Transnet CEO Outlines R4G Turnaround With Procurement Reforms And 4.7% Freight Volume Recovery Forecast

Source: Supplied | Transnet Group Chief Executive Michelle Phillips at 2026 Sapics Conference

Delivering the opening keynote presentation at the 48th annual SAPICS Conference in Cape Town to over 500 supply chain professionals, Phillips stated that the organisation’s turnaround plan is actively addressing severe rail bottlenecks and port inefficiencies.

The "Reinvent for Growth" (R4G) programme—structured across three core pillars of "Fix and Optimise", "Transform", and "Grow"—is focused on volume recovery, equipment renewal, institutional redesign, and scaling up private sector partnerships. According to Phillips, Transnet Freight Rail volumes are forecast to increase by approximately 4.7% between FY26/27 and FY27/28.

Procurement operational turnaround

A central driver of the financial recovery involves structural procurement reforms. Transnet is transitioning away from transactional workflows toward a centre-led operating model, digital procurement transformation, and stricter supply chain management governance.

Phillips detailed the measurable commercial outcomes achieved through these process redesigns:

• A 50% reduction in irregular expenditure.• A 75% turnaround reduction in procurement processing.• A 78% cut in cycle times via operational process redesign.• More than 10% in direct cost savings secured through strategic sourcing.• Realised value and overall savings exceeding R2bn.

Private sector partnerships

The utility noted that freight rail volumes are stabilising after consecutive years of structural decline, while container volumes are improving across key marine terminals due to accelerated port equipment interventions.

Phillips emphasised that modernising internal supply chain frameworks is critical to supporting broader macroeconomic stabilisation across South Africa.

“Transnet’s recovery is South Africa’s growth. The strategy is working, the recovery is real, and the future is sustainable.”

The annual Sapics Conference, which runs until 22 July 2026, also marks the 60th anniversary of the supply chain industry body, operating this year under the theme Legacy to Leadership: 60 Years of Connection, Collaboration and Transformation.