Describing the state in which he found Transnet when he took on the role as chair, Sangqu said the new leadership stepped into one of the most daunting calls in corporate South Africa. He described it by way of a clinical analogy – that of a patient in hospital, surrounded by monitors, each flashing warning signs. Every key indicator – performance, relationships, operational metrics – was trending in the wrong direction. Nothing was catastrophically broken, but everything was deteriorating and nothing was functioning as it should. In addition, the organisation was always making headlines.
“The instinct, in such moments, might be to act swiftly. Instead, the approach shifted and we chose to pause, listen and engage.”
He said as a new team, they spent a lot of time on the ground, visiting operations, speaking to employees, customers, and stakeholders, and asking simple, direct questions. What emerged was not a lack of insight as the organisation already held the answers; the challenge was that these answers were fragmented.
Rebuilding trust
What has stood out most in Transnet’s turnaround journey, according to Sangqu, was the goodwill of its customers. He recalled an example of a CEO of one of the largest coal-mining companies who walked into the office and said he was not there to complain, but to ask how he could help ensure Transnet succeeded. The CEO said, “Failure is not an option for you, tell me whatever it is, and I will do it to help you succeed.” Sangqu said he gave him a list of three things, adding that he used this particular example as this CEO represented several customers who are prepared to do anything and everything to ensure that Transnet succeeds. “I ask, ‘How could we possibly fail them?’ Failure is not an option and with people like that on our side, we simply have to rise to the occasion.”
Despite small achievements, the leadership journey has not been straightforward. When a new executive team was being assembled, many of those approached declined to join and the reasons were consistently that Transnet was under intense public scrutiny, appearing frequently in the media, and the risks were seen as too high. Only those willing to “step forward and say, ‘Send me’” became part of the rebuilding effort.
A recurring challenge was an organisational culture that had, at times, paralysed decision-making. Early board reports detailed operational failures but offered no recommendations, effectively shifting responsibility upwards. This had to change and executives were encouraged to make decisions, even imperfect ones, and trust had to be rebuilt across all levels to move forward.
Governance has become a central pillar of the turnaround. Oversight structures have been strengthened, accountability reinforced, and a zero-tolerance stance adopted on misconduct across the organisation and its suppliers.
On operations, Dr. Sangqu said each line of the income statement was interrogated, revealing long-term structural issues, including historically low investment in maintenance. The result was infrastructure deterioration that had built up over years.
Freight rail, described as the backbone of the economy, remained central, said Sangqu.
Throughout, three guiding principles were reinforced: openness, transparency, and honesty. While challenges remain, including ongoing risks such as theft and operational disruption, Sangqu maintains that the organisation has moved from crisis towards stability, even if the journey is far from complete.
