Transnet showing good financial results
TRANSNET released its annual financial statement on the 10 of July 2012 which showed a 20.9% increase in revenue to R45.9 billion for the year financial ended in March. Despite the weakening economic environment since October 2011, Transnet’s performance has remained positive and proved that by showing good financial results. The Annual Report indicates that the growth in revenue was driven by volume growth in the face of a declining output from extractive or resource industries.
The growth was due to growth in volumes in the general freight, export coal, export iron ore and container volumes as well as an 18% improvement in productivity. The company has seen a 10.4% growth in rail volumes to an unprecedented 201 million tons, making it the highest tonnage moved in Transnet’s history. Transnet Freight Rail (TFR) is now the largest contributor to group revenues and profits thereby projecting a positive outlook and equitable contribution by all Transnet operating divisions to the sustainability of the group.
Transnet has increased its capital investment for the year to a record R22.3 billion, with R11.6 billion being invested in capacity expansion and R10.7 billion in the maintenance of existing capacity. This increased investment is part of making South Africa globally competitive both in pricing and efficiency to focus on getting South Africa working, growing and moving.