Transnet Chief Executive Addresses Hundreds of Supply Chain Professionals, Outlines Recovery Strategy And R129 Billion Planned Spend
Transnet will spend more than R129 billion over the next five years to restore the SOE’s sustainability and credibility, Group Chief Executive Michelle Phillips said in her opening keynote presentation at the SAPICS Conference in Cape Town today.
More than 500 supply chain professionals from across Africa and around the world have convened for the annual event that is hosted by supply chain industry body SAPICS and enables supply chain professionals to learn, share knowledge and network. Now in its 48th year, the SAPICS Conference is Africa’s leading event for the profession. In her presentation, Phillips told South African supply chain managers impacted by Transnet's challenges - including severe rail bottlenecks and port inefficiencies - that the organisation’s turnaround plan is working and already delivering tangible results.
The “Reinvent for Growth” (R4G) is taking hold, improving financials and operational discipline, enabling equipment renewal and private sector partnerships that are restoring confidence in Transnet, Phillips said. R4G has been developed to recover volumes, drive institutional reform and realignment through organisation redesign and improve Transnet’s commercial focus. She outlined the three pillars of the R4G programme: “Fix and Optimise”, “Transform” and “Grow” and noted that these are bearing fruit. Freight rail volumes are stabilising after years of decline. Container volumes are improving across key terminals, reflecting early operational stability. Private sector partnerships are gaining traction. Accelerated port equipment interventions are aimed at improving reliability and lifting overall efficiency.
Reforms and the R4G will support continued volume recovery over the next five years while enabling the market repositioning of Transnet. Transnet Freight Rail volumes are forecast to increase by approximately 4.7% between FY26/27 and FY27/28, Phillips told SAPICS attendees.
She discussed procurement reform and outlined how the SOE is addressing long-standing structural inefficiencies and repositioning procurement as a strategic enabler. To build a modern, strategic procurement function, Transnet is focusing on key procurement reforms, namely: a centre-led procurement operating model, digital procurement transformation, supply chain management governance, supplier relationship management and inclusive growth. Phillips said that measurable outcomes already achieved include a 50% reduction in irregular expenditure, a 75% reduction in procurement turnaround, more than 10% in cost savings via strategic sourcing, and realised value and savings of R2 billion.
Procurement has been transformed from a transactional support function into a strategic value engine that supports business recovery, operational excellence, and sustainable growth, she stated.
Transnet’s recovery is South Africa’s growth, Phillips stressed, and assured SAPICS Conference attendees that the “strategy is working, the recovery is real and the future is sustainable”.
The 2026 SAPICS Conference runs until 22 July 2026. This year's event celebrates the 60th anniversary of supply chain industry body SAPICS. This milestone is reflected in the Conference theme "Legacy to Leadership: 60 Years of Connection, Collaboration and Transformation". The conference programme has brought together local and international speakers, industry experts, thought leaders and supply chain practitioners who are sharing practical insights into the opportunities and challenges shaping modern supply chains. “As SAPICS celebrates six decades of advancing the supply chain profession in South Africa and across the continent, this year’s landmark event not only reflects on the past but is helping to shape the future of supply chain excellence,” the organisation says.
For more information:
Email: info@sapics.org.za
ABOUT SAPICS: http://www.sapics.org
Since 1966, SAPICS has worked to elevate, educate and empower the community of supply chain professionals in South Africa and across the continent. This is done via membership, events, the annual conference and education courses and workshops through Authorised Education Providers and others.
SAPICS is registered in South Africa as a not-for-profit company. Its mandate is to ensure that any profits made are used towards the continual development and overall benefit of individuals and organisations in the supply chain management profession.
The annual SAPICS Conference is the leading event in Africa for supply chain professionals and is now in its 48th year. The 2026 SAPICS Conference takes place in Cape Town from 19 to 22 July 2026.