Transnet sees increased efficiency and revenue growth – annual results

With a 16.6% increase in operational efficiency across all sectors, Transnet is making a “noteworthy contribution” in terms of reducing the cost of doing business, according to group acting CEO Siyabonga Gama.

He was speaking at yesterday’s announcement of Transnet’s annual financial results for the year ended March 31, 2015, showing that the group had seen an 8% growth in revenue to R61.2 billion (over last year’s figure of R56.6bn).

Gama commented that Transnet Freight Rail’s (TFR) general freight business (GFB) had increased by 3% over the 2013/2014 financial year. “This indicates an increasing modal shift from road to rail,” said Gama.  According to him, TFR’s on-time arrivals and departures for GFB improved “significantly” against budget, mainly due to improved monitoring of mainline trains by the National Command Centre.

Cycle times on the bulk lines also improved and this saw export coal volumes increase by 12% from 68.2 million tonnes (mt) to 76.3 (mt).  Export iron ore volumes were up by 10% from 54.3mt to 59.7mt.

Maritime container growth was flat with a marginal 1% increase in volume to 4 699 000 TEUs over the 4 641 000 TEUs recorded last year.  Gama pointed out that the increase was mainly due to increased containerisation in the bulk and breakbulk sectors in respect of  iron ore, magnetite and manganese.

According to him, this was offset by declining volumes in transhipment containers, vehicles and transport equipment imports, and exports of electronics, base metal and chemical products.

Train turnaround times at ports were up, with the exception of the Port of Saldhana which was challenged by equipment shortages and breakdowns, said Gama.
Ship turnaround times improved slightly at most ports, except for East London and Richards Bay which saw an increase of 6 and 7 hours respectively.