Transnet Turns to Retailers, Manufacturers as Commodities Falter
- State transport company could enter warehousing, distribution
- Transnet wants to cut its reliance on the mining industry
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South Africa’s state rail and ports operator is considering entering new businesses, including warehousing and pitching its services to retailers and manufacturers, as it seeks to boost income and reduce its reliance on transporting coal and iron ore.
Transnet SOC Ltd. plans to increase the volume of consumer and manufactured goods on its rail lines and may add distribution operations, Chief Executive Officer Siyabonga Gama, 48, said on Wednesday. While more than 70 percent of the utility’s rail business is focused on the mining industry, that will eventually need to drop below half, he said.