Johannesburg, 5 September 2025 – Transnet SOC Ltd has reported significant progress in its turnaround strategy, posting improved financial and operational results for the year ended 31 March 2025. The state-owned freight and logistics giant says its recovery is setting a “solid foundation for sustainable growth” as it shifts from stabilization to long-term transformation.
Financial Performance: Strong Recovery Momentum
Revenue grew 7.8% to R82.7 billion, driven by tariff adjustments and higher volumes in the rail and automotive sectors, although weaker pipeline and container volumes partly offset gains.
Cost management efforts yielded results, with net operating expenses falling 4.9% to R52.1 billion, helping boost EBITDA by 39.4% to R30.6 billion. The company’s EBITDA margin climbed to 37%, reflecting greater operational efficiency.
While Transnet still recorded a net loss of R1.9 billion, this marks a 74% improvement from the R7.3 billion loss in 2024. Management said this sharp narrowing brings the business closer to achieving long-term profitability.
The group also ramped up capital investment, spending R24 billion, a 44.2% increase from last year, to modernise and expand South Africa’s freight logistics infrastructure.
Operational Highlights
Transnet attributes its progress to the implementation of its Recovery Plan, with notable improvements in rail performance and cash generation stability. Key operational priorities included:
- Rail improvements: Focus on rolling stock availability, network reliability, and customer-driven corridor projects.
- Port modernisation: Investments in new equipment and spare parts to enhance turnaround times, reduce congestion, and sustain performance at terminals.
- Digital and operational upgrades: Efforts to improve predictability, service levels, and efficiency across rail, ports, and pipelines.
Reform and Sector Transformation
A central pillar of Transnet’s “Reinvent for Growth Strategy” has been opening its networks to private sector collaboration in line with the Freight Logistics Roadmap (FLR). Major milestones include:
- Establishment of the Transnet Rail Infrastructure Manager (TRIM), separating infrastructure management from operations to enable private train operators.
- Publication of a Final Network Statement with access conditions and fee structures for third-party operators.
- Launch of a slot application process for private train operating companies, which received strong interest from the market.
- Delivery of new tugboats and port equipment, strengthening operations at Durban and East London.
- Appointment of a private operator for a new container terminal at Richards Bay, expected to add 200,000 TEUs in capacity annually.
Outlook: From Recovery to Growth
Transnet says its improved revenue, disciplined cost management, and strong investment pipeline position it for sustainable profitability. The company will focus on boosting rail volumes, increasing port throughput, and embedding accountability measures in 2026.
With South Africa set to host the G20 Summit, Transnet emphasised that modernising freight corridors and ports, while opening doors for private investment, is crucial to unlocking trade and enhancing competitiveness.
“When Transnet works, South Africa thrives,” the company stated, highlighting its role as a catalyst for economic growth.
