Transnet has recorded a profit of R4.6 billion for the financial year ended 31 March 2026, marking a contrast to the R1.9 billion net loss recorded in the previous financial year.
The State-owned freight logistics company announced its financial results for the year ended 31 March 2026 on Thursday.
Key highlights from the results are as follows:
- Revenue increased by 7.1% to R88.6 billion, driven by higher rail and pipeline volumes and weighted average tariff increases.
- Reported a profit of R4.6 billion, compared to a loss of R1.9 billion in the previous financial year.
- Earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased by 0.7% to R30.9 billion with the EBITDA margin decreasing by 2.2% to 34.8%.
- Net operating expenses increased by 10.8% to R57.7 billion.
- Capital investment decreased to R23.3 billion, supporting infrastructure renewal, operational recovery and future growth.
“The improvement in financial performance was supported by higher rail and pipeline volumes, tariff adjustments across the business and continued efforts to improve operational efficiencies.
“Rail volumes increased by 4.9% to 167.9 million tonnes, reflecting the positive impact of focused interventions aimed at improving network reliability, maintenance execution and asset availability. Pipeline volumes also recorded growth during the reporting period,” the company said in a statement.
Transnet acknowledged that challenges remain.
However, the improvements recorded “indicate that Transnet's operational recovery efforts are beginning to deliver measurable results”.
“Importantly, these gains are increasingly being recognised by customers and industry stakeholders. Users of the freight logistics system have acknowledged improvements in rail performance and service delivery, while industry bodies, including the citrus sector, have recognised enhancements in port operations that contributed to improved export performance.
“The operational improvements achieved across the network have also been acknowledged by the Minister of Transport and Cabinet as part of government's broader efforts to restore South Africa's freight logistics system and support economic growth,” the statement read.
Partnership garner results
Transnet noted that a key milestone reached is the implementation of the company’s Private Sector Participation (PSP) strategy through the Durban Gateway Terminal (DGT) transaction.
The strategy supports the “modernisation and long-term competitiveness of South Africa's port system”.
“As part of the transaction, Transnet disposed of a 49.999% interest in DGT to International Container Terminal Services Inc. (ICTSI) for R10.5 billion, with effect from 1 January 2026.
“The transaction generated a profit on disposal of R12.5 billion, including a related fair value adjustment, and strengthened the Group's overall financial performance for the year.
“Transnet retains a 50.001% shareholding in DGT, while management control transferred to ICTSI. The transaction represents an important step in attracting private investment, improving operational performance and supporting the long-term modernisation of South Africa's port infrastructure,” the statement continued.
Towards full recovery
The company emphasised that the encouraging results serve as a platform for ongoing recovery and future growth.
“Transnet invested R23.3 billion during the year in critical infrastructure, equipment renewal and operational improvements.
“The investment programme focused on strengthening the rail network, improving port performance, enhancing asset reliability and increasing operational efficiency across the organisation.
“In addition, National Treasury's approval of R14.8 billion in grant funding through the Budget Facility for Infrastructure [BFI] for strategic rail and port projects is expected to further support infrastructure development, improve network performance and reduce future funding requirements,” the statement read.
Transnet noted that it continues to advance its “recovery and growth agenda while strengthening long-term financial sustainability”.
Progress continues to be made in implementing South Africa’s freight logistics reform programme.
“Progress was made towards the incorporation of the Transnet National Ports Authority [TNPA] as a wholly owned subsidiary, while the accounting separation of Transnet Freight Rail into the Transnet Freight Rail Operating Company [TFR] and the Transnet Rail Infrastructure Manager [TRIM] was completed.
“Progress was also made in opening the rail network to third-party operators. Rail Access Agreements have been concluded with 11 Train Operating Companies , with the first operators expected to commence services during the 2026/27 financial year,” the statement explained.
The company assured that focus remains on improving operational reliability, increasing freight volumes, strengthening customer confidence and creating a safer and more efficient operating environment.
“Guided by the Reinvent for Growth strategy, the organisation will continue to prioritise operational recovery, infrastructure investment, private sector participation, rail reform and financial sustainability.
“Building on the progress achieved during the reporting period, Transnet expects continued improvements in operational performance, increasing participation by private rail operators and the implementation of strategic infrastructure projects to support South Africa's economic growth and competitiveness,” the statement concluded. – SAnews.gov.za
