Transnet Cuts Losses to R1.9 Billion on Higher Rail Volumes and Revenue Growth
State-owned logistics giant Transnet has reported a significantly reduced loss of R1.9 billion for the financial year ending March 2025, compared to a R7.3 billion loss in the previous year.
The debt-laden group has long battled to provide reliable freight rail and port services, hampered by equipment shortages and a backlog of critical maintenance.
These shortcomings have hit South Africa’s mining exporters hard, with companies such as Kumba Iron Ore and Thungela Resources forced to scale back production due to rail bottlenecks.
Transnet’s revenue rose 7.8% to R82.7 billion in the 2024/25 financial year, supported by tariff hikes and modest improvements in rail volumes.
The company also reported progress on cost containment, with net operating expenses falling 4.9% to R52.1 billion, driven in part by fewer third-party claims.
Despite narrowing its losses, Transnet remains under pressure to restore efficiency in South Africa’s logistics chain.
The performance of its rail and port divisions will be critical not only for the company’s financial recovery but also for the wider economy, which depends on reliable commodity exports.
