Monday , 26 August 2019
Latest News

Container throughput rises in Transnet’s solid half year results

South Africa’s state-owned freight and logistics company, Transnet, has reported a 6.1% year-on-year growth in container throughput in its half year results.

The number of containers handled rose to 2.4m teu in the first six months of the year which the company attributed to considerable growth in local and international consumer demand.

However average moves per ship working hours (SWH) fell in all but one of the Transnet’s terminals.

That one exception was Durban Pier 1 Container Terminal, where SWH performance rose from 45 to 47 moves.

Transnet National Ports Authority, the arm responsible for port operations and providing port infrastructure, reported a 16.1% increase in revenue to ZAR6.5bn (US$463m).

This growth was said to be largely a result of increases in cargo dues revenue and the release of clawback provisions informed by regulatory decisions.

Transnet as whole, which is also responsible for South Africa’s rail and pipelines, posted revenue growth of 13.8% with a figure of ZAR37.1bn (US$2.6bn).

An increase of 11.4% in railed container and automotive volumes to 4.9 mega tonnes was highlighted as a key reason for the growth in revenue.

Net profit leaped by 230% to ZAR3.4bn (US$242m), while earnings before interest, taxation, depreciation and amortisation (EBITDA) grew by 17.7% to ZAR16.3bn (US$1.2bn).

Profit from operations after depreciation and amortisation rose by 69.1% to ZAR9.9bn (US$705,795m).

The company spent ZAR8.9bn (US$633m) on capital investment, of which ZAR6.8bn (US$484m) was invested to sustain capacity in the ports and rail operation divisions.

Finally cash generated from operations increased by 17.6% to ZAR17.2bn (US$1.2bn), while operating costs were kept down to ZAR20.8bn (US$1.5bn), a saving of ZAR2.2bn (US$156,820m).