Green alternatives sought as energy costs rise

AFTER personnel (51%), the main cost for Transnet in the past financial year was energy, which comprises 18% of the total costs of the company.

Transnet Group chief executive Brian Molefe said energy costs increased by 10.3% compared to the previous year, due to higher electricity tariffs as well as fuel price increases.

To curb this, Transnet was investing in green energy with 176185 MWh electricity regenerated by the new 19E and 15E locomotives on the iron ore and coal lines in the past financial year.

As countries are divesting from nuclear energy, they are importing more coal.

However, Transnet would keep an eye on the influence shale gas mining would have on the domestic coal markets.

The company is part of a gas planning steering committee and is keeping track of shale gas developments, for the purposes of long-term investment in green energy. – Cindy Preller