Home | Business | RAILWAYS LOSS WIDENS TO E13.7M

RAILWAYS LOSS WIDENS TO E13.7M

30/11/2021 08:39:00 BY ASHMOND NZIMA

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MBABANE – One of the country’s major parastatals in the transport sector, Eswatini Railways (ESR), is said to have suffered a major loss in the period April to June this year.

In the Public Enterprises Unit (PEU) report for the first quarter of the current financial year (April to June), it reported that ESR suffered a loss of E13.77 million. It was an increase of about E3 million when compared to a loss of E10.66 million in the previous quarter. The PEU monitors the performance of the designated Category ‘A’ Public Enterprises and further provides technical advice on their operations and policy management. ESR is a parastatal under the ministry of Public Works and Transport.

According to the report, total revenue was recorded at a reduced E62.17 million when compared to the E63.40 million of the last quarter. Total expenditure was recorded at E75.94 million. The figures were at E74.06 million in the prior quarter. COVID-19 is feared to have partly contributed to the loss. There was no revenue generated from tourist trains due to the effect of the COVID-19 pandemic. Meanwhile, imports traffic recorded a total of 0.035 metric tonnes compared to 0.038 metric tonnes in prior quarter and actual revenue earned was E6.44 million. At least E6.64m had been earned in the prior quarter.

Total

“A total of 0.024 metric tonnes of cargo was exported compared to 0.08 metric tonnes last quarter. “Revenue earned from export traffic was E3.17 million compared to E1.37 million in the previous quarter,” highlighted the report. Inclusive in the imports/exports revenue is income from the Inland Container Depot (ICD) which recorded a total of 0.014 metric tonnes compared to 0.022 metric tonnes in last quarter. “A total of 1.32 metric tonnes were transported in transit traffic compared to 1.37 metric tonnes last quarter. Actual revenue earned was E45.44 million compared to E52.98 million last quarter,” highlighted the report. Despite the setback financially, there were no major derailments in the period under review except social unrest which took place both here in Eswatini and South Africa, forcing traffic to be diverted to Maputo. Cable theft incidents were also reported within Transnet Freight Rail (TFR) network leading to a standstill while TFR was fixing the lines.

Disclosed

The report, on the other hand, disclosed developments regarding the Matsapha ICD Phase II and Phase III Engineering Designs – an architect is said to have been appointed to prepare preliminary designs of port buildings as well as conducting a feasibility study of the proposed development. The Eswatini Rail Link- Sidvokodvo to Phuzumoya upgrades detailed engineering designs for the railway line upgrade had reached the final stages and the consultant was preparing the final report. With regard to the multi-billion Emalangeni Eswatini Rail Link Project , in the quarter under review, there was a successful conclusion of negotiations with De Souza for the acquisition of land for permanent servitude as well as temporary land take for project purposes.

The company, however, was yet to conclude the two remaining negotiations with Tibiyo/Montigny and the Ministry of Commerce, Industry and Trade.
When it comes to its outlook, ESR looks to forward a request to the Republic of China on Taiwan for the expansion of the Dry Port implementation and publicise expression of interest to help solicit Public Private Partnerships (PPPs) for the implementation of projects (sugar spur lines, Matsapha ICD expansion and Mpaka ICD).

Meanwhile, another parastatal that incurred a loss was the Eswatini Cotton Board. The loss suffered was calculated at E0.81 million. It was a downgrade from profit of E2.02 million realised in the previous quarter. “It is important to point out that the loss was as a result of considering cost of sales which were more than the income realised. The major source of income came from levies, woolpack rentals, facility rental, house rental, bank interest, proceeds from asset disposal and general company trading,” reads the report. The Board, on the other hand, looks forward to supporting farmers on cotton picking, buying cotton, distributing farm inputs and packaging material, among other things.