Cape Town — South Africa’s troubled state-owned rail and transport company, Transnet, recorded a reported loss of R1.6b due to declining volumes of rails, ports and pipelines.
The losses were measured over a six month period until 30 September. Transnet reported a profit of R159m in the same period last year and despite reporting a revenue rise of 8.6% to R39.2bn in the six months thanks to tariff increases for its services, costs rose 9.5% to R25.3bn due to higher payroll, electricity and security expenses, TimesLIVE reported.
#TransnetInterimResults | Transnet reports an 8,6% increase in revenue to R39,2 billion in the six months ended 30 September 2023.
Although volumes were slightly lower, Transnet remains positive about the various rail and port volume improvement initiatives it is implementing,… pic.twitter.com/968X4IXoR8— Transnet SOC Ltd (@follow_transnet) December 22, 2023
The raoil company revealed that lower volumes, especially at the Freight Rail, were impacted by various challenges that included collisions, community unrest on coal lines as well as derailments, cable theft and power outages. Rail volumes and petroleum decreased by 7.2%, while container volumes were down by 1.8%, SABC News reported.
Transnet remained positive that they will experience various rail and port volume improvement initiatives and said it expects improvements in its performance as its Recovery Plan gains momentum.
The company says it has prioritised the resolution of the challenges at the ports, with several short-term interventions in place at the Port of Durban to ease the congestion there.
In addition, the Transnet Recovery Plan also highlighted clear targets for volume growth and improvement in capacity over a 6, 12 and 18 month period, which will improe operations and performance.
#TransnetInterimResults | The #TransnetRecoveryPlan has clear targets for volume growth and the improvement of capacity over the next 6, 12 and 18 months, aimed at improving operational and financial performance and curbing expenses.
There is a focus on identifying quick wins… pic.twitter.com/HnH0fuDBUv— Transnet SOC Ltd (@follow_transnet) December 22, 2023
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Compiled by Matthew Petersen
