• Transnet cut its half-year loss to 1.8 billion rand from 2.2 billion rand year on year.

• Rail freight volumes rose to 81.4 million tonnes from 78 million tonnes.

• The group lifted revenue to 45.2 billion rand and EBITDA to 15.7 billion rand.

As Transnet prepares to transfer the management of several business segments to private operators, the company’s gradual recovery over recent months has strengthened its restructuring program. In addition to operational improvements, the state-owned logistics group has reduced its debt burden.

South African logistics operator Transnet reported improved financial and operational performance over the six-month period from April to September. The group announced a reduction in losses to 1.8 billion rand, or about $107 million, compared with a loss of 2.2 billion rand over the same period a year earlier. At the same time, rail freight volumes increased to 81.4 million tonnes from 78 million tonnes previously.

The company attributed this progress primarily to stronger operational capacity at ports following the acquisition of strategic port equipment. On the financial front, revenue increased by 8.8% to 45.2 billion rand from 41.5 billion rand. Earnings before interest, tax, depreciation and amortization rose by 15.4% to 15.7 billion rand. Capital expenditure dedicated to maintenance and operational development reached 11 billion rand, marking a 5% year-on-year increase.

Transnet said these improvements remain essential to support the ongoing liberalization process, which includes the concessioning of several port terminals and the opening of rail slots to private operators. Data from the group’s 2024–2025 full-year results published in September showed that Transnet reduced its annual net loss by 74% to 1.9 billion rand from 7.3 billion rand the previous year. Over the same period, revenue increased by 7.8% to 82.7 billion rand.

Despite these positive signals, some analysts continue to question the impact of liberalization reforms on a company historically tasked with a public service mandate. They ask how effectively Transnet can adapt to private-sector profitability requirements. While current performance points to a tangible turnaround, analysts say long-term success will depend on Transnet’s ability to balance economic efficiency with public service obligations.

This article was initially published in French by Henoc Dossa

Adapted in English by Ange Jason Quenum