Transnet announced an impressive 5.3% increase in its revenue and an overall stellar performance for the financial year which ended in March 2017.
Transnet CEO, Siyabonga Gama said this was despite the volatile economic environment, tough competition and depressed commodity prices.
He was briefing Members of Parliament on the company’s Annual Report and Financial statements for 2016/17 financial year.
Transnet’s improved revenue was underlined mainly by a 4.9% increase in general freight volumes, 2.4% in export coal railed volumes,24.3% in railed automotive and container volumes and a record 12.1 million tonnes transported for manganese.
Gama told lawmakers that Transnet’s liquidity position demonstrated the company’s financial agility and operational endurance.
“We grew up to R27.7 billion against the revenue of R65.5 billion. I think this is a respectable improvement and increase given the constraint of the economy which only grew by 0.7% ,it’s a good progress that we have made.”
Since 2012, the company has invested R145 billion in its infrastructure, especially the acquisition of new locomotives.
But lawmakers say it is the procurement of those locomotives and other services that still needs more probing.
DA’s Natasha Mazzone says:”They say Transnet’s revenue still need more probing, especially money paid to companies such as Trillian, regiments and Mackenzie and the real losses emanating from such payments.”
On Wednesday presentation comes a day after President Cyril Ramaphosa met several executives of a number of state-owned companies.
In his state of the nation address, he said the government was going to intervene decisively to stabilise these companies, and take further measures to ensure that they fulfil their mandates of encouraging growth and creating jobs.
Click video below:
