Transnet Reports Strong Revenue Growth and Moves Toward Long-Term Profitability

South Africa’s state-owned freight logistics giant, Transnet, has reported a significant turnaround in its financial performance for the year ended 31 March 2025. The company announced that revenue grew to R82.7 billion, representing a 7.8% increase compared to the previous year.

Revenue Growth and Key Drivers

The improvement is attributed mainly to better performance in the rail business, supported by the Recovery Plan. Tariff increases, coupled with higher volumes in automotive and rail operations, bolstered earnings. However, this was slightly offset by weaker pipeline and container volumes.

Transnet also managed to narrow its net loss by 73.7%, reducing it to R1.9 billion. The company said this milestone highlights the effectiveness of its strategic initiatives and reflects progress in addressing operational inefficiencies that have weighed on its performance in recent years.

Investment in Infrastructure

Capital expenditure surged from R16.9 billion to R24 billion, underscoring Transnet’s focus on modernising and expanding South Africa’s freight logistics infrastructure. The company is prioritising improvements in rolling stock availability, rail infrastructure maintenance, and replenishment of critical port equipment to reduce congestion and improve turnaround times.

Key investment areas include:

• Acquisition of critical spares to boost maintenance.

• Modernisation of port equipment across all major terminals.

• Expansion of rail corridor capacity to enhance throughput.

• Deployment of digital systems to increase efficiency and service predictability.

Reinvent for Growth Strategy

The Reinvent for Growth Strategy marks a shift from recovery to long-term transformation. It places customers, partners, and South Africa’s broader economy at the centre of Transnet’s mission.

The strategy is aligned with the Freight Logistics Roadmap, and its major reforms include:

• Establishment of the Transnet Rail Infrastructure Manager.

• Publication of the Final Network Statement.

• Launch of the Slot Application Process for private operators.

• Container terminal development through Private Sector Participation (PSP).

Private partnerships remain crucial to Transnet’s plan, enabling agility, competitiveness, and enhanced service delivery.

Strengthening Financial Stability

Transnet highlighted that improved cash generation, disciplined capital management, and access to the government guarantee facility provide the stability needed to sustain recovery. These factors will also help attract private investment and support South Africa’s ambitions to strengthen its global trade competitiveness.

Looking Ahead: G20 Presidency and Global Positioning

The company’s long-term vision ties into South Africa’s broader economic aspirations, especially as the country hosts the G20 Presidency (December 2024–November 2025) under the theme “Solidarity, Equality, Sustainability.”

By stabilising freight corridors, modernising ports, and opening opportunities for private investment, Transnet says it is positioning South Africa as a competitive trade hub capable of unlocking new opportunities during this critical period.

Outlook for 2025/26

In the upcoming financial year, Transnet’s focus will be on:

• Boosting rail volumes and port throughput.

• Strengthening financial sustainability.

• Embedding accountability and performance monitoring.

• Driving customer-centric projects to improve efficiency on strategic corridors.

Transnet said its improved financial performance lays a strong foundation for growth, transformation, and contribution to the national economy.

For the full presentation, Transnet has made the report available at this link.