Transnet records R1.6 billion loss amid declining volumes

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Embattled ports and rail company Transnet has reported a loss of R1.6 billion for the six months to 30 September. The troubled state-owned company says this is the result of declining rail, port and pipeline volumes.

Logistics giant says lower volumes, especially at Transnet Freight Rail were impacted by various operational challenges such as collisions and community unrest on the coal line and equipment challenges as well as derailments, cable theft and power outages.

Transnet says rail volumes were down by 7.2%, petroleum was also down 7.2% and container volumes were down 1.8%.

It adds that net operating expenses increased by 9.5% to just over R25 billion due mainly to increased labour costs, electricity tariff increases, and security.

Transnet says it remains positive about various rail and port volume improvement initiatives it is implementing. It says it expects improvements in its performance as its Recovery Plan gains momentum.

The company says it has prioritised the resolution of the challenges at the ports, with several short-term interventions in place at the Port of Durban to ease the congestion there.