Transnet has reported a 20.9% increase in revenue to R45.9 billion for the year financial ended in March — up from R38 billion in the previous period, the company said on Tuesday.

The growth, it said, was due to growth in volumes in the general freight, export coal, export iron ore and container volumes as well as an 18% improvement in productivity.

The logistics company has seen a 10.4% growth in rail volumes to an unprecedented 201 million tons. This is the highest tonnage moved in Transnet’s history.

Capital investment for the year increased to R22.3 billion (excluding capitalised borrowing costs) with R11.6 billion being invested in capacity expansion and R10.7 billion in maintenance of existing capacity.

The utility is investing R300 billion over the next seven years to expand its capacity.

The year’s investment lifts the total amount spent over the last seven years to R115.5 billion.

Operating costs increased by 21.8% to R27 billion from R22.2 billion in the previous period.

“The main drivers of the higher expenses were a 46.4% increase in material costs, an 18.8% increase in personnel costs as well as a 31.4% jump in energy prices.

“These increases were in line with our rising activity levels accompanied by higher maintenance costs to support volume growth, costs of improving safety in the workplace – a key priority – as well as higher electricity tariffs and fuel price increases,” said Transnet. – SAnews.gov.za