South Africa's state-owned logistics firm Transnet on Friday reported a R1.6 billion loss in the six months to September 30 on the back of declining rail, port and pipeline volumes amid higher costs.
Transnet made a R159 million profit during the same period last year.
Although its revenue rose 8.6% to R39.2bn in the six months thanks to tariff increases for its services, costs rose 9.5% to R25.3bn due to higher payroll, electricity and security expenses.
Transnet has struggled to provide adequate freight rail and port services in South Africa due to equipment shortages and maintenance backlogs after years of under-investment.
On December1 the South African government, Transnet's sole shareholder, said it would inject R47bn to help the firm meet its immediate debt obligations.
Transnet has debts of R130bn and has seen freight volumes decline to 150 million metric tons in financial year 2022/23 from 226 million tons in 2017/18, while reporting port backlogs of as much as three months.
REUTERS