TransNamib to take 60% revenue hit
OGONE TLHAGE
State-owned rail operator TransNamib is expected to take a 60% hit on its revenue as the coronavirus outbreak further knocks the economy.
For the 2019/20 financial year, TransNamib reported revenue of N$517 million, its highest in over a decade.
Its road to profitability will however be undone as it starts to see a slowdown in business, spokesperson Abigail Raubenheimer said, with the rail operator standing to lose as much as N$310 million.
“Currently, we believe that we will lose more than 60% of our revenue per month due to the lockdown,” she said.
Raubenheimer would not give any monetary indication of how much TransNamib was expected to lose.
According to her, TransNamib's fortunes were influenced by trends in the global supply chain.
“At this stage, it is difficult to say, as some of our customers have already started to downscale more than a month ago; our business is influenced by the global supply chain,” she said.
Company CEO Johny Smith recently told Namibian Sun's The Evening Review show that the enterprise
was 30 years behind where it
should be.
“There is still a lot to be done,” he said before going into the details of a business plan TransNamib says should steer it to break-even point by 2023.
State-owned rail operator TransNamib is expected to take a 60% hit on its revenue as the coronavirus outbreak further knocks the economy.
For the 2019/20 financial year, TransNamib reported revenue of N$517 million, its highest in over a decade.
Its road to profitability will however be undone as it starts to see a slowdown in business, spokesperson Abigail Raubenheimer said, with the rail operator standing to lose as much as N$310 million.
“Currently, we believe that we will lose more than 60% of our revenue per month due to the lockdown,” she said.
Raubenheimer would not give any monetary indication of how much TransNamib was expected to lose.
According to her, TransNamib's fortunes were influenced by trends in the global supply chain.
“At this stage, it is difficult to say, as some of our customers have already started to downscale more than a month ago; our business is influenced by the global supply chain,” she said.
Company CEO Johny Smith recently told Namibian Sun's The Evening Review show that the enterprise
was 30 years behind where it
should be.
“There is still a lot to be done,” he said before going into the details of a business plan TransNamib says should steer it to break-even point by 2023.
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