South Africa’s freight logistics backbone is carrying good news. Transnet has recorded a profit of R4.6 billion for the financial year ended 31 March 2026, a striking turnaround from the R1.9 billion net loss of the previous year, and clear evidence that the State-owned company’s recovery efforts are delivering measurable results.
Announcing its results on Thursday, Transnet reported that revenue rose 7.1% to R88.6 billion, driven by higher rail and pipeline volumes and tariff adjustments across the business. Earnings before interest, taxes, depreciation and amortisation edged up to R30.9 billion, while the company invested R23.3 billion in infrastructure renewal, operational recovery and future growth.
More trains, more tonnes
The star of the results is the railway itself. Rail volumes increased by 4.9% to 167.9 million tonnes, which the company attributes to focused interventions aimed at improving network reliability, maintenance execution and asset availability. Pipeline volumes also grew during the reporting period.
“The improvement in financial performance was supported by higher rail and pipeline volumes, tariff adjustments across the business and continued efforts to improve operational efficiencies,” the company said in a statement.
Crucially, customers are noticing. Users of the freight logistics system have acknowledged improvements in rail performance and service delivery, and industry bodies, including the citrus sector, have recognised enhancements in port operations that contributed to improved export performance. The operational gains have also been acknowledged by the Minister of Transport and Cabinet as part of government’s broader effort to restore South Africa’s freight logistics system and support economic growth.
A landmark port partnership
A key milestone of the year was the implementation of Transnet’s Private Sector Participation strategy through the Durban Gateway Terminal transaction. Transnet disposed of a 49.999% interest in the terminal to International Container Terminal Services Inc. for R10.5 billion, with effect from 1 January 2026, while retaining a 50.001% shareholding.
The transaction generated a profit on disposal of R12.5 billion, including a related fair value adjustment, and strengthened the group’s overall financial performance. More importantly for the long term, it represents a major step in attracting private investment, improving operational performance and modernising South Africa’s port system for global competitiveness.
Momentum for the economy
Every extra tonne on rail and every container moving smoothly through a port ripples outward, into mines, farms, factories and export markets. While Transnet acknowledges that challenges remain, the numbers tell a story of a logistics giant finding its stride again, and of a freight system starting to pull its full weight for South Africa’s economy. The full results announcement is available from SAnews.
Photo: commons.wikimedia.org
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