The United National Transport Union (UNTU) is delighted that Transnet managed to boost its revenue with 13, 8% to R37, 1 billion.
Yesterday Siyabonga Gama, Transnet Chief Group Executive Officer, announced that this was done by; a 7,9% increase in general freight volumes, a 6,5% increase in export coal railed volumes and a 11,4% increase in railed automotive and container volumes.
“This is fantastic news. A year ago, Transnet only managed to increase its revenue with 1, 2% to R32, 6 billion amidst depressed economic conditions, a weak demand for commodities and manufactured products, which continued to hamper growth in volumes. Transnet warned Trade Unions that forced retrenchments would be on the table if there was not a drastic turn of events.
“UNTU, the majority Union representing 52% of all employees in Transnet, therefore wishes to congratulate Transnet management, but more importantly each hardworking UNTU member who with his or her contributions, changed the course of this ship for good,” says Steve Harris, General Secretary of UNTU.
According to Gama, Freight Rail achieved a record high 37,8mt of export coal while operating cost was contained at R20, 8 billion, contributing to a saving of R2, 2 billion.
Earnings before interest, taxation, depreciation and amortisation (EBITDA) also climbed with 17, 7% to R16, 3 billion.
Over the past year Transnet’s net profit increased by R3, 4 billion, more than 230% higher than the previous year.
Although the economic environment largely remains under pressure, Transnet’s strategy to move ‘rail-friendly’ cargo from road to rail is starting to pay dividends, with the company gaining market share in general freight cargo and coal volumes.
Revenue for the six months of the financial year rose 13, 8% to R37, 1 billion (2016: R32,6 billion) driven by a 7, 9% increase in general freight volumes, a 6, 5% increase in export coal railed volumes and a 11, 4% increase in railed container and automotive volumes. Chrome and manganese volumes performed particularly well, increasing by 19, 2% to 3, 1mt and by 25, 9% to 6, 8mt respectively.
The company’s key measure of profitability – EBITDA improved by 17, 7% to R16, 3 billion. An exceptional improvement was noted in profit from operations after depreciation and amortisation, which rose by 69, 1% to R9, 9 billion compared to R5, 9 billion in the period prior.
One of the questions posed to Gama was why vacancies were not being filled. According to Gama there is no moratorium on the filling of vacancies. “If there is a need, the vacancy should be filled, especially in the safety critical environment.”
Gama also added if the company is doing well, there will be no need for retrenchments. Last week at the Transnet Indaba held at Esselenpark in Tembisa, Johannesburg, Gama said there were no voluntary severance packages on the table. Transnet aims to increase its workforce with 20 000 employees by the year 2022.
Harris says this news makes wage negotiations for the next financial year so much easier as UNTU will once again be looking at a multi-term wage agreement. The wage talks will continue on 6 November 2017.
Issued on behalf of UNTU by Sonja Carstens, Media and Liaison Officer. For UNTU Press Statements phone 082 463 6806 or e-mail sonja@untu.co.za.
