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Big shunting job for Jakavula at Spoornet
Thabo Kobokoane
ZANDILE JAKAVULA
TITLE: Chief executive of Spoornet
AGE: 50
EDUCATION: Lovedale High School, Eastern Cape; Higher Diploma in Personal Management, University ofFort Hare; Diploma in Strategic Management UCT Business School
QUALITY TIME: Watching sports
NEW Spoornet chief executive Zandile Jakavula is credited with turning the onceailing commuter rail operator Metrorail into a profitable entity, but can he do the same for the bigger, troubled sister company Spoornet?
Jakavula has no illusion about the task: "It's not going to be easy, but if we all focus on the same goal it can be done."
It will take more than words to turn Spoornet around.
The company is reportedly losing R120-million a month and recently reported a R266-milion loss for the six months to September.
In addition, staff morale has been low since strong measures to cut costs, including plans to slash 27 000 jobs and reduce the rail network, were announced last year.
The plans have, however, been put on hold by government pending the outcome of a second restructuring plan, expected to be completed in September.
The new plan, to be completed by a team of international rail turnaround specialists, appears to be a postponement of the inevitable while the corporation continues to bleed.
"No doubt, given the position at Spoornet, we will need to bite the bullet in order to make the business profitable.
"We cannot delay that any further or we will just continue to lose money," says Jakavula.
The exercise is not merely to reduce the number of job losses, but to find options for running the business profitably while accommodating as many people as possible.
The government appears to be unconvinced that the previous painful restructuring plans for Spoornet are essential.
It is now looking to the new management to find a more creative solution.
Jakavula, who has been at the helm since the beginning of February, says in two weeks' time a broad business plan for all five Spoornet divisions will be announced.
This will detail government's decision to corporatise and privatise (or grant concessions for) Spoornet's units, and announce plans to bring in turnaround specialists.
Jakavula says he has held discussions with two UK-based international rail consultancies - Halcrow and Gibbs - with a view to appointing one of them to assist Spoornet in three areas: operations; marketing; and sales, systems and processes.
It is likely efforts will be concentrated on turning around two of Spoornet's problematic divisions: Mainline Passenger Services and General Freight. Both divisions have been crosssubsidised in the past by coal line Coal-link and iron ore line Orex, divisions which government has said it wants to concession out.
"Neither general freight nor passenger services cannot stand alone under these circumstances and the challenge is to turn them around so that they are able to sustain themselves," he says.
Jakavula, who first joined the Transnet family in 1995 as senior manager in human resources, details some of his priorities: turning the business around and implementing a strong working culture.
"Colleagues are aware of problems such as lack of concentration in delivery. Our business depends on meeting the expectations of our customers.
"We need to be productive and raise the levels of customer satisfaction," he says.
In addition, Jakavula intends implementing an "objective" performance management system to reward hard workers and act against those not doing so well.
He also plans to improve communication - which he says is poor - and re-examine the pricing of services.
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