Transnet Unveils Recovery Plan After R1.6 Billion Loss, SA Stunned: “Corruption Cartel”

• Transnet reported a loss of R1.6 billion for six months attributing it to declining rail, port, and pipeline volumes
• The company said the lower volumes, especially at Transnet Freight Rail, were impacted by several operational challenges
• During the challenging times, citizens expressed their worries about the company's direction

JOHANNESBURG - Transnet has announced a financial setback, reporting a loss of R1.6 billion for the six months leading up to 30 September.

The troubled state-owned company linked this downturn to a decline in rail, port, and pipeline volumes, reported SABCNews.

The logistics giant emphasised operational challenges, with Transnet Freight Rail taking a substantial hit.

Issues plaguing Transnet

Various issues, including collisions, community unrest along the coal line, cable theft, derailments, equipment challenges, and power outages, contributed to lower volumes.

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Rail volumes witnessed a 7.2% decrease, while petroleum and container volumes were down 7.2% and 1.8%, respectively.

Adding to the woes, net operating expenses surged 9.5% to just over R25 billion. This increase is linked to electricity tariff hikes, rising labour costs, and heightened security expenses.

Transnet's recovery plan

Despite the grim financial report, Transnet remains optimistic about the future. The company said there is a Recovery Plan with ongoing initiatives to improve rail and port volumes.

SA weighs on Transnet's problems

As the company navigates through turbulent times, citizens voiced their concerns.

Themba Mofokeng mentioned:

"That's not the real results. The results are an inability and wrong people in management positions."

Bruce Hall commented:

"The volumes have declined because Transnet has been run into the ground by incompetent comrades."

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Donald McDonald stated:

"The corruption cartel that runs this country."

Innosa Inno wrote:

"That's why there's lots of trucks on the roads."

Kagiso Justice added:

"New Dawn. Anything Ramaphosa touches turns into chaos. Much more useless than ever before."

Transnet aims to clear Durban port backlog by 2024

In a related article, Briefly News reported that Transnet plans to clear the backlog of 70,000 containers at its Durban port by 2024.

The current challenge has led to an expected delay of 21 days before anchored containers can be offloaded. The first step involves procuring essential equipment at the port.

Source: Briefly News