TUESDAY, 10.30AM:
TRANSNET, the parastatal transport holding company has managed to curtail its loss for the year to March 31 to R170-million, from R253-million the previous year, largely due to a leap in profit at rail subsidiary Spoornet and reductions in labour costs.
Transnet MD Saki Macozoma said the group had “done well” to increase turnover 12% to R20,1-billion (R17,9-billion) and raise operating profit by 5% to R3-billion (R2,9-billion) despite continuing losses at some subsidiaries. Overall, good profit improvements by Spoornet, Petronet an Portnet were partly offset by losses at SA Airways, PX and Autonet. The 7% increase in net operating profit to R1,9-billion was, however, effectively wiped out by medical aid fund payouts and the group’s huge pension deficit, together totalling R2,1-billion.
However, Transnet financial director Gloria Serobe said the fund’s actuarially assessed deficit was reduced to R3,2-billion, with a funding level of over 90%, compared to the 64% of a few years ago. She added that the challenge of the pension fund deficit is currently being addressed by Trasnet and government throught the Stride commission, and that the deficit will be further reduced this year through restructuring health benefits and phasing out annual overpayments.
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