Transnet has declared a R1.9 billion loss for the year ending March 2025—an improvement of 74% on the R7.3 billion loss it recorded in 2024. Once the country’s most profitable state-owned enterprise and South Africa’s largest taxpayer, the freight and logistics group has been in steep decline following years of state capture and governance failures.
Economists warn that the collapse has cost the country about R1 billion a day in lost output, shaving off as much as 4.9% of GDP in 2023, a blow many analysts say rivals the damage caused by load shedding.
Revenue Rises, Problems Persist
Despite the loss, Transnet’s revenue grew by 7.8% to R87.2 billion, boosted by tariff hikes and rising automotive and bulk rail volumes, according to its financial results. Yet derailments, cable theft, an aging fleet, and weather-related disruptions continued to undermine recovery efforts.
Private Sector on Board
The group is increasingly turning to partnerships to stabilise operations. In August, government confirmed that private operators would be allowed access to Transnet’s rail network, a structural shift aimed at reviving freight movement. Earlier this year, National Treasury approved a R51 billion guarantee facility, with R10 billion allocated for debt repayments and capital investment.
In March, Transport Minister Barbara Creecy launched a request for information inviting companies to co-invest in key export corridors, including iron ore and coal lines running to Richards Bay, Saldanha and Nelson Mandela Bay.
Structural Reform Gains Pace
The turnaround is also underpinned by the Freight Logistics Roadmap, which outlines reforms to separate infrastructure management, improve port efficiency, and expand private participation. Oversight of this process falls under the National Logistics Crisis Committee, set up in mid-2023 by the Presidency to arrest the collapse in freight transport.
Looking Ahead
Transnet’s strategy now rests on four pillars: expanding private-sector partnerships, strengthening financial resilience, driving digital transformation, and embedding a culture of accountability. The company has promised measurable improvements in rail volumes, port throughput, and financial stability in the 2025/26 year.
The question, however, remains: will these reforms restore confidence and growth, or are they too late to rescue South Africa’s logistics backbone…
