Johannesburg: Transnet has reported a profit of R4.6 billion for the financial year ending 31 March 2026, a significant turnaround from the R1.9 billion net loss recorded in the previous year. The State-owned freight logistics company announced its annual financial results on Thursday.
According to South African Government News Agency, revenue increased by 7.1% to R88.6 billion, driven by higher rail and pipeline volumes alongside weighted average tariff increases. The company's earnings before interest, taxes, depreciation, and amortisation (EBITDA) saw a slight increase of 0.7% to R30.9 billion, although the EBITDA margin decreased by 2.2% to 34.8%. Net operating expenses rose by 10.8% to R57.7 billion, while capital investment decreased to R23.3 billion.
Transnet attributed the improved financial performance to increased rail and pipeline volumes, tariff adjustments, and ongoing efforts to enhance operational efficiencies. Rail volumes rose by 4.9% to 167.9 million tonnes, a reflection of successful interventions aimed at improving network reliability and maintenance. The company acknowledged ongoing challenges but noted that operational recovery efforts are yielding measurable results.
A key milestone for Transnet was the implementation of its Private Sector Participation strategy through the Durban Gateway Terminal transaction. This involved Transnet selling a nearly 50% interest in the terminal to International Container Terminal Services Inc. for R10.5 billion, generating a profit of R12.5 billion on disposal. The transaction aims to attract private investment and support the modernisation of South Africa's port infrastructure.
The company has invested R23.3 billion in critical infrastructure and operational improvements, with support from National Treasury's R14.8 billion grant for strategic projects. Transnet continues to advance its recovery and growth agenda, with progress made in implementing the freight logistics reform programme and opening the rail network to third-party operators.
Transnet remains focused on improving operational reliability and increasing freight volumes, guided by its Reinvent for Growth strategy. The organisation expects continued improvements in operational performance and strategic infrastructure projects to bolster South Africa's economic growth and competitiveness.