Transnet CEO Maria Ramos hopes the transfer of national carrier South African Airways (SAA) to the government will be complete by March next year.
Speaking at the announcement of Transnet’s results in Johannesburg on Monday, Ramos said a joint team with representatives from Transnet, SAA and the Department of Public Enterprises is working on an exit strategy for the airline.
The transfer for SAA to become a separate operating entity under the control of the government will, however, require the creation of a separate parliamentary SAA Bill, she said.
Transnet chief financial officer Chris Wells said the performance of SAA over the past year has seen “a big turnaround and the better management of operations”.
SAA’s turnover has increased by 6,7% for the financial year ended March 31, to R9,35-million in operating profit, which is mainly due to operational effectiveness, according to Wells.
Expenditure increased 2% on last year.
Wells said the results were particularly pleasing “given the strengthening of the rand and the increase in fuel prices during the year”.
The closure of the SAA hedge book and removal of embedded derivatives has been completed at a cost of more than R6-billion to Transnet.
“SAA’s fortunes have improved,” Ramos said, and of the R4-billion loan granted to SAA for recapitalisation, R1,6-billion will be repaid to Transnet as projects have been revalued at R2,4-billion.
“Until SAA is unbundled, we will stand by it financially and act as a bank to them,” Wells added.
As part of its disinvestments strategy and transfer of non-core assets, Transnet announced it will transfer its holdings in Equity Aviation, in which it owns a 49% stake; V&A Waterfront Holdings, in which it has a 26% stake; Metrorail; Shosholoza Meyl; and Transnet Housing, among others.
Transnet is to focus its efforts on rail, ports and pipeline operations for the next five years, and transform the group into a “focused freight transportation company”, Ramos said. — I-Net Bridge