Transnet has announced that its revenue performance for the year ended 31 March 2025 has increased by R82.7 billion, which translates to a 7.8% improvement when compared to the previous year.
The State-owned rail, port and pipeline company attributed this growth to significant improvement in the operating environment, particularly in the rail business, owing to the implementation of the Recovery Plan.
“This was driven by weighted average tariff increases as well volume increases in the automotive and rail businesses, but lower pipeline and container volumes partially offset the revenue increase.
“At R1.9 billion, Transnet has narrowed net loss by 73.7%, compared to the prior year, bringing the organisation closer to its goal of long-term profitability.
“This improvement reflects the success of Transnet’s strategic initiatives and demonstrates the positive impact of steps taken to address operational challenges,” Transnet said on Friday.
Transnet said the increase in capital expenditure, from R16.9 billion to R24 billion, signifies its focus on expanding and modernising the country’s freight logistics infrastructure.
As Transnet executes the Reinvent for Growth Strategy, the focus shifts from operational recovery to transformation and long-term, sustainable growth.
“This is a shift in strategy and mindset, one that places our customers, partners and the country’s economy at the heart of everything we do.
“The annual improved revenue performance, reliable cash generation from operations after working capital changes and improved rail volume performance, collectively provides an adequate platform for Transnet to continue its drive to sustainable profitability,” the company said.
Transnet has indicated that it will continue to prioritise focused projects on improving rolling stock availability and the rail infrastructure condition, while building on improved efficiencies and customer projects that have aided improved volume performance on key corridors.
The replenishment of key port equipment in the short- and medium-term as well as through the acquisition of critical spares to support the maintenance teams is a key focus area across all terminals and will go a long way to sustain efficient and improved performance at the ports.
“The company is deeply committed to improving the turnaround times, reducing congestion and enhancing the predictability of our services across rail, ports and pipelines.
“Investments in new equipment, digital systems and operational excellence are already yielding results. Private Sector Participations (PSPs) will remain a cornerstone of our strategy. These partnerships will ensure that Transnet becomes more agile, competitive and customer centric,” Transnet said.
Transnet has made significant progress in implementing key reform initiatives aligned with the Freight Logistics Roadmap, which outlines the strategic direction for the sector transformation.
Some of the notable achievements recorded by the company include the establishment of the Transnet Rail Infrastructure Manager; publication of the Final Network Statement; launch of the Slot Application Process, port Infrastructure and equipment enhancements; and Private Sector Participation in Container Terminal Development.
These initiatives are embedded within Transnet’s Reinvent for Growth Strategy, driving tactical recovery, transformative change and laying the foundation for expansionary growth.
“In the 2025/26 financial year, our focus will be on measurable improvements in rail volumes, port throughput and financial sustainability, while embedding accountability and performance monitoring to ensure delivery.
“Improved financial performance, disciplined capital management, and the government guarantee facility together provide the stability and resources needed for Transnet to modernise infrastructure, attract private investment, and strengthen competitiveness, ensuring the turnaround is sustainable.
“By stabilising freight corridors, modernising ports, and opening the door to private investment, we are positioning South Africa to compete globally, unlock trade, and seize the opportunity of hosting the Group Twenty (G20),” Transnet said.
South Africa assumed the G20 Presidency on 1 December 2024. The presidency, which runs until 30 November 2025, is themed: ‘Solidarity, Equality, Sustainability’.
For the full presentation of use go to https://www.transnet.net/RenderPage.aspx?id=24923733. – SAnews.gov.za
