Transnet’s recovery is showing signs of gaining traction, with the State-owned freight and logistics group reporting improved revenue, stronger cash generation and a return to profitability for the financial year ended March 31, 2026.

Revenue increased by 7.1% to R88.6-billion, supported by higher volumes in the rail and pipeline businesses and weighted average tariff increases. EBITDA rose marginally by 0.7% to R30.9-billion, while the group recorded a R4.6-billion profit, compared with a R1.9-billion loss in the previous financial year.

For South Africa’s mining and export sectors, the performance of the country’s freight rail and port infrastructure remains critical. Transnet, however, continues to face operational constraints across its rail and port businesses, including derailments, network and rolling-stock challenges, security incidents, power failures, adverse weather and resource constraints.

Capital investment remains a key lever in addressing these challenges. Transnet invested R23.3-billion during the year, with further infrastructure investment expected to improve operational efficiency, particularly across rail and ports.

The group’s cash generation also strengthened substantially, with cash generated from operations increasing by 50.5% to R33.1-billion. This provides additional capacity to support the organisation’s operational and investment priorities.

A significant structural change has also taken place in the rail environment. Transnet Freight Rail completed the accounting separation of its operating company from the Transnet Rail Infrastructure Manager (TRIM). TRIM will be responsible for overseeing rail network quality and reliability, with the objective of enabling the network to deliver higher tonnage.

Transnet’s private-sector participation program also advanced through the disposal of a 49.999% interest in Durban Gateway Terminal to International Container Terminal Services Inc. for R10.5-billion, while Transnet retained a 50.001% shareholding.

The improved financial results provide a stronger foundation for Transnet’s “Reinvent for Growth” strategy. The challenge now is to convert this momentum into sustained improvements in rail and port reliability, increased freight capacity and greater efficiency across the logistics chain - outcomes that will remain important to South Africa’s mining and broader export economy.

https://www.transnet.net/AnnualResults