S.Africa's Transnet appoints Phillips as group CEO

South Africa's state-owned logistics firm Transnet has appointed Michelle Phillips as chief executive officer, the public enterprises minister said on Wednesday. The South African government, Transnet's sole shareholder, has handed Transnet a $2.5 billion lifeline to help the state-owned firm meet its immediate debt obligations. Phillips is expected to spearhead Transnet's recovery plan to restore freight volumes, end port backlogs and return the company to profitability over a period of 18 months.

South Africa's state-owned logistics firm Transnet has appointed Michelle Phillips as chief executive officer, the public enterprises minister said on Wednesday. Phillips has been acting CEO of the freight rail, ports and pipelines utility since November after Portia Derby stepped down. Phillips previously headed Transnet's pipeline subsidiary.

Public Enterprises Minister Pravin Gordhan also named Nosipho Maphumulo as Transnet's group chief financial officer. Transnet reported a 1.6 billion rand ($83.01 million) loss in the six months to Sept. 30 on the back of declining rail, port and pipeline volumes. It is struggling to provide adequate services due to equipment shortages and maintenance backlogs after years of under-investment.

The logistics firm's rail constraints have cost mineral exporters billions of rand in potential export revenue. The South African government, Transnet's sole shareholder, has handed Transnet a $2.5 billion lifeline to help the state-owned firm meet its immediate debt obligations.

Phillips is expected to spearhead Transnet's recovery plan to restore freight volumes, end port backlogs and return the company to profitability over a period of 18 months. ($1 = 19.2750 rand)

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