Transnet fuel deal empowers

TRANSNET nailed its empowerment colours firmly to its mast this week with the announcement of a massive fuel-supply deal that will benefit black- and womanowned companies.

The R15.5-billion deal is for nine companies to supply fuel to Transnet for its vehicles, diesel locomotives and harbour craft for the next five years.

Public Enterprises Minister Malusi Gigaba said the deal — Transnet’s single biggest yet contract for goods and services — demonstrated government’s commitment to broadening black economic empowerment.

Of the nine operators, eight are 100% black-owned and five are more than 80% women-owned.

Gigaba exhorted Transnet to ramp up economic transformation.

“This is a significant step but not sufficient,” he said.

Gigaba said Transnet’s economic transformation projects should not end with the awarding of contracts, but that the company should help suppliers transform their supply chains “so they don’t keep the laager behind them”.

The companies will supply Transnet with “home-based” fuel in tanks and pumps at its depots, fuel the rail operator’s 737 diesel locomotives and provide marine diesel for the port operator’s tugs, pilot boats and dredgers.

Transnet said the new suppliers were selected after an exhaustive public bidding process that assessed bidders on price, supplier development, technical ability and their empowerment credentials. The ability to actually deliver fuel to meet Transnet’s requirements was a crucial aspect, the company said.

Fuel wholesaler Women of Africa Group, was selected as one of the nine new suppliers.

“For women in the sector it’s extremely challenging — this industry is still rife with [sexism],” said chief executive Pria Hassan.

“It’s been a struggle but one that was worth fighting for.”

Hassan, whose company has operated in the fuel sector since 2007, said the logistics would be outsourced to selected service providers.

“We want to focus on procurement and supply, and develop more women in the sector,” she said.

Hassan said teething problems were inevitable.

“Fortunately for us, we’re old in the sector and we’re not ignorant of the challenges or how to deal with them. It’s a whole new culture and team.”