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In a recent presentation to the standing committee on public accounts (Scopa) , the Auditor General of South Africa noted that the utility’s net cash inflows for the year from operating activities were R14 billion, compared with R22 billion in the 2023 financial year.
Transnet is falling well below its target of shifting 200 million to 220 million tonnes of freight a year, at which point — it is estimated — it will begin to make a meaningful contribution to the economy. Its current target is 170 million tonnes a year.
The auditor general has confirmed doubts about public logistics company Transnet’s ability to remain a going concern, saying its reliance on expensive debt for operating cash was unsustainable. In a presentation to the standing committee on public accounts (Scopa) recently, the Auditor General of South Africa noted that the utility’s net cash inflows for the year from operating activities were R14 billion, compared with R22 billion in the 2023 financial year.
But as matters stand, Transnet is falling well below its target of shifting 200 million to 220 million tonnes of freight a year, at which point — it is estimated — it will begin to make a meaningful contribution to the economy. Its current target is 170 million tonnes a year.
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In the past financial year, volumes increased 1.5% to 151 million tonnes, compared with the previous year, and revenue was up 12%, according to results released on Tuesday. The company posted a loss of R 7.3 billion for the financial year, worse than the loss of R 5.7 billion for 2023.
