Rail helps boost Transnet profits

Transnet Freight Rail – which recorded 25% growth in automotive and container business – contributed 54% to Transnet’s earnings before interest, taxation, depreciation and amortisation (EBITDA) which jumped 23% to R23.6bn for the financial year ended 31 March 2014. Transnet CEO, Brian Molefe, said at the announcement of the group’s financial results on Monday that the state-owned agency’s revenue earnings had increased 12.8% to R56.6bn. Profit for the year grew by 24.9% to R5.2 billion. “As a result of this solid growth we have stepped up our capital investment to R31.8 billion.” Molefe told media that this 15.5% increase would be spent on new rail wagons and port equipment and to expand the capacity of the existing manganese ore railway line from the Northern Cape to Ngqura port in the Eastern Cape. Port containers recorded a 6.3% growth in volume but productivity and efficiency at South Africa’s key ports were down, with the exception of Durban, which saw a 3% improvement in turnaround time. Cape Town port’s turnaround time fell by 5% and Richards Bay terminal saw a 16% decrease in turnaround time. Responding to a question on whether the capital expenditure on the Market Demand Strategy (MDS) was “too ambitious” for current demand, Molefe noted that the acquisitions and expansion were to accommodate demand for up to 50 years. CAPTION Brian Molefe (left) is pictured with Anoj Sing, Transnet CFO, at the official announcement of Transnet’s financial results in Sandton on Monday. Photo: Shannon Van Zyl