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%.

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