South Africa’s biggest transport company made a profit for the 1st time in 4 years

South Africa’s biggest transport company, Transnet, returned to profitability for the first time since 2022, with profits swinging from a R1.9 billion net loss in the previous financial year to a R4.6 billion gain this time around.

Transnet published its 2026 Annual Report earlier today, 10 September 2026, wherein the state-owned entity (SOE) revealed its impressive turnaround.

According to the report, the transport company increased its revenue for 2025/26 by 7.1% to R88.56 billion.

This success is the result of the rail and port authority keeping its turnaround plans on track, including improvements in its core logistics business, as well as the sale of a large stake in the Durban Container Terminal.

Transnet sold a 49.999% interest in the Durban Gateway Terminal at the Port of Durban to International Container Terminal Services Incorporated (ICTSI) for R10.5 billion.

Without the one-off sale, Transnet’s headline earnings recorded a loss of R4.8 billion, which led to the Auditor-General issuing an unmodified audit opinion on the annual financial statements for the year ended 31 March 2026.

That said, the SOE has implemented a recovery strategy since October 2023 to address its rail and port deficiencies, declining freight volumes, and financial distress.

This strategy, which includes both public and private sector participation on South Africa’s rails and at its ports, aims to address the transport company’s dire financial situation and is starting to show signs of success.

According to Transnet CEO Michelle Phillips, the company reinforced its focus on execution and integration across its Operating Divisions.

“Improved coordination across rail, ports and pipelines supported a more integrated approach to logistics delivery,” she said.

“Progress in resolving legacy challenges has also contributed to a more stable environment.”

According to the CEO, the business’s underlying performance has strengthened, providing a more resilient foundation, despite the remaining risks.

More one-off sales to benefit Transnet

Transnet could be in line for another 15 one-off profits, after it announced plans to sell that many large commercial properties across South Africa.

The SOE published a notice of intention in the Government Gazette on 24 August 2026, inviting proposals for certain immovable properties under Section 52 (2) of the Public Finance Management Act of 1999.

In accordance with legislation and government protocol, the properties will be made available to other state entities before the general public.

These include national and provincial governmental departments, municipalities, and state-owned companies, which have the first right to express interest in acquiring or leasing the properties.

Offers need to be made to the Acting Director-General of the Department of Transport within 30 days of the notice’s publication – a fast-approaching deadline.

Following this period, any unsold properties will be made available for proposals from interested private companies.

Transnet said that the 15 commercial properties are not part of its core assets, including:

“Should no formal interest be received from any Government Department, SOC, or qualifying
public entity within the prescribed 30-day period, Transnet will proceed to issue a public request for proposal to the open market for interested private sector parties,” it said.