TRANSNET RESULTS: TFR

Categorized | Mishaps Africa, South Africa

Posted on 26 June 2009 by Railways Africa Editor

During the financial year to 31 March 2009, revenue at Transnet Freight Rail (TFR) increased by 12.6% to R18.7 billion compared to the prior year. Iron ore export tons increased by 15% while general freight tons – which make up a major portion of TFR’s revenue – decreased by 7.4% to 77.2mt, when compared to the previous year. This is attributed to the slowdown in economic growth. Export coal volumes decreased by 3% to 61.9mt “due to customer cancellations, mine operational issues and derailments”.

Rail volumes dropped 19% in the second half of the financial year, and container volumes at the ports dropped 12%.

Revenue was impacted by a better traffic mix and “prioritisation of higher yield volumes for general freight”. In addition, after several years of below-inflation adjustments, TFR implemented a revised contracted tariff on the coal export line which significantly impacted on revenue for the year.

The implementation of a strict cost containment programme (especially in the second half of the year) and the focus on key operational efficiencies have both improved operating yields and reduced overhead costs resulting in EBITDA of R5.7 billion, despite significant increases in both energy and maintenance related costs.

“The focus for the year ahead will be on maximising a number of volume growth opportunities, especially export iron ore, domestic coal and containers on rail.” A particular focus will be on operational efficiencies, with especial emphasis on safety. There were 13 fatalities and a number of other serious incidents during the year, including derailments.

The acquisition of new locomotives, says the report, has been delayed because of “local assembly problems”.

[ It would be interesting – probably depressing – to see the cost of this delay quantified. – editor