In the third year of its rolling seven-year investment programme Transnet released a buoyant set of financial results for the year ended 31 March 2014.

Revenue for the period under review grew to R56,6 billion, driven by a 14,2% increase in minerals and chrome volumes, and a 25,2% rise in automotive volumes and containers on rail.

The company spent R31,8 billion on revamping and modernising its rail, pipeline and ports network – taking the total since 2010 to R121,5 billion – the majority of which has been on Freight Rail. Highlights of the programme include the award of contracts for the ground-breaking purchase of 1 064 diesel and electric locomotives to four global Original Equipment Manufacturers (OEMs).

Infrastructure investment highlights for the year include:

•             Locomotive fleet renewal programme

a.            Awarded contract for the building of 1 064 diesel and electric locomotives to General Electric, China North Rail, China South Rail and Bombardier Transportation;

b.            Awarded contract for 60 diesel locomotives for the General Freight Business (GFB) to General Electric;

c.             Awarded contract for 100 electric locomotives to China South Rail;

d.            10 of the first 95 locomotives from China South Rail have been delivered and are undergoing operational readiness testing; and

e.            Took delivery of 32 new locomotives for the iron ore line and 43 diesels for the GFB. On the GFB, operational targets were reached four months ahead of schedule.

(All locomotives to be delivered within the next 36 months).

•             Wagons fleet programme

1. 3 281 wagons were built at Transnet facilities across the country. 1 500 wagons to be built over the next seven years in line with projected volume growth and locomotive renewal programme.

•             Port Infrastructure

1. Awarded contract for nine tug boats and one dredger.

•             Port Equipment

1. Handling equipment to increase container-handling capacity at Ngqura from current 750 000 TEUs per annum to 1,5 million TEUs;
2. Took delivery of seven  tandem lift cranes for Durban Container Terminal; and
3. Bought one ship loader and one ship unloader for handling dry bulk at the Port of Richards Bay.

During the release of its results Transnet re-iterated that it is using its capital investment programme to accelerate its commitment to advancing South Africa’s developmental objectives which include various aspects of Broad-Based Black Economic Empowerment, supplier development – especially the localisation of production for imported equipment – job creation and skills development.