Critical state-owned company loses R1.6 billion to crime

Transnet has reported that copper cable theft remains one of the most prevalent and damaging crimes it faces, with security incidents as a whole setting the logistics utility back R1.59 billion in the 2024/25 financial year.

Notably, this is a 21% decrease from the previous year, with security incidents having dropped from 8,234 to 6,345.

Transnet attributed this to its security interventions, which are gaining traction across all of the utility’s operating divisions.

These interventions are considered critical in implementing reforms at the utility’s rail operations, with derailments, locomotive availability, rail network constraints and theft the primary drivers of rail volume losses.

This was revealed in Transnet’s recent presentation to the Standing Committee on Public Accounts on 24 March 2026.

In this presentation, Transnet reported positive developments in the implementation of its Recovery Plan, particularly with regard to rail volumes.

Between the 2017/18 and 2022/23 financial years, the utility saw a nearly 34% decline in rail volumes. Since the adoption of its Recovery Plan in the 2023/24 financial year, rail volumes have increased by over 5%.

While still below levels seen in 2017/18, this marks a significant improvement for the embattled rail operator.

However, Transnet noted that derailments, locomotive availability, rail network constraints, and theft continue to be the primary drivers of rail volume losses, leading to an 80% decrease in volumes. Security incidents alone led to an 8.7% loss of volumes.

To address the theft aspect, Transnet has implemented various security initiatives, including strengthening its outsourced security capabilities and introducing a security threat and risk assessment tool to standardise its approach.

“Transnet has strengthened its Security Strategy through increased deployment along high-risk corridors, enhanced surveillance technologies and improved asset protection measures,” the utility said.

These and other measures saw Transnet record a 23% decline in security incidents and a 21% decrease in revenue losses due to security incidents.

The graph below shows the improvement in Transnet’s rail volumes since the adoption of the Recovery Plan.

South Africa’s copper black market

For the 2024/25 financial year, Transnet’s revenue losses totalled R1.59 billion, with the utility highlighting the impact of copper cable theft, in particular.

“Copper cable theft remains the most prevalent and damaging crime, often involving infrastructure destruction and environmental hazards,” it said.

“Ongoing monitoring is essential as these incidents continue to impact business performance.”

The theft of copper cables and other metals has been a thorn in South Africa’s side for years.

Research commissioned by the Department of Trade, Industry and Competition has estimated the economic damage of copper theft alone at more than R45 billion annually.

According to Statistics South Africa, these criminal acts take a severe toll on public infrastructure, the economy and impact citizens’ quality of life. 

“The criminal theft of electricity cables, power pylons, railway tracks, traffic lights and manhole covers has reached alarming levels,” the agency said. 

“The economic and other costs of metals theft are enormous. For example, copper theft constitutes a serious threat to our national infrastructure, undermining the country’s low-cost rail advantage and the performance of our electrical grids.”

A 2023 report by the Global Initiative Against Transnational Organised Crime explained that the theft of copper from already ailing infrastructure severely affects the capacity and operations of state-owned entities and municipalities.

“In the transport and communications sectors, copper cable theft has damaged and disrupted railway lines, trains, telecommunications and internet services,” the report stated. 

While Transnet has made strides in reducing security incidents, this has come at a price.

In 2024/25, the utility’s security costs increased by 17.2%, with Transnet spending R3.3 billion on this line item alone, which now constitutes 6% of its operating expenses.

The graph below shows the volume losses Transnet experienced in 2024/25, in part due to security incidents.