In the midst of the recent Transnet strike, something remarkable happened. A cluster of affected businesses and key parts of government put their heads together to come up with solutions to minimise disruptions. This was done with Transnet’s buy-in. 

It started with leaders from affected sectors holding a quick, virtual meeting facilitated by the Public Private Growth Initiative. That meeting was followed by a call to Public Enterprises Minister Pravin Gordhan, alerting him to sectoral issues and concerns. 

Gordhan promptly convened a late meeting on Sunday, 9 October, which became a regular fixture between sectors of business and the economic cluster. This “forum” played a pivotal role in creating line-of-sight for business – and a layer of certainty in light of the volatility brought on by the industrial action. 

Transnet Group CEO Portia Derby led the company’s input while Agriculture Minister Thoko Didiza and Labour Minister Thulas Nxesi were also present regularly in these calls. 

The meetings between segments of the economic cluster and Transnet management enabled the impacted sectors to work closely with the appropriate people at the state freight and rail company. 

That created space for business to unblock constraints and made it possible for government to gain on-the-ground insights about the upstream and downstream consequences of the strike. 

In the days leading up to the strike, sectors reliant on Transnet’s services looked for ways to get real-time information on the movement of products and alternative means to move goods, as well as on the status of the wage negotiations. 

Many were concerned about the plight of workers, acknowledging their need for fair wages and commending their loyalty and dedication during the pandemic, last year’s riots and the KZN floods. 

Sector leaders were particularly keen to find out whether Transnet had contingency arrangements; what the company was doing to avert the strike action, and whether the state fully understood the magnitude of a total shutdown of the country’s ports and rail system. 

The impromptu forum convened by Gordhan and his colleagues on the economic cluster provided a platform where these issues were addressed.  

As negotiations between Transnet and labour played out at the Commission for Conciliation, Mediation and Arbitration, and uncertainty loomed about which way the wage talks would go, business and economic cluster ministers held their meetings.  

Collectively, we looked at the impact on each port, the rail system and incidents of violence against personnel and infrastructure. 

Overall, we had eight late meetings. The state representatives were able to demonstrate to business what they were doing to bring the strike to an end.  

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What was unusual, and quite remarkable, about those eight meetings was the high level of coordination and cooperation between business and government. Sectors gained an appreciation of what was being done to minimise the impact of the strike, as well as efforts to end it. 

The forum eliminated the temptation, as legitimate as it was, to point fingers. This also helped focus efforts on mitigation and resolution. 

At the other end, sector leaders, including those in agriculture, were able to share information about blueberry and citrus exports stranded at ports. 

Government was notified that hazardous chemicals were stranded on one of the rail lines, posing a safety risk. These chemicals were critical inputs for the manufacture of fertilisers and mining explosives. 

In addition, government was advised that about only a quarter of R1-billion worth of coal exports was able to move through the ports. At one stage, it seemed as if the transport of aviation fuel would also be compromised and a solution was sought. 

As well as the economic concerns, the strike compromised many individuals’ safety, and there were also worries about damage to infrastructure and goods. Business provided additional security resources at strategic hotspots to augment the police’s efforts. 

Despite heightened tensions all round, all parties reaffirmed their respect for the right to strike, but also the importance of peaceful strike action and compliance with picketing rules. 

The events of the past two weeks underscore the importance of well-functioning state-owned enterprises. The strike, although fortunately short-lived, demonstrated the fragility of business because of its reliance on state infrastructure – which is constrained and operating considerably below full capacity. 

But even if our ports and rail systems were operating at full capacity, our transport network is insufficient for our needs. Moreover, what happens at our ports and the rail network has a knock-on effect on the wider economy. 

That necessitates more collaboration and cooperation between the public and private sector. 

More importantly, greater effort is required to build resilient and robust ports and rail systems. Our ports and rail systems are inextricably tied to the economy. The economy’s vulnerability and exposure to limited transport and port corridors has been highlighted. 

Although not without its consequences, the strike has opened an effective communication channel between business and government. It has enabled parties to respond more effectively under uncertain conditions and has carved out a space for affected parties to exchange ideas, carve out solutions and assist each other. 

There is now fertile ground to widen the conversation beyond the strike to meaningful partnering between the private and public sector regarding the state of our ports and rail networks for the greater good of the economy and the country at large. BM/DM