Africa-Press – South-Africa. State-owned Transnet, which oversees SA’s rail, pipelines and ports, has reported a slight rise in revenue for its six months to end September, but margins still deteriorated, while volumes in Transnet Freight Rail fell almost a tenth.
Group revenue rose 2% to R36.1 billion to end-September, lifted by improved petroleum and container volumes, Transnet said on Thursday, but core profit from operations slipped 2.5% to R12.9 billion, with its rail business under pressure.
Volumes in Transnet Freight Rail fell 9.2% to 81.5 million tonnes, with general freight crashing just over 15%, amid KZN floods, security challenges in the form of cable theft, vandalism, network deterioration and resource constraints.
Transnet’s dysfunction, which was also worsened by an 11-day wage strike in October, has been in the spotlight in 2022. Exporters, such as coal miners, have been forced to turn to road transport at they look to cash in on record prices.
During the period, Transnet railed 10.3% less export coal than in the prior year, while iron ore export volumes declined 1.4%.
Transnet Ports Terminals fared better, with revenue jumping almost a fifth as it bounced back from Covid-19, while container volumes rose 3.3%. The firm’s pipeline business benefitted from a pick-up in petroleum volumes as economic conditions improved.
Transnet said the outlook for the second half of the year has clouded by severe load shedding, higher domestic inflation, rising interest rates and dynamic economic conditions. “The recent labour strike action has also muddied the waters of potential recovery for the next six months,” it added.
It said in a statement, however, it was making meaningful progress in implementing its strategy to grow and fix its operations, as well as partner with the private sector. The transactions it has entered into include Transnet Freight Rail and Transnet Port Terminals commencing the procurement process to enter into long term Master Service Agreements for maintenance of locomotives and cranes.
“This will significantly improve reliability of these crucial assets and start the process of entrenching a maintenance culture in Transnet,” it said.
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