Price reprieves extended to customers pushed down Transnet’s total earnings 0.3% for all assets in the six months to September.
The state-owned freight and logistics company gave R628m in temporary reprieves to its customers due to "developmental objectives", acting CE Siyabonga Gama said at a briefing in Johannesburg on Monday.
Revenue for the half-year to September rose 1.2% to R32.6bn.
"This was driven largely by (a 12.8%) increase in railed containers and automotive volumes as a result of concerted efforts to shift rail friendly cargo from road to rail," Gama said.
Operating expenses grew 2.3% to R18.7bn. But the company was looking to save R1.8bn due to a moratorium on vacancies, limited overtime and a reduction in consulting costs, Gama said.
Personnel costs rose 7.6% and electricity costs 8.6%, together constituting 68% of total operating expenses.
Despite low growth forecasts, Transnet was in a liquid position and able to proceed with a multibillion rand modernisation programme notwithstanding some contraction within its customer base, Gama said.
However, this affected the group’s expansionary capital spend negatively, which fell 42% year on year from R16.1bn to R9.4bn and continued to impede the implementation of the modernisation strategy.
"We have enough head room, for us to enable us to tap local and international markets if we are going to need to borrow. We are in a very strong and liquid position as we navigate through this period," Gama said.
Year-on-year coal volumes moved increased marginally to 2% while iron ore fell 4% due to lower commodity prices.
Transnet’s general freight business was static, despite a decrease in 19.2% for steel and cement.
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