South Africa's Transnet first half profit up 35pc to US$242.6 million

SOUTH AFRICA's state-controlled rail and port corporation, Transnet, posted a first half net profit increase of 35 per cent year on year to ZAR1.71 billion (US$242.6 million), drawing on revenues of ZAR3 billion, an increase of 22.5 per cent.

Revenue was up 15.6 per cent to ZAR4.2 billion for Transnet National Ports Authority, which runs South Africa's major harbours, a gain attributed to an 11.8 per cent increase in cargo and a 3.9 per cent rise in tariffs.

Said acting Transnet CEO Chris Wells: "On the ports' side, container volumes showed strong growth to over two million TEU, while automotive volumes grew by 91.3 per cent to 307,177 units, buoyed to some extent by the FIFA Soccer World Cup."On rail, both the iron-ore and coal lines recorded their best levels during September, and are both likely to record strong growth in volumes compared to the previous year," he said.

Much has been credited to Transnet's Quantum Leap strategy, according to London's Containerisation International. which quoted Mr Wells saying it "aimed to change the trajectory of performance improvements at the group to higher levels.

"Further productivity gains, especially gross crane moves per hour [GCH], is showing improvements across the board. The new container terminal at Pier 1 in Durban is now operating at 30 GCH - a 50 per cent improvement of on last year's average of 20 GCH. However, Durban Container Terminal, where improvements have not been as significant, requires management focus," he said.

Mr Wells anticipates continued advancement in the second half. "We are beginning to see the impact of our interventions in line with the Quantum Leap strategy on our operations," he said.

Source: SchedNet