S.Africa's Transnet says revenues jump 20%

JOHANNESBURG (AFP) - South Africa's state-owned transport and logistics company Transnet reported on Tuesday a 20.9-percent rise in revenue owing to record freight volumes.

Revenue increased to 45.9 billion rand ($5.6 billion), putting the firm on a sound financial footing, said CEO Brian Molefe.

"Our financial results were much better than expected. This shows that the company is moving forward despite challenges in the global economic sector," Molefe said.

A record 201 million tons of freight was shifted during the financial year ended March 31, in a 10.4 percent increase compared to the previous year.

The firm, which has been in the past dogged by leadership problems, this year unveiled a $35.6 billion scheme to develop railways, sea ports and pipelines to expand freight transport and ease bottlenecks that hamper mining exports.

The expansion will also make Transnet Freight Rail the world's fifth-biggest rail freight company.

"The operating division, which recently completed the manufacturing of 200 wagons for Rio Tinto's Mozambique operations, offers the best opportunities for us to expand into the rest of the African continent," the company said.

Also in the pipeline is the construction of a $2.0 billion railway through neighbouring Swaziland to create a new link to Indian Ocean ports.

The firm owns and operate the country's 3,800 kilometre long petroleum and gas infrastructure and ports, and is often criticised for its market dominance.