Transnet goes from zero to hero

Transnet has reported a full-year profit for the first time since 2022, as the rail and port authority’s turnaround plan remains on track.

This was revealed in Transnet’s 2026 Annual Report, released on Thursday, 10 September, which revealed an impressive financial comeback.

The state-owned entity (SOE) saw its revenue for 2025/26 rise by 7.1% to R88.56 billion, driven by a recovery in throughput across its core logistics activities.

Transnet also benefited from increased rail and pipeline volumes and favourable tariff adjustments across key business units, particularly Freight Rail and Port Terminals.

These factors, along with a strategic once-off asset transaction involving the disposal of Transnet’s interest in the Durban Container Terminal at the Port of Durban, led to Transnet’s return to profitability.

Transnet reported a profit of R4.6 billion, which reflects a substantial improvement from the R1.9 billion loss it recorded for 2024/25.

While the once-off transaction and tariff adjustment played a role, much of this turnaround is also attributable to Transnet’s improved operational performance.

Under CEO Michelle Phillips, Transnet has been implementing a recovery strategy since October 2023 to address its rail and port deficiencies, declining freight volumes, and financial distress.

This strategy has now started to bear fruit for Transnet, with 2025/26 marking its first profit since 2022/23.

“Transnet reinforced its focus on execution and integration across its Operating Divisions,” Phillips said in the Annual Report.

“Improved coordination across rail, ports and pipelines supported a more integrated approach to logistics delivery.” 

“Progress in resolving legacy challenges has also contributed to a more stable environment.” 

She explained that, while risks remain, the business’s underlying performance has strengthened, providing a more resilient foundation.

The impact of Transnet’s turnaround plan could already be seen in the 2024/25 financial year, when the utility’s full-year loss narrowed from R7.3 billion to R1.9 billion.

It should be noted that, in addition to operational improvements, Transnet’s recovery has also been supported by capital injections from the National Treasury.

In December 2023, the utility was granted a R47 billion financial guarantee by the National Treasury and the Department of Public Enterprises.

Another R51 billion guarantee was awarded in May 2025, with R41 billion allocated to capital expenditure and loan redemptions, and R10 billion for short-term liquidity.

In July 2025, the government announced further plans to support Transnet by expanding potential guarantee capacity up to R94.8 billion.

Transnet’s improved financial standing is evident in the graphs below, which reflect the SOE’s revenue and profit from 2021/22 to 2025/26.

Transnet financial performance