Transnet profits exceed R5bn for the first time

Transnet SOC Ltd said its annual profit rose 25% as South Africa’s state-owned rail and ports operator boosted revenue from transporting minerals.

Net income advanced to R5.17-billion in the 12 months ended March 31 from R4.14-billion a year earlier, chief executive Brian Molefe told reporters on Monday in Johannesburg. Revenue increased 13% to R56.6-billion, he said.

The state-owned company is investing about R308-billion over seven years through 2019 to increase capacity in rail freight, ports and fuel pipelines in Africa’s second-biggest economy. Transnet hauls coal for companies including Glencore to Richards Bay Coal Terminal, the world’s biggest such facility, and moves goods for manufacturers such as Nissan Motor Company.

“It’s the first time that our profits are above R5-billion,” Molefe said.

In March, the company signed a R50-billion contract with four companies including General Electric and Bombardier for the supply of 1 064 electric and diesel locomotives.

Transnet plans to raise about R40-billion in the year through March 2015 as it invests in new infrastructure and equipment. The company’s borrowings rose 24% to R90.4-billion by March 31, Molefe said.

Rail volumes climbed 1.3% to 210.4-million metric tonnes from a year earlier, led by a 25% gain in containers and automotive and a 14% increase in mineral mining and chrome, Transnet said in a statement handed to reporters.

The volume of coal hauled in the period fell to 83.1-million tonnes from 84.3-million tonnes a year earlier mainly after Richards Bay Coal Terminal, located on South Africa’s northeastern coast, had to halt operations for almost 10 days in February because of faults on municipal power cables that cut supply, Molefe said.

Volumes of iron ore railed for export declined 3% to 54.3-million tonnes, he said. Transnet moves the steelmaking ingredient for clients such as Anglo American Plc’s Kumba Iron Ore unit. – Bloomberg

These are unprecedented times, and the role of media to tell and record the story of South Africa as it develops is more important than ever. But it comes at a cost. Advertisers are cancelling campaigns, and our live events have come to an abrupt halt. Our income has been slashed.

The Mail & Guardian is a proud news publisher with roots stretching back 35 years. We’ve survived thanks to the support of our readers, we will need you to help us get through this.

To help us ensure another 35 future years of fiercely independent journalism, please subscribe.

Advertisting

Stella set to retain her perks

Communication minister will keep Cabinet perks during her two months of special leave

Not a sweet deal, Mister

Mister Sweet workers say they will not risk their health, and the lives of others, to continue producing and packaging confectionaries

Covid-19 grounds Nigeria’s medical tourists

The country’s elites, including the president, travelled abroad for treatment but now they must use the country’s neglected health system

Nehawu launches urgent court bid over protective gear for health...

The health workers’ union says the government has rebuffed its attempts to meet about mitigating risks to workers

Press Releases

Rahima Moosa Hospital nursing college introduces no-touch facial recognition access system

The new system allows the hospital to enrol people’s faces immediately, using artificial intelligence, and integrates easily with existing access control infrastructure, including card readers and biometrics

Everyone’s talking about it. Even Kentucky

Earlier this year South African fried chicken fast-food chain, Chicken Licken®, launched a campaign for their wallet-friendly EasyBucks® meals, based on the idea of ‘Everyone’s talking about it.’

New energy mix on the cards

REI4P already has and will continue to yield thousands of employment opportunities

The online value of executive education in a Covid-19 world

Executive education courses further develop the skills of leaders in the workplace

Sisa Ntshona urges everyone to stay home, and consider travelling later

Sisa Ntshona has urged everyone to limit their movements in line with government’s request

SAB Zenzele’s special AGM postponed until further notice

An arrangement has been announced for shareholders and retailers to receive a 77.5% cash payout

20th Edition of the National Teaching Awards

Teachers are seldom recognised but they are indispensable to the country's education system

Awards affirm the vital work that teachers do

Government is committed to empowering South Africa’s teachers with skills, knowledge and techniques for a changing world