Speaking at the during the result of Transnet’s annual results, Radebe said “the development of Coega and the extension of facilities at East London Harbour are critical areas of focus for the current financial year, and we do not expect any delays in the implementation of these important projects in the Eastern Cape.” Pointing to the full electrification of the line between Gauteng and East London, Radebe said Spoornet had embarked on an “ambitious programme to improve electrical infrastructure, rolling stock, locomotives, signals, stations and general improvements to strategic network development.” The electrification of the line is critical to the success of the East London IDZ and the expansion of the city’s port, which is a major vehicle terminal. According to Radebe, Transnet has budgeted more than R45-billion on infrastructural development over the next 10 years – making it one of the biggest investment drives by a local parastatal in recent years. “The time has come to address the infrastructure backlog, estimated by some to be about R16-billion, accumulated over 20-odd years,” he said. Transnet’s results for the 12 months to 31 March 2002, showed a 13 per cent increase in group turnover, to R35.8 billion (2001: R31.7 billion). Operating profit for the year increased by 30% to almost R2.6 billion (2001: R1.9 billion). ``Our policy of zero tolerance towards corruption is being felt in all sections of the company. As a company, we have embraced the requirements of King II and will ensure full compliance with this code in the 2003 financial year," said Transnet chairman Dr Bongani Khumalo. “However, profit generation is only one criteria against which Transnet's performance should be evaluated. As a state-owned enterprise, Transnet also strives to achieve market-related returns through the optimum use of its assets, while supporting government in reaching its macroeconomic objectives and its drive to restructure state assets,” added Mafika Mkwanazi, Group Chief Executive Officer of Transnet. Commenting on divisional results, Transnet Chief Financial Officer Sindi Mabaso said Spoornet had a commendable year in a challenging environment, more than doubling net profit to R778 million. National Ports Authority (NPA) recorded increases in both values and volumes of cargos handled, countering the impact of limited tariff increases. SAA weathered the effects of 11 September and achieved better-than-expected results, posting net profit of R2.4 billion. Mkwanazi said a critical component of Transnet's strategy was its support for black economic empowerment and transformation. In this regard, Transnet spent R3.4 billion towards BEE in the last financial year. “Transformation targets are supported by appropriate policies and by retention, recruitment and training strategies for our own people,” he said.