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Transnet records R5-billion profit 2021/2022 financial year

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State-owned ports and rail company Transnet released its financials for the year 2021/2022, reporting a R5 billion profit.

Transnet has also seen its first unqualified audit in four years.

CEO Portia Derby attributes profits to improvements in earnings and a decrease in asset impairments.

Its investment property has also had a fair value adjustment. She does, however, stress that threats to security have compelled them to increase their expenditure.

This will increase from 4% to 5% of their budget, which is roughly about R4 billion.

Availing rail lines to private operators 

In April, Transnet Freight Rail announced it will make the first slots on its lines available to private operators. This is in a bid to maximise economic opportunities offered by rail in the country.

The company said bids will be taken from 01 April to 31 May 2022.

Transnet Freight Rail CEO Sizakele Mzimela says the appropriate pricing will encourage the use of railways instead of the road network to move goods.

Six of the slots are on the container corridor between City Deep in Johannesburg and Durban.

The other 10 are on the line between Pretoria and East London.

The announcement has since been welcomed by the African Rail Industry Association (ARIA).

ARIA says the move will attract investment and could lead to a stronger economy and more jobs.

In the video below, Mesela Nhlapo, CEO of the African Rail Industry Association, explains more: 

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