ESWATINI RAILWAYS RECORDS 13% DECLINE IN VOLUME PERFORMANCE

MBABANE - Eswatini Railways (ESR) continues to navigate the complexities of the transport and logistics sector as the year 2024/25 progresses. Despite facing several operational and economic hurdles, the organisation has shown resilience and improvement in various areas compared to the previous financial year. However, the overall year-to-date third-quarter volumes remain 13.8 per cent below the budgeted target, marking a deficit of 845 450 tonnes.According to the ESR performance review carried out in the organisation’s annual magazine, from April to December 2024, actual volumes stood at 5 285 319 tonnes against a budgeted 6 130 769 tonnes.

Although this figure falls short of projections, it reflects a notable increase compared to the 5 537 498 tonnes recorded during the same period in 2023/24. ESR Chief Executive Officer (CEO) Nixon Dlamini expressed optimism, stating that the railway company is on an upward trajectory and remains committed to achieving its targets by the close of the financial year. ESR reported that the transportation of bulk sugar performed exceptionally well, surpassing the annual budget by 25 977 tonnes.

The actual volume transported was 87 807 tonnes. The success in this sector is attributed to efficient resource allocation, which has significantly enhanced service delivery. This growth underscores the effectiveness of operational strategies put in place to maximise efficiency. Timber transportation has also performed well, exceeding the year-to-date budget by 658 tonnes, bringing total volumes to 48 851 tonnes. The positive outlook for this commodity is expected to continue into the fourth quarter, particularly with the acquisition of a new client, which will further boost volumes.

Transportation

Fuel transportation, on the other hand, has underperformed due to reduced orders from clients. This decline is largely due to government-imposed fuel quotas, which have limited the number of train shipments. Currently, only two fuel trains operate per month, as opposed to the four that were initially projected. In a welcome development, wheat transportation has resumed, with ESR beginning haulage operations in December 2024. Moving forward, projections indicate that two trains per month will be allocated to wheat transport, marking a steady resurgence for this commodity.Despite gains in some sectors, the overall performance of containerised cargo fell short of budgeted expectations, registering a 25.8 per cent deficit (26 570 tonnes).

Post your comment

Your name:

Your e-mail address:

Add your comments:

Please enter the code you see in the image:

Image:

Code: