A happy first half for Transnet

Although SA has also
slipped into the global
economic sludge, Transnet
has at least managed to
increase its revenues in the
first half of the financial
year – up by 12.9% over
the same period last year to
hit R16.8- billion.
In the same period, the
capital expenditure was
up 22.3% to R8.3-bn, but
the cash generated from
operations dwindled by
15.6% to R5.2- bn.
According to the halfyear
report, revenues
increased across all five
operating divisions.
Volumes also increased
in all of the operating
divisions with the
exception of Transnet
Freight Rail (TFR) –
although its container
volumes railed to and from
the ports did increase.
The railways increased
revenue by 11.1% to
R9.2-bn.
But it was an up and
down story for the main
cargoes. Iron ore export
tons increased by 5% to
15.9-million tons, but
volumes on the coal line
dropped by 6% to 29.9-mt
– primarily due, said TFR,
“to operational issues and
derailments”.
This problem, the
report added, “is
receiving significant
management attention
to stabilise operations.
And, consequently, steady
improvement is expected
for the rest of the year.”
Meanwhile, general
freight tons – which make
up a major portion of
TFR’s revenue – remained
constant at 43.5-mt,
although container volumes
increased by 9% to
287 000 teus.
Transnet National Ports
Authority (TNPA) also saw
a 9.9% increase in revenue
to R3.8-bn.
The main drivers in
this, said management,
were a continued growth
in container imports
and exports, liquid bulk
imports and automotive
export volumes. However,
vehicle import volumes
decreased due to a decline
in local demand.
Transnet Port Terminals
(TPT) also bumped up its
revenue by 14.7% to
R2.7-bn.
This increase was
driven mainly by increased
volumes in the container
sector (6.7%), bulk sector
(10.5%) and automotive
sector (4.8%). The breakbulk
sector, however,
experienced an 11.9%
decline in volume mainly
due to reduced steel
exports.
A 20.9% increase in
operating costs mainly
came from increased
personnel numbers after
the commissioning of
the new Pier 1 container
terminal in Durban, and
significant increases in
fuel costs.