South Africa: Transnet returns to profit as freight volumes rise and Durban deal boosts results

Transnet returned to profit for the financial year ended March 2026, ending four consecutive years of losses. The state-owned logistics group posted a net profit of 4.6 billion rand, compared with a 1.9 billion rand loss a year earlier, while revenue increased by 7.1% to 88.6 billion rand.

The improvement was supported by higher freight volumes across Transnet’s rail and pipeline businesses, as well as a major transaction involving its port operations.

Durban transaction provides a major boost

A key contributor to the result was Transnet’s agreement with International Container Terminal Services Inc. (ICTSI), the Philippine-based port terminal operator.

The deal involves a stake in the Durban Container Terminal, one of South Africa’s main gateways for containerised trade, under a 25-year concession arrangement. The transaction generated a 12.5 billion rand gain for Transnet, making it a major factor behind the return to profitability.

The additional financial capacity comes as Transnet continues to face the need for significant investment in its rail and port infrastructure.

Freight volumes are recovering but remain below target

Operational performance remains more mixed. Transnet moved 167.9 million tonnes of freight during the financial year, below its target of 180 million tonnes.

Although volumes increased across rail and pipeline operations, the gap with the target highlights the continuing capacity and reliability constraints affecting South Africa’s freight rail network.

The issue is particularly important for mining and commodity supply chains, which rely heavily on rail connections between production areas and export terminals.

Private operators set to enter the rail network

Transnet is also preparing to expand private-sector access to its rail infrastructure. Eleven private operators are expected to begin using the network from 2027.

Their entry could add up to 52 million tonnes of freight capacity, according to figures reported by Reuters.

For shippers and logistics providers, greater private-sector participation could increase rail freight options and reduce reliance on road transport along selected freight corridors.

129 billion rand investment programme

Despite the return to profit, Transnet’s financial position remains under pressure. Total debt reached 150.7 billion rand.

The company plans to invest 129.1 billion rand over the next five years, mainly in infrastructure maintenance and rehabilitation. Public guarantees are expected to support the financing of the programme.

The key challenge will now be to turn the improved financial position into sustained operational gains: higher rail capacity, more reliable freight corridors and smoother cargo flows towards South Africa’s ports.

For the country’s supply chains, Transnet’s return to profit is therefore a positive financial signal, but its longer-term performance will depend on its ability to increase freight volumes and improve the reliability of the infrastructure connecting production centres with export terminals.