The Transnet Group noted that the company lost R7.3 billion in the year to the end of March 2024 and this is on top of the R5.1 billion that the company lost in 2023.
According to a statement by the beleaguered state-owned logistics group, the company’s revenue increased by more than 11% in the latest financial year of around R76.7 billion, this was due to tariff increases and higher rail and port volumes.
Transnet noted that its net operating expenses rose by more than 19% and this was due to a provision for ongoing litigation.
Transnet was ordered by the High Court in June to pay around R9.1 billion in damages to Sasol, TotalEnergies after the companies claimed that Transnet overcharged them for transporting crude oil.
Transnet has filed an appeal against the order.
Transnet secures R5 billion loan
Despite these negative financial results, Transnet was able to secure a R5 billion loan.
The New Development Bank (NDB) said on Friday that it had signed a R5 billion loan agreement with Transnet.
Transnet said that this investment would help support the modernisation and improvement of South Africa’s freight rail sector.
This will happen through the improvement and modernisation of the freight rail sector programme, which includes rail network infrastructure renewal, locomotive overhauls, and wagon fleet renewal, the company said.
“This investment is important for Transnet, as we accelerate the implementation of the Recovery Plan and economic reforms.
“The modernisation programme will enhance our operational capabilities and contribute to the growth and competitiveness of the economy,” Transnet Group Chief Executive, Michelle Phillips said.
IOL BUSINESS