Transnet aims to achieve capital spend of R229,2 billion
over the Market Demand Strategy (MDS) period (between R340 billion and R380 billion to be invested over the next
10 years) to increase capacity across all commodities
We measure the success of our performance based on the expansion of rail, port and pipelines infrastructure, and the increase of capacity to meet validated market demand.
Key to achieving the MDS is achieving specific financial key performance indicators (KPIs) that relate to our financial agility and sustainability. The success of the MDS further relies on significant productivity and operational efficiency improvements. The Shareholder’s Compact contains the KPIs that the Board of Directors and the Shareholder Representative agree on, and serves as the performance monitoring framework for the Company.
We continued to execute the MDS, with concerted efforts to manage costs, improve operational efficiency and rephase and optimise capital investments in response to a muted economy.
The year was characterised by persisting challenges in the economic environment, with depressed commodity prices and low domestic economic growth. This resulted in lower-than-budgeted customer demand for freight services, coupled with the realisation of below-budget Rand per ton prices.
Notwithstanding economic challenges, Transnet’s revenue for the year increased by 5,3% to R65,5 billion (2016: R62,2 billion), driven by a 4,9% increase in general freight to 88,1 mt (2016: 84,0 mt) and a 2,4% increase in export coal railed volumes.