State freight rail and ports corporate Transnet has posted a benefit of a few R159 million for the primary six months of this monetary yr after posting a loss of a few R78 million in 2021.
The corporate has additionally posted a 2% building up in earnings over the similar duration – up from R35.4 billion to R36.1 billion.
Transnet stated its paintings from April to September has been hampered by way of severe disruptions.
“Transnet’s efficiency for the duration was once underpinned by way of vital operational disruptions, related to the floods in KwaZulu-Natal at the beginning of the monetary yr and the ongoing binding constraints of vandalism of its infrastructure, together with gas and cable robbery, in addition to the unavailability of locomotives.
“The underperformance of TFR (Transnet Freight Rail), which contributes 45% of total revenue, is mainly driven by the challenges mentioned above and resulted in Transnet not meeting the cash interest cover ratio of 2.5x for some lenders. However, all the affected have provided the required waivers to Transnet,” the corporate stated.
Transnet added that an settlement reached with CRRC E-Loco Supply for the upkeep of locomotives “is expected to unlock the bottlenecks related to the availability of locomotives on key corridors, including the coal and iron-ore lines”.
Other key options for Transnet come with:
Earnings earlier than hobby, taxes, depreciation and amortization had been down some 2.5% from R13.3 billion to R12.9 billion
Cash generated after operating capital adjustments is R11.9 billion
Capital funding to maintain and increase operations stands at R6 billion
The corporate stated it has a favorable outlook and key some of the movements it’s taking to develop and switch across the state-owned corporate come with:
Request for proposals are open for the upgrading of the Durban and Ngqura Container terminals
A request for proposals has been despatched out for the development of a Liquefied Natural Gas (LNG) terminal on the Port of Richard’s Bay.
Proposals critiques are underway for the improvement of Boegoebaai Port and Rail
Traxion Rail has been awarded a slot at the East London rail line in a primary for the corporate
A request for proposals has been despatched out for financing and building of the Ngqura Manganese Export Terminal
The feasibility for the 6 million ton enlargement of the manganese line is because of be finished by way of the top of this monetary yr
Transnet Freight Rail and Transnet Port Terminals are in the method of purchasing longer term upkeep agreements for locomotives and cranes which the corporate expects to strengthen reliability and entrench a tradition of upkeep at
“There is meaningful progress in the implementation of our strategy to grow and fix the core of our operations and partner with the private sector to improve efficiencies and increase capacity,” Transnet stated.