Gayton McKenzie accused of not understanding fashion industry after his meeting with Shein
Fashion designer David Tlale said he doesn’t think Gayton McKenzie understands the complexities of the clothing and textile industry.
Transnet Chairman Andile Sangqu said in an interview on Friday that the plan prioritises the refurbishment of two major rail corridors, including an 861-kilometre iron ore line from Sishen in the Northern Cape to Saldanha Bay on the western coast.
The yield on the company’s dollar debt due in 2028 dropped 6 basis points to 6.05% by 4:10 p.m. in Johannesburg.
Sangqu was speaking after the company announced it narrowed its full-year loss to R1.9 billion in the year through March, from R7.3 billion in the prior period, as it boosted volumes by 11 million tons to 160 million tons and increased revenue.
The company will also focus on clearing its maintenance backlog, strengthening its engineering unit, replacing and repairing locomotives and port equipment, and overhauling its IT infrastructure.
The move is key to readying Transnet for the entry of private sector operators onto its network, part of rail reforms being implemented by the government. On 22 August, authorities shortlisted 11 potential operators.
Transnet’s performance has been hamstrung by years of underinvestment, graft, theft and vandalism — factors that have become a major drag on the country’s economic growth as shipments of coal and iron ore have hit multi-decade lows.
For many years, Sangqu said there’s been too little attention paid to maintenance and track replacement. “This becomes very important as we prepare ourselves for third-party access.”
The projects will be funded through various sources, including revenue generated from Transnet’s own operations, Sangqu said.
Still, the auditor general cautioned in Transnet’s financial statements that weak liquidity, covenant breaches, credit rating downgrades, and persistent operational and legal challenges cast doubt on the group’s ability to continue as a going concern.
Sangqu said he believes the auditor general’s concerns stem largely from balance sheet issues, which will be partly mitigated by government guarantees.
The government in July approved R94.8 billion in guarantees to support Transnet’s turnaround, R48.6 billion of which will be earmarked to ensure the company can cover all its debt redemptions over the next five years.
The support added to a R51 billion guarantee facility that was approved in May.
Transnet expects its R144 billion debt pile to peak at R156 billion before declining to R107 billion by the end of its five-year corporate plan in 2030.
Issued on Daily Investor by Bloomberg | https://dailyinvestor.com/south-africa/100941/transnets-r130-billion-investment-spree/
