3rd QUARTER PERFORMANCE 2024-2025
INTRODUCTION:
Overall, our year-to-date 3 rd Quarter volumes performance is 13.8% (-845 450 tons) less than the year-to-date budget. Our accrual performance from April to December 2024 was 5,285,319 tons against budgeted tons of 6,130,769 for the same period. Of note during the same period last year (2023/24) our performance was at 5,537, 498 tons.
Performance analysis
- Bulk sugar: Performed extremely well, we have exceeded the annual budget by 25,977 tons. Actual performance is at 87,807 tons. The good performance emanates from adequate resourcing which lead to efficient service.
- Timber is also performing well; we are slightly above year to date budget 658 tons. 48,851 tons have moved thus far. Timber performance is projected to be very good even on the fourth quarter since we have managed to get a new client.
- Fuel: we performed poorly on this commodity mainly because of low orders from the client due to fuel quota from Government, we are currently hauling two trains a month instead of four.
- Wheat: We are pleased to report that wheat is back, we stated hauling it in December 2024. The projections are two trains a month.
- ICD: overall the performance for containerised cargo was below budget by 25.8% (26,570 tons). This emanates from the poor performance in the following:
- Matsapha imports (-5,167 tons): Less import trains
- Canned fruits (-2,355 tons): Less exports trains
- Mpaka bagged sugar (-22,725 tons): Absence of warehouse and loading bay
- Mpaka Ethanol (-5,642 tons): Increase in tariffs for alcoholic products,
- Transit traffic: Performed 14.2% below budget mainly because of poor performance in rock phosphate and intermodal coal.
- Rock phosphate performance was affected by derailments, tippler breakdowns, and wet cargo. Hopefully, the next quarter will see improvements and more stability.
- Intermodal coal is affected by the adverse fluctuation in world commodity prices which then renders the model not favourable for mines much far way from Eswatini.
| Commodity | 2024/25 Budget (tons) | 2024/25 Actuals (tons) | Variance Actual/Budget (Value) | Variance Actual/Budget (%) |
|---|---|---|---|---|
| EXPORTS TOTAL | 110,023 | 136,658 | 26,635 | 24.2 |
| Sugar | 61,830 | 87,807 | 25,977 | 42.0 |
| Timber | 48,193 | 48,851 | 658 | 1.4 |
| IMPORTS TOTAL | 35,281 | 24,121 | -11,160 | -31.6 |
| POL/TC | 35,281 | 22,565 | -12,716 | -36.0 |
| Wheat | 0 | 1,556 | 1,556 | 100.0 |
| I.C.D | 103,155 | 76,585 | -26,570 | -25.8 |
| Matsapha Imports | 29,175 | 24,008 | -5,167 | -17.7 |
| Other Matsapha Exports | 24,066 | 27,141 | 3,075 | 12.8 |
| Bagged Sugar Matsapha | 9,900 | 16,144 | 6,244 | 63.1 |
| Canned Fruit Matsapha | 4,114 | 1,759 | -2,355 | -57.2 |
| Bagged Sugar Mpaka | 29,700 | 6,975 | -22,725 | -76.5 |
| Ethanol Mpaka | 6,200 | 558 | -5,642 | -91.0 |
| TRANSIT TRAFFIC | 5,882,310 | 5,047,955 | -834,355 | -14.2 |
| Rock Phosphate | 991,620 | 843,696 | -147,924 | -14.9 |
| Magnetite | 3,447,234 | 3,385,683 | -61,551 | -1.8 |
| Copper Conc. | 4,284 | 3,066 | -1,218 | -28.4 |
| Containers (N/B) | 28,875 | 1,505 | -27,370 | -94.8 |
| Containers (S/B) | 32,830 | 8,085 | -24,745 | -75.4 |
| Coal (Intermodal) | 1,311,553 | 758,082 | -553,471 | -42.2 |
| Fuel | 42,058 | 40,698 | -1,360 | -3.2 |
| Sulphur | 22,890 | 5,040 | -17,850 | -78.0 |
| TOTAL | 6,130,769 | 5,285,319 | -845,450 | -13.8 |
- Passenger/Tourist Trains – Revenue generated from passenger trains was E1,291,830. We are indeed on the rightful track of attaining our yearly target of E1.8 million.
- Strategic Initiatives
- – Securing new bulk clients (IPP, Puma, Shiselweni forest, Premier)
- – Setting up of inhouse clearing and forwarding unit has started, we are hopeful that before the end of the financial year the unit will be up and running.
- – Engaging TFR for seamless service – TFR was successfully engaged to run their trains to Phuzumoya and back to Richardsbay seamlessly.
- – Operationalize Mpaka ICD – Loading at Mpaka ICD has started, we are looking forward to a much great improvement on the last quarter as we will be hauling volumes to the COMESA countries
- Operational Lowlights
- – Fluctuation of commodity prices especially coal prices, affecting the viability of the intermodal coal project. There is an urgent need to cascade the intermodal to other commodities.
- – Shortage of rolling stock (wagons and locomotives)
- Future Outlook
- – Procure TFR B-Fleet urgently, to support existing business, additional business and seamless operation.
- – Participate in running trains on TFR lines, (TFR is in the process of allowing third parties to operate in their infrastructure).
- – Review asset acquisition strategy, we need to be adequately resourced with rolling stock to annex additional business.
- – Digitize customer tracking and customer pipeline matrix for easy tracking of customers.
- – Develop and digitize customer relationship management.
- – Increase customer base from existing customers.
- – Capture bagged sugar that is currently on road to Maputo
- – Acquire new coal client for Matsapha 1
- – Construction of warehouse at Mpaka ICD is completed to retain sugar client
- – The KaDake line resuscitation present a great opportunity of ESR to participate in the economic growth of the country and at the same time adding to sustainability of the organisation.
- Conclusion:
Our performance thus far has faced multiple operational disruptions, impacting overall performance and revenue. However, there were notable successes in bulk exports due to strategic adjustments and adequate supply management. We remain optimistic for significant improvements in the upcoming quarter.
Leave a Reply
Want to join the discussion?Feel free to contribute!