Leonard Neill
SPOORNET MAY well start showing a profit in the near future which will be a marked turn around from its dismal performances in recent years, says chief executive officer Zandile Jakavula.
We have budgeted for a loss of R400million in the current year. I think eventual figures will show that we have halved that, that it will be something more like R200 million.
Now I'm looking at a profit margin, even if it is R10 million in the next year. It is a target we have set and which we plan to achieve.
The forecast comes from the man who turned Metrorail from its massive loss situation to a profitable concern in quick time after being appointed at its head.
Now aiming to steer Spoornet into the black, Jakavula has introduced tough measures in an effort to cut losses and is confident the nation's rail provider, especially in the freight sector, can prove itself profitable.
In general we are pleased that in spite of all that could have led to a negative performance, such as commodity prices which are still low as well as floods that adversely affected mainly our over-border traffic, our business continues to show signs of recovery, he says.
Cost-cutting, the elimination of unnecessary work positions, and refocusing the operation's business into better performance sectors have proved their value. In addition performance rewards, and even incentive bonus schemes involving staff at all levels, have been introduced.
We are going full steam ahead in restructuring with a purpose, and it is starting to have its effect on Spoornet in general, he told FTW.
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