Sasol says Transnet is a risk to its business

JOHANNESBURG - Sasol, one of South Africa’s biggest companies, says Transnet is a risk to its business.

READ: Transnet takes Sasol, Total to court to recoup R1.3bn

The global chemicals and energy company says that the dysfunctional rail network and pipeline disruptions had a material impact on its chemical shipments and deliveries to its oil refinery.

In its production and sales update, Sasol says while overall supply-chain performance has improved, Transnet remains a risk to its business.

The company is also still dealing with the implications of the force majeure on the local supply of ammonia by rail, due to a shortage of Transnet railcars.

Sasol says sales revenue from its South African chemicals business for the first quarter were 23 percent lower than in the same period last year.

Meanwhile, export sales remained flat as the operational challenges at Transnet Freight Rail continued to impact on the export market.