TRANSNET has recorded a healthy 7% increase in turnover for the financial year 2005/06, but a massive 57% increase in operating profits. In the annual report delivered by CEO Maria Ramos last week, this was recorded as R26.3-billion in revenue and R8.5-bn in profit. “Things can only get better,” said Ramos, looking at another three to five years to turn the state transport corporation around, but already having shown two good years of profit and firing up her enthusiasm for the future. Meantime, Transnet is to invest R64.5-bn in capital expenditure over the next five years – most of which will go to rail (R34.1-bn); ports, (R24.9-bn); and pipelines (R4.9-bn). This will be financed by cash from operations together with borrowings, according to Ramos. But, she added: “All these projects will be based on earning returns greater than our cost of capital.” A new division is also to be added to Transnet’s corporate office. This is due to manage the parastatal’s largest new projects - such as the expansion of Cape Town’s container terminal; and the widening of the Durban harbour mouth.
