During the financial year under review, Transnet signed the shareholder compact with the government as represented by the Minister. The first part of the shareholder compact focuses on volumes and revenue growth, which Transnet must achieve. the second aspect of the compact requires Transnet to retain its currently strong financial position, which would include not increasing borrowings beyond 50% of the total funding of the company, and ensuring that total interest costs per year must be covered at least three times by the profit earned in that year to ensure that it could continue to attract cost-effective loans from foreign and domestic markets. The third aspect of the compact relates to operational efficiency. Although Transnet recognised that it was often not at world-class levels, it was making progress in this regard.