Transnet earnings up on coal, iron-ore volumes

Johannesburg - State-owned rail and ports operator Transnet said full-year profit gained 8.2% as the company transported higher volumes of coal, iron ore and manganese.

Earnings before interest, tax, depreciation and amortisation increased to R25.6bn in the 12 months to March, acting chief executive officer Siyabonga Gama said in Johannesburg on Tuesday. Revenue advanced 8% to R61.2bn.

“The increase in revenue of Transnet is largely driven by volume growth,” Gama told reporters.

Transnet is in the third year of a seven-year, R336bn plan to upgrade South Africa’s rail and port capacity. The company last year placed orders for 1 064 new diesel and electric locomotives, and unveiled agreements for R13bn of financing towards the purchases in March.

The company’s coal volumes rose 9% in the fiscal year, while iron ore and manganese volumes increased 11%, Gama said. The executive took over in April from CEO Brian Molefe, who was moved to power utility Eskom to help tackle supply shortages and a cash flow gap.