Transnet is the one major state-owned entity (SOE) whose reputation has remained relatively strong over the past decade. It did not let SA down disastrously by neglecting its own core business, as Eskom did; and it has not needed repeated state bailouts and guarantees, as SA Airways has.That said, Transnet hasn’t exactly covered itself in glory. In its reporting, its fondness for emphasising the financial details, as if it were a listed company, over the operational nitty-gritty has tended to obscure that it is arguably an organisation in long-term decline. Transnet grew revenue 1.2% and operating expenses rose 2.3% in the year to March. Profit (which in an SOE should really be regarded as surplus money to be reinvested) was just R393m, compared with R5.3bn in 2015.It’s true that the rail freight division was affected by lower global demand for commodities and a stagnant SA economy. Discretionary capital expenditure decreased 42% year-on-year, and CFO Garry Pita said revisions would...
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