Transnet’s directors’ fees went from R7.37 million in 2019 to R15.76 million in 2026

Transnet has increased its non-executive directors’ fees by 113.84% over the past seven financial years to R15.76 million. 

These fees have risen while the utility’s performance has deteriorated significantly, hauling less cargo, handling fewer containers, and piping less petroleum than it did seven years ago. 

This was revealed in an analysis of Transnet’s integrated reports from the 2019 financial year through to the 2026 report. 

The latest report was released as part of Transnet’s results presentation on 10 September, where it posted its first profit since 2022. 

This profit is partly due to improved operational performance, but was also boosted by the utility’s disposal of various assets. 

Transnet is currently undergoing a turnaround, with its management team, led by CEO Michelle Phillips, working to overcome the impact of state capture and historical mismanagement. 

The era of state capture devastated the utility, with deliberate procurement failures, widespread corruption, and severe damage to its financial health. 

Transnet’s challenges did not end there, with its operational performance beginning to decline due to a lack of investment in maintaining and upgrading its assets. 

This included infrastructure such as railways and ports, as well as the equipment used throughout its operations. As a result, its efficiency tanked. 

Transnet Freight Rail moved 215.1 million tonnes of rail volume in the 2019 financial year. This plunged to a low of 167.9 million tonnes in 2026. 

This has a serious knock-on effect on South Africa’s economy, resulting in lost export earnings and elevated costs due to goods being transported by road rather than rail. 

Its port operations handled half a million fewer containers in 2026 than in 2019, partly reflecting sluggish demand due to weak economic growth. 

These operations have improved under Phillips, with metrics moving in the right direction. However, they remain far below historic levels. 

All the while, Transnet’s directors’ fees have risen significantly over the past seven financial years, particularly after major changes in 2023. 

In 2023, Transnet significantly restructured its fee payments to board members to align with national public entity guidelines. 

The idea behind higher fees is to make it more appealing to individuals, thereby attracting higher-quality board members and incentivising better work. 

This saw directors’ fees nearly triple from 2023 to 2024, before moderating slightly as Transnet’s operational performance deteriorated. 

Directors’ fees also surged as the new board held numerous special meetings to address executive vacancies and develop the Transnet Recovery Plan. 

In the most recent financial year, Transnet’s directors received an increase in line with inflation. 

Operational performance

Directors’ fees