South Africa’s state-owned freight rail and ports operator Transnet reported a smaller loss for the 12 months ending March 2025, signaling early improvements in its long-awaited turnaround.
- Losses: 1.9 billion rand (~$108 million), down from 7.3 billion rand the previous year.
- Revenue: Up 7.8% to 82.7 billion rand.
- Operating expenses: Reduced 4.9% to 52.1 billion rand.
- Freight rail volumes: Increased to 160 million tons (from 152 million), though below the 170 million-ton target.
CEO Michelle Phillips said, “The tide is beginning to turn. Revenue is rising, losses are narrowing, and volumes are stabilising. The foundations of recovery are taking hold.”
Despite improvements, the auditor-general highlighted continued material uncertainty over Transnet’s ability to operate as a going concern, citing past losses, covenant breaches, and credit rating downgrades. Ratings agency S&P Global downgraded Transnet’s rating in July, warning that the company’s capital structure is unsustainable without government support.
The South African government has pledged billions in guarantees this year to avert potential debt defaults. Going forward, Transnet plans to increase private-sector involvement in its ports and rail operations, targeting 180 million tons in freight rail volumes for the current financial year.
