Group Chief Executive Michelle Phillips notes that the company’s recovery is more than a company story.
by Blue Africa News
South Africa’s state-owned rail, port and pipeline company, Transnet, has reported notable improvements in its operating environment over the past year, although it still posted a loss in the period under review.
The company reported a loss of R1.9 billion (approximately US$108.18 million) in the last 12 months to the end of March, 2025, down from R7.3 billion recorded a year before, a 73.7 percent improvement.
Revenue rose by 7.8 percent to R82.7 billion, while net operating expenses decreased by 4.9 percent to R52.1 billion.
Considered Transnet’s largest operating division, freight rail recorded an improvement in volumes to about 160 million metric tons, up from 152 million tons in the previous year. The target was 170 million tons during the year under review.
Speaking while presenting Transnet’s annual financial results at the Johannesburg Stock Exchange (JSE) in Sandton on September 05, Group Chief Executive Michelle Phillips noted that the company’s recovery is more than a company story.
“It is a signal that our economy is starting to turn the corner,” she said, adding, “Our success is directly tied to the country’s success. Recovery is not an event; it is a journey.”
The Chief Executive highlighted stabilising freight volumes, modernising ports and opening the market to third-party participants, as key contributors to the turnaround.
Nosipho Maphumulo, the Group Chief Financial Officer attributed the significant improvement to hard work and collaboration from employees, customers, and management.
“Rail continued to account for 50% of Transnet’s overall business,” noted Maphumulo, praising Transnet’s ports division for its improved performance over the year, recording a 47% rise in its overall profit.
Despite signs of recovery after years of “mismanagement, state capture and poor governance practices,” experts say Transnet turnaround may stall without bold structural reforms going forward.
“Transnet has improved its operations but is still sinking under the weight of its debt and past mismanagement. Without bold structural reforms, its turnaround will stall,” said Dumisani Pamba, Governance, Risk and Compliance specialist in a LinkedIn post.
“While losses narrowed drastically (R1.9bn vs R7.3bn), Transnet is still not profitable. Without restructuring its debt and improving governance, sustainability is questionable.”
As the backbone of South Africa’s exports and imports, the expert said, Transnet’s weakness affects the entire economy, ranging from mining to agriculture, and to manufacturing.
He urged the government to tackle corporate governance reforms, debt restructuring, and infrastructure investment as a matter of urgency, for the company to become profitable.
Access Transnet’s 2024/2025 annual results here: https://www.transnet.net/default.aspx
Oliver Ochieng, Blue Africa News