Transnet's results have prompted optimistic media headlines on the state of the notoriously inefficient government-owned enterprise.
Transnet announced on Tuesday that it had moved more freight in the past year than ever before. With more than 10% growth in rail volumes, it moved an unprecedented total of 201-million tonnes in the financial year ended March 31.
There was a reported 18% improvement in operational efficiencies and revenue was up by 20.9% to almost R50-billion. Earnings before tax grew by 19.8% to R18.9-billion and 3159 employees were recruited to fill critical vacancies.
Transnet boss Brian Molefe took hold of the organisation's steering wheel in February 2011 and consistently promised he would soon turn around the underperforming parastatal.
With the adoption of the market demand strategy, its R300-billion capital investment plan, Transnet's long-term investment strategy is certainly on track, if the numbers are anything to go by.
"Capital investment for the year amounted to R22.3-billion excluding capitalised borrowing costs. About R11.6-billion was invested in the expansion of current infrastructure and equipment and R10.7-billion was invested in maintaining existing capacity," the report said.
Numerous projects are on the go. Payment for the acquisition of the former Durban international airport site was made during the year, in addition to Transnet's investment of R22.3-billion and it has committed to investing R31.2-billion in the year ahead.
The expansion of the iron ore line from the Northern Cape to Saldanha is nearly finished following a R1.6-billion investment in iron ore expansion projects and locomotive acquisitions in the past year, and R2.2-billion was invested in the coal line expansion from Mpumalanga to Richards Bay.
With sustaining capital, investment on the coal line is estimated to be R31.6-billion over the next seven years.