Transnet’s financial situation may not improve until late 2022

Listen to this Article Now

With the low national and regional economic prospects and structural issues at Transnet, Transnet group CEO Portia Derby informed Parliament’s Portfolio Committee on Public Enterprises that the state- owned corporation will only be profitable by late 2022.

In the first parliamentary briefing the entity has provided the legislature since the publishing of its annual report and financial statements in October, it was revealed that Transnet had incurred a R8.4 billion net loss for the year ended in March 2021.

Even though Transnet remains the sole SOE that funds its own operation capital, the rail and logistics behemoth is concerned that state capture, prior management, vandalism, and Covid-19 would jeopardize its recovery.

Derby told the committee that in the next years, improved performance and efficiency will be crucial, and that Transnet was still a long way from permanently repairing its financial condition. This was further complicated by vandalism and cable theft, she said.

Story by : Norvisi Mawunyegah