TRANSNET CUTS BACK
Posted on 19 March 2009
According to Business Report, the United Transport and Allied Trade Union (Utatu) has been informed by Transnet that current cost-saving measures include the cancellation of new projects. At the end of the 2008/09 financial year in March, revenue is expected to be 15% below the R30 billion reported at the end of 2007/08 because of “tumbling volumes” being transported.
“It looks,” the paper suggested in February, “as if the R80.3 billion expansion programme that Ramos launched last year may not go ahead as planned. Unfortunately, it is not yet clear how the decline in volumes – which was partly confirmed by Transnet last year and by some of its customers – will affect the parastatal …. But although Transnet is yet to announce either postponing or reviewing its capital expenditure plans, it is clear that it would be difficult to continue as planned.”
[ Transnet has in fact indicated that the planned capital expenditure is not being put on hold. However, the intended purchase of 212 new diesel locomotives has been cut back to 100. – editor
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