Transnet pulls ahead on BEE

Revenue rises from R37bn to R61bn in five years

[caption id="attachment_91706" align="alignright" width="204"] SIYABONGA GAMA[/caption]

STATE-OWNED enterprise Transnet continued to deliver a solid set of year-end results that saw revenue increase by 8.2% to R61-billion. This is despite a slight contraction of the National Ports Authority division, reflected in the company’s audited financial results for the year ended March 31.

At a presentation in Johannesburg yesterday, Transnet acting group chief executive Siyabonga Gama said the company had been able to maintain a strong cashgenerating ability despite tough economic conditions in the coal and iron ore export markets.

“Despite a decrease in iron ore prices, export volumes increased by 10% from 54.3 million tons to 59.7 million tons which was a result of our key customers recovering from production constraints,” he said.

Over the past five years since 2011, the enterprise has managed to grow its revenue base from R37-billion to R61-billion.

This year, the company saw operational efficiency gains increase by 16.6%.

Some of the highlights in infrastructure investment indicate that its Freight Rail division has received 147 new electric locomotives with plans to receive nine more at the end of July 2015.

But the performance was not without its setbacks as the company reported higher energy costs due to the tariff increases.

Transnet’s National Ports Authority division, which includes the Port of Ngqura in Nelson Mandela Bay, contributed about 13% towards the revenue base.

Asked whether Transnet would assist in contributing towards the government target of raising R100-billion to create 100 black industrialists as part of the industrialist programme over the next three to five years, Gama said the entity had not yet engaged in talks with the government, “but it is something we may be looking at in time”. - Ayanda Mdluli