-
File image of Transnet train.
Transnet has reported a R1.9 billion in profit loss for the financial year ending March 2025. This is 74% lower than what it reported last year when it posted a loss of R7.3 billion.
The logistics giant says the recovery plan is taking hold and yielding much improvement for the company.
Transnet released its results in Johannesburg earlier today. While an improvement is noted, the company says it is not yet out of the woods as it still battles high debt and crime on its infrastructure.
Transnet says its improvement is attributable to improved rail volumes.
In this reporting period, rail volumes were 5.5% higher at 160.1 million tonnes from 151.7 million tonnes.
Revenue for the financial year increased 7.8%, while earnings before interest, taxation, depreciation and amortisation (EBITDA) shot up 39.4% to R30.6 billion.
Today, Transnet presented its Annual Financial Results at the Johannesburg Stock Exchange (JSE), Sandton.
Our results for the year ended 31 March 2025 show significant improvement in the operating environment, particularly in the rail business, owing to the implementation of the… pic.twitter.com/NtVIH5MI5n
— Transnet SOC Ltd (@follow_transnet) September 5, 2025
The logistics giant launched the recovery plan in late 2023 that includes initiatives that drive volume recovery, improving rail and operations as well as collaborating with the private sector.
Despite the improvements, the logistics giant is still faced with major debt burden that now sits at R144.7 billion.
So far, state guarantees to alleviate its financial burdens have assisted it to improve.
Since December 2023, Transnet has received three significant government bailouts totalling R192.8 million at stabilising its operations and managing its debt burden
Transnet says the most transformative development is its move toward private sector participation in its rail operations.
Eleven out of 25 applicants had been selected to operate on key rail corridors through Transnet Rail Infrastructure Manager; the newly established interim Operating Division.
The “open access” model will allow private train operating companies to run trains on Transnet’s infrastructure for an access fee, while Transnet retained ownership of tracks, signals, and maintenance responsibilities.
The selected operators are expected to add up to 20 million tons of capacity annually starting from the 2026/27 financial year.
