Despite the impact of a sharp downturn in global and domestic economic activity, Transnet grew revenue by 6.4% to R32.2 billion during the six months ended 30 September.
This was driven by growth in export iron ore and Containers and Automotive Business volumes (CAB), said acting group chief executive, Siyabonga Gama, during the parastatal’s interim results announcement for the first half of the 2015/2016 financial year earlier today (Thursday).
Export iron ore volumes increased 7.5% to 30 million tonnes (mt) from 27.9 mt, while the container and automotive business increased volumes by 4.2% to 7.5mt. Gama pointed out that the rise in revenue was also driven by higher volumes at ports, particularly in the bulk and break-bulk sectors, which increased by 11.8% to 50.3mt.
Automotive volumes increased by 23% to 389 203 units, while container volumes at Transnet Port Terminals rose 2.3% to 2 341 711 twenty foot equivalent units (TEUs).
Transnet Pipelines increased petroleum volumes by 6% to 8 940 billion litres due to higher crude oil transported as refineries boosted inland production to ensure security of supply.
According to Gama, operational performance at ports also increased with average moves per ship working hour (SWH) – an internationally recognised measure of terminal productivity – recorded “significant gains” as management focused on turning vessels around quicker.
“The Ngqura Container Terminal led in the productivity stakes with a jump from an average 42 moves to 62, Durban’s Pier 1 increased from 47 to 50 moves, while Pier 2 improved from 59 to 62,” said Gama.
Railway lines slump
Gama noted that Transnet Freight Rail (TFR) bore the full impact of muted global economic activity on several of its lines, including export coal, which declined by 3% to 3.4mt as mines reduced demand for trains.
“The biggest decline was in steel and cement, also on the back of lower commodity prices Manganese, minerals and chrome volumes were flat,” he said, adding that to mitigate the impact of declining volumes on revenue, TFR prioritised high-yield commodities.
