It is now three and a half years since Maria Ramos, CEO of Transnet – South Africa’s state-owned transport company – set about transforming the organisation. This process has involved a hiving off of various non-core assets to focus the company on its core responsibilities as well as initiating an investment programme to upgrade the country’s long neglected transport infrastructure.
Based on Transnet’s recent financial results, it seems this process is reaping rewards, and the company is poised for growth.
Figures released in November for the six months ended 30 September show revenues up 10% to R15.7bn (US$2.2bn), with Editda up 8% to R6.4bn, while capital expenditure – the key pillar in Transnet’s growth – has surged ahead 59% to R6.8bn.
Commenting on the results, Ramos said: "The figures provide clear evidence that the turnaround is largely complete and that the new Transnet we’ve built in the last three-and-a-half years is positioned for further growth that is fuelled by volume-based revenue increases instead of reliance on price increases. Continuous re-engineering of the business should place Transnet at the centre of the country’s growth drive."
As well as marking the end of Transnet’s structural transformation, 2007 also saw a rebranding from a multi-brand organisation to a single, overarching Transnet brand. The company’s five divisions have now been renamed: Transnet Freight Rail (formerly Spoornet); Transnet Rail Engineering (formerly Transwerk); Transnet National Ports Authority (formerly the National Ports Authority); Transnet Port Terminals (formerly South African Port Operations); and Transnet Pipelines (formerly Petronet).
In a bid to emphasise its commitment to stakeholders, Transnet has also changed its tag line from "delivering on our commitments" to "delivering on our commitment to you". Whether the company will deliver on its promises has yet to be seen.
