Revenue rises from R37bn to R61bn in five years
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.
The shipping turnaround times reflected well, with exceptions being East London and Richards Bay, Gama said.
Port Authority revenue decreased by 2% to R9.7-billion, attributed to an increase in clawback to R752-million.
The net operating expenses in this division increased by 5.4% to R3.4-billion as a result of an increase in personnel and training costs as well as energy costs due to higher tariffs, Gama said.
In addition, Transnet spent R45.2-billion on BBBEE projects that have resulted in the creation of about 21 000 jobs.
Gama said the group’s massive procurement spend, including capital investment, was the largest contributor towards localisation and empowerment.
“Transnet spent R9.4-billion on black-owned enterprises, R4.1billion on women’s black-owned enterprises, R3-billion on exempted micro-enterprises, and R2-billion on qualifying small enterprises,” he said.
Speaking on the sidelines, Gama said Transnet was well positioned to help the government with its industrialisation policy, but maintained that caution would be exercised to avoid making decisions that would create shocks in the
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