Transnet recorded large increases in revenue and capital expenditure, and reduced losses by more than R4 billion.
Transnet has announced improved results for the 2024-25 financial year, but has still recorded a significant loss.
Friday’s release of its annual results for the year ending March 2025 showed increases in revenue and capital investment, as well as an increase in earnings before deductions.
The results stem from a stabilisation and growth strategy that executives believe will put the entity on a positive trajectory throughout the current financial year.
Revenue increased
Transnet’s strategy is to stabilise its freight operations and modernise ports to make South Africa globally competitive.
“Transnet recognises that its success is directly tied to the country’s success because when Transnet works, South Africa thrives,” the entity stated on Friday.
In the past financial year, the state-owned entity recorded a 7.8% increase in revenue to R82.7 billion.
This was aided by executives’ success in decreasing net operating expenses by 4.9% to R52.1 billion.
However, cash generated from operations after working capital changes decreased by 0.6% to R28.6 billion.
Capital investment saw an encouraging 44.2% increase to R24 billion, with earnings before interest, taxes and depreciation increasing by 39.4% to R30.6 billion.
In the 2023-24 financial year, Transnet recorded losses of R7.3 billion, with the overall effect of the turnaround strategy resulting in a decrease in losses to R1.9 billion.
Transnet’s strategy
To continue the financial momentum, Transnet will continue to improve efficiencies and the condition of its rail infrastructure.
Improved performance at ports, support for maintenance teams and the acquisition of critical spares equipment were highlighted as key operational objectives for the future.
“The company is deeply committed to improving the turnaround times, reducing congestion and enhancing the predictability of our services across rail, ports and pipelines.
Transnet’s process of offering private entities concessions for operating on state-owned infrastructure will be another common theme in the coming year.
“Private Sector Participations (PSPs) will remain a cornerstone of our strategy. These partnerships will ensure that Transnet becomes more agile, competitive and customer-centric,” the entity concluded.
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