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
