Shipper pressing on despite downturn

THE global economic slowdown has not deterred South African transport player Transnet from continuing with its capacity expansion and maintenance program.

Noel Dyson

The country’s main coal shipper said there had been a noticeable decrease in the demand for South African exports due to a slower global economy.

During the half year to September 30, Transnet recorded a 34.5% increase in capital expenditure to 12.8 billion rand ($US1.47 billion).

Transnet is planning a dig-out port at the old Durban International Airport site to accommodate its rising cargo handling needs.

It also invested 623 million rand in the expansion projects and acquisition of class 19E locomotives for the coal line.

Transnet reported its revenue for the half year to September 30 was up 11% to 24.9 billion rand.

Earnings before interest, tax, depreciation and amortisation were up 7.15 to 10.1 billion rand.

Rail volumes – which includes the shipping of other minerals – were up 7.5%.

Cash generated from operations after working capital changes grew by 18.1% to 9.8 billion rand.

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