Freight helps Transnet’s profit balloon
Economist warns that cost cuts come at the expense of other players
In the previous version of this story an incorrect set of data was used. This is an updated version. State-owned rail and logistics group Transnet has reported a 230% increase in net profit to R3.48bn for the half-year to September 30 2017. Transnet said it achieved the result with a 13.8% increase in revenue to R37.1bn from R32.6bn in the previous period, due mainly to 7.9% higher general freight volumes. Among these, export-coal railed volumes rose 6.5% and 11.4% in railed containers and automotive volumes. Chrome and manganese volumes increased 19.2% to 3.1-million tonnes and 25.9% to 6.8-million tonnes, respectively. However, Mike Schussler, an economist at economists.co.za, said on Monday he had some reservations about Transnet’s profit, in which cost containment had played a big part. “This comes at a cost to other parties. At the harbours, for instance, where Transnet has a monopoly, the delays are getting longer and longer. Ships now wait up to 30 hours before they can star...
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