South African state-owned logistics company Transnet announced its annual financial results on Thursday, September 10, 2026, reporting a R4.6 billion gain for the financial year ended March 2026. This return to profit after four years was driven by increased rail volumes and the strategic disposal of assets. Transnet stated that "Rail volumes increased by 4.9% to 167.9 million tonnes, reflecting the positive impact of focused interventions aimed at improving network reliability, maintenance execution and asset availability."
The company added that "Pipeline volumes also recorded growth during the reporting period. While challenges remain, the improvements achieved during the year indicate that Transnet's operational recovery efforts are beginning to deliver measurable results." A key factor was a transaction that "generated a profit on disposal of R12.5 billion, including a related fair value adjustment, and strengthened the Group's overall financial performance for the year," Transnet noted, confirming it retains a 50.001% shareholding in Durban Gateway Terminal (DGT) while management control transferred to International Container Terminal Services Inc. (ICTSI). Transnet invested R23.3 billion in critical infrastructure and equipment renewal during the year "to support ongoing recovery and future growth."
Operational Performance Boost
Transnet's financial turnaround marks a significant improvement from the R1.9 billion loss recorded in the previous year. The company's revenue increased by 7.1% to R88.6 billion during the reporting period. This growth was achieved despite a rise in operating expenses, which climbed by 10.8% to R57.7 billion. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) also saw an increase of 0.7%, reaching R30.9 billion.
Transnet reported that "Rail volumes increased by 4.9% to 167.9 million tonnes, reflecting the positive impact of focused interventions aimed at improving network reliability, maintenance execution and asset availability." The company also noted that "Pipeline volumes also recorded growth during the reporting period. While challenges remain, the improvements achieved during the year indicate that Transnet's operational recovery efforts are beginning to deliver measurable results." A key component of the financial performance was a strategic asset disposal. Transnet stated, "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 for the year." Transnet confirmed it "retains a 50.001% shareholding in DGT, while management control transferred to ICTS." Furthermore, "to support ongoing recovery and future growth, Transnet invested R23.3 billion during the year in critical infrastructure, equipment renewal and operational improvements."
Strategic Asset Divestment
A significant component of Transnet's financial turnaround was the strategic divestment of a 49.999% stake in Durban Gateway Terminal (DGT) to International Container Terminal Services Inc. (ICTSI) for R10.5 billion. Transnet reported that "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 for the year." This divestment played a key role in the company's return to profitability.
Transnet further confirmed that it "retains a 50.001% shareholding in DGT, while management control transferred to ICTS." The company noted that "Rail volumes increased by 4.9% to 167.9 million tonnes, reflecting the positive impact of focused interventions aimed at improving network reliability, maintenance execution and asset availability." Additionally, Transnet noted that "Pipeline volumes also recorded growth during the reporting period. While challenges remain, the improvements achieved during the year indicate that Transnet's operational recovery efforts are beginning to deliver measurable results." To support these efforts and future expansion, Transnet stated it "invested R23.3 billion during the year in critical infrastructure, equipment renewal and operational improvements."
Investment and Future Outlook
Transnet invested R23.3 billion in critical infrastructure, equipment renewal, and operational improvements during the year, supporting its ongoing recovery and future growth plans. The company reported that "Rail volumes increased by 4.9% to 167.9 million tonnes, reflecting the positive impact of focused interventions aimed at improving network reliability, maintenance execution and asset availability." This increase in rail volumes contributed to Transnet's return to profitability. Looking ahead, the National Treasury approved R14.8 billion in grant funding for Transnet through the Budget Facility for Infrastructure (BFI). This funding is earmarked for strategic rail and port projects, signaling government support for the company's long-term development. The investments are intended to bolster network capabilities and enhance operational efficiency across Transnet's divisions.
