By Reuters
South African state-owned logistics group Transnet on Tuesday reported a wider loss of 2.2 billion rand ($117.48 million) in the six months to Sept. 30 on higher costs and operational challenges.
Transnet made a loss of 1.6 billion rand during the same period last year.
The debt-saddled company has struggled to provide adequate freight rail and port services for years due to equipment shortages and maintenance backlogs.
Chronic underperformance has stifled exports of key commodities such as coal and iron ore, crimping economic growth in Africa’s most industrialised nation.
The logistics firm said its revenue rose 6% to 41.5 billion rand in the six months thanks to tariff increases in its rail, port and pipeline businesses.
However, higher payroll, security and maintenance expenses drove costs up 10.2% to 27.9 billion rand.
Reuters
