RedViking

RedViking

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Transnet wants to outsource the running of its container corridor between Johannesburg and Durban for 20 years.

It doesn't have the money to make the business work, Transnet says, even though it believes trains can compete with trucks.

A partner will need at least R5.5 billion available to put into the likes of the City Deep container terminal – and will be taking on thousands of current Transnet employees.

That partner will also be taking on an average of 5 "security incidents" on the line per day.
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It can compete if it was a private company. But alas the cadre virus has destroyed it and most of the infrastructure has been stolen because of a weak ineffective government and police FARCE
These cANCer assclowns are such a joke and they cannot see it.
 
Matters to be discussed are due to include a potential profit sharing arrangement, and just how everything will be handed back to Transnet at the end of a 20-year lease.
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Yes, because that makes total business sense.

This isn't difficult, lease the line to a private company to manage. Then if they need rolling stock to get started, they can create separate contracts for that equipment as well. And while they are at it, lease out all their container ports as well. Doesn't matter if the private company turns a profit or not, they have to pay the lease.

Then do this for other lines as well.
Eventually, they will just be a property and equipment rental company. And will be stupidly profitable for the state.
 
Hold up.. so an entity will need to pump R5.5bn into City Deep, deal with 5 security incidents per day and get gifted 3500 odd staff, but still have to pay Transnet a profit share and hand it back after 20 years?

I think Transnet may be farting against thunder... I very much doubt any private entity will be interested in that sort of deal.
 
konfab said:
Yes, because that makes total business sense.
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Isn't that similar to the N4 concession to private companies? They're operating and improving the road for a certain period.
konfab said:
This isn't difficult, lease the line to a private company to manage. Then if they need rolling stock to get started, they can create separate contracts for that equipment as well. And while they are at it, lease out all their container ports as well. Doesn't matter if the private company turns a profit or not, they have to pay the lease.

Then do this for other lines as well.
Eventually, they will just be a property and equipment rental company. And will be stupidly profitable for the state.
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ToxicBunny said:
Hold up.. so an entity will need to pump R5.5bn into City Deep, deal with 5 security incidents per day and get gifted 3500 odd staff, but still have to pay Transnet a profit share and hand it back after 20 years?

I think Transnet may be farting against thunder... I very much doubt any private entity will be interested in that sort of deal.
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Guptas and the likes will "invest"
 
ForceFate said:
Isn't that similar to the N4 concession to private companies? They're operating and improving the road for a certain period.
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But the N4 concessionaire isn't responsible for the cargo that traverses the road.
So there can be as many security incidents on the N4 route as they want, the concessionaire is not going to take a financial hit for them directly.
 
ForceFate said:
Isn't that similar to the N4 concession to private companies? They're operating and improving the road for a certain period.
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There shouldn't be any profit sharing with these types of agreements. That just opens it up for corruption.
 
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