TRANSNET RESULTS
Posted on 26 June 2009
Despite the credit crisis, Transnet was able to raise R11.6 billion by issuing domestic bonds and local and international loans, acting chief executive Chris Wells reports. During the financial year ending on 31 March 2009, the group invested R19.4 billion, of which 56% was spent on expanding capacity and the rest on maintaining infrastructure and other assets. It was a difficult year, Wells said, especially in the second half. An 11% rise in revenue to R33.6 billion reflected lower volumes, offset by higher coal tariffs. Rail volumes dropped 19% in the second half, and container volumes at the ports dropped 12%. Operating costs rose 18%, reflecting the higher cost of fuel, electricity and steel.
Wells says his real concern is on the volume side, where decline was caused partly by the economy but also by operational issues. The “big challenge” is that volumes remain under considerable pressure. In response to the economic downturn, the group has introduced weekly reports on various areas in the business, cost reduction and the delaying of some projects. It will look for volume and revenue opportunities, save costs and make sure it spends wisely.
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