Transnet spent ‘an unprecedented’ R31,8?bln on revamping and modernising its infrastructure

2014-07-01 00:00

TRANSNET, the transport utility and one of the biggest employers in KwaZulu-Natal, increased its capital spending by 15,6% in the year to March 31, 2014.

Chief executive Brian Molefe said in a statement yesterday the group had spent “an unprecedented” R31,8 billion on revamping and modernising its rail, pipeline and ports network in the financial year. This brought total capital spending by Transnet since 2010 to R121,5 billion.

Transnet is in the third year of a seven-year investment programme.

Its revenue was driven by a 14,2% increase in minerals and chrome volumes, and a 25,2% rise in automotive volumes and containers on rail.

Volumes at the heavy haul lines for coal and iron ore declined marginally year-on-year. The export coal line was hampered by a number of factors, chiefly a 33-day strike, a municipal power supply disruption at the Richards Bay Coal Terminal, and a longer than anticipated annual maintenance shutdown.

Port containers grew by 6,3%, while petroleum volumes were up 4,4% over the year.

Transnet’s key measure of profitability, earnings before interest, taxation, depreciation and amortisation, impressed by a 12,3% jump to R23,6 billion from the previous year’s R21,1 billion. During the year, Transnet raised R22,4 billion from the market and repaid R8 billion. It said gearing remained comfortable at 45,9%.

Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions. publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24


Book flights

Compare, Book, Fly

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.