Transnet believes rail investment is paying off

14 July 2015 - 15:24 By RDM News Wire

Transnet’s year earnings before interest‚ taxation‚ depreciation and amortisation (EBITDA) rose by 8.2% to R25‚6 billion from last year’s R23‚6 billion. The company's focus on modernising its rail infrastructure surged ahead as capital investment for the year increased by 5‚7% to R33‚6 billion‚ Siyabonga Gama‚ acting group chief executive‚ said in a statement. Rail accounted for 74% of the total spend. The company said it invested R14‚5 billion on growing capacity and R19‚1 billion in maintenance of existing capacity.Transnet’s total capital expenditure spending over the last three years now stands at R92‚8 billion.Gama said overall revenue for the year ended 31 March 2015 grew 8% to R61‚2 billion‚ “driven by an impressive 7‚7% increase in rail volumes - particularly iron ore and manganese‚ coal and mineral mining and chrome exports”.“Containers and automotive rose 6‚7% as the road-to-rail migration led the charge to wrestle rail-friendly market share‚” he added.“Bulk and break bulk volumes at the ports impressed with an 8‚1% increase while Pipelines’ petroleum volumes rose 3‚6%. Transnet Engineering increased sales to customers other than Freight Rail by 6‚3% to R1‚7 billion‚ mainly driven by a strong focus on sales of locomotives and wagons to the rest of the continent.”Container volumes at the ports remained flat‚ however‚ while some General Freight Business commodities such as steel‚ cement and agriculture declined on the impact of declining global demand...

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