TRANSNET INTERIM RESULTS: OPERATING DIVISIONS
Posted on 01 November 2009 by Railways Africa Editor
From Transnet’s published interim results for the six months ended 30 September 2009 -
Transnet Freight Rail (TFR)
“Revenue increased by 7.4% to R9.9 billion compared to the prior period due to an increase in iron ore volumes railed as a result of the Sishen expansion project, higher coal prices in accordance with newly negotiated contracts and a better yield mix from the general freight business. Service levels at TFR are showing signs of improvement with the implementation of the corridor view of the business that allows for integrated planning and execution. This has resulted in the iron ore export corridor achieving a weekly tonnage record of 955,800 tons and the Natal corridor achieving a record 32,592 TEUs (twenty foot equivalent containers) transported. The challenge going forward is to ensure the sustainability of this performance.
“The continuation of a strict cost containment programme in the first six months of this financial year and the focus on key operational efficiencies has improved operating yields and reduced overhead costs, resulting in a 25.1% improvement in EBITDA to R3.5 billion when compared to the prior period.
Transnet Rail Engineering (TRE)
“Transnet Rail Engineering’s internal revenue decreased by 13% to R3 billion compared to the prior period due to reduced backlog maintenance performed for TFR. Maintenance and refurbishment programmes for locomotives and wagons continue to focus on the availability and reliability of rolling stock, which continues to improve, impacting positively on the service delivery of TFR. The external revenue of TRE reflected an increase of 42.7% to R805 million, mainly due to the increased number of coach upgrades for the Passenger Rail Agency of South Africa even though the number of coach upgrades was lower than anticipated.
“The operating division has identified numerous cost reduction and service optimisation initiatives to target savings, particularly from lean manufacturing. Quality enhancements, the containment of losses and skills optimisation are important imperatives for the remainder of the year.”
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