Transnet`s arivia disposal back on track

Johannesburg, 17 May 2006

Transnet`s nine-month dispute with four trade unions representing its employees ended this week, and the organisation can now begin with plans to dispose of non-core assets, including its stake in state IT group arivia.kom.

This is according to Transnet`s communications GM John Dludlu, who says the dispute resolution agreement signed on Monday will "clear the way for the disposal of all our non-core assets".

While unwilling to commit to an exact timeframe for the process to sell off Transnet`s arivia stake, he says the transport utility is "working to an 18-month time-table", and adds that "due process" must be followed with the selling-off of the shares, as with all the rest of Transnet`s non-core assets.

Dludlu indicated in February that "it has been Transnet`s intention to exit from a range of non-core assets it currently owns".

He adds that Transnet must also comply with the Public Financial Management Act and the Labour Relations Act.

In a statement released yesterday by Transnet, the organisation confirms it and the four labour unions "have agreed a common vision and a co-operative approach to the group`s restructuring".

"The restructuring process must have clear timeframes for the disposal of non-core businesses; in other words, those businesses that do not form part of freight rail, ports and pipelines," adds the statement.

Commenting on the agreement with the unions, Dludlu states: "We need more work on certain enterprises than others, but thanks to the agreement, we now have the basis and the framework to hasten our steps."