Picture: for illustration purposes
In a daring attempt to bounce back from financial doldrums, South Africa's largest freight company, Transnet, has detailed a magnificent recovery plan. With sights set on significant growth in the next two years, the plan includes increasing their revenue from R78bn to an impressive R91bn, a major surge in earnings that forecasts a R37bn peak, and an optimistic flip of a daunting R5.7bn net loss into a promising profit trajectory of R5.1bn.
Beyond a revenue and profit revamp, Transnet also plans on investing heavily in the rail network, rolling stock, and port equipment sector. Capital investments are projected to rise from R17.9bn to a whopping R28.2bn by the year 2025.
These bold initiatives, however, hinge on a pressing need for financial support. Transnet has proposed a R100bn bailout, appealing to the South African government for backing. The requested financial aid package sent to the Treasury also includes the option of a R47bn equity injection or a subordinated loan that could be transformed into equity, granted the company manifests improvement in its functioning. An inceptive cash boost of R3.4bn is required before March of the coming year to kickstart these ameliorative operations.