(Photo by Gallo Images / Foto24 / Deaan Vivier)
revenue increased by 1.6% to R68.3 billion, while earnings before interest,
taxation, depreciation and amortisation (EBITDA) rose 22.1% to R23,8 billion.
The company
said it was helped by the improvement in petroleum and container volumes,
however its freight rail business struggled.
The number
of locomotives in Transnet Freight Rail’s fleet
has declined by 25% since 2018 – from 2 215 to 1 656 locomotives.
“The ability
to access spare parts of certain locomotives has been jeopardised by the 1 064
review application and thus affecting the reliability and availability of
locomotives,” Transnet said.
Transnet and the Special Investigating Unit have launched legal
proceedings against the Chinese Railway Rolling Stock Corporation (CRRC) over
the irregular procurement of 1 064 locomotives at the height of state capture
in South Africa.
An interim order handed down by the Special Tribunal – which is
mandated to recover public funds syphoned through corruption – served to
freeze R4.2 billion in bank accounts linked to CRRC.
Meanwhile, the Chinese company has refused to provide Transnet
with specialised spares for Transnet’s locomotives.
On Friday, Transnet
said is progressing with negotiations with the company “that may draw protracted litigation to a close and
enable the rehabilitation of locomotives and security of supply”.Transnet
said that approximately 15,7 million tonnes of freight volumes have been lost
in the current financial year as a direct consequence of locomotive
unavailability on the North Corridor alone.The North Corridor moves coal from heartlands of Mpumalanga
to the Richards Bay Coal Terminal and into the export markets is Transnet’s
most lucrative line.Its rail service has also been hit by cable theft and
infrastructure vandalism.“Whilst much progress has been made in curbing fuel
theft from the petroleum pipeline, more than 1 000 kilometres of cable have been
stolen from our rail operations. This has resulted in more than R1.6 billion being spent on
security and about R400 million on replacing stolen cables, with operational
disruptions causing lost revenue estimated at R1.9 billion in TFR alone.”
