The Transnet interim financial results for the six months to end-September, released in December, signified a pivotal shift in momentum and supports our conviction that our current trajectory is aligned with our long-term objectives. It tells a story of an operational performance and capital expenditure that lay a solid foundation for the future. In the past two years Transnet has arrested the long-term decline in freight volumes, stabilised operations, improved port efficiency, taken steps to address security, and prioritised customer engagement.
The Reinvent for Growth (R4G) strategy guides our ambition to transform Transnet from operational recovery to sustainable growth through infrastructure investment, improved efficiency and the pursuit of private sector partnerships (PSPs). We are positioning Transnet as a leading and sustainable logistics partner driving economic growth in South Africa and the broader African continent. Since the beginning of the current financial year we have seen a major shift from operational recovery to enabling sustainable growth.
Our strong focus has been on optimising efficiency and modernisation, embracing PSP opportunities, assets optimisation and financial sustainability. Financial performance for the interim reporting period signalled a positive shift in Transnet’s financial health as increased volumes throughout the business boosted revenue, earnings before interest, taxation, depreciation & amortisation (ebitda) and narrowed our loss for the period. We continue to show sustained improvements as the rail volume performance is higher than the prior period, reflecting an increase of 4.4% to 81.4mt (2024: 78mt).
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Performance improvements are evident through increased tonnage throughput, with the financial month of September 2025 recording an annual high of 14.8mt, the highest monthly performance achieved since the 2022 financial year, despite the annual maintenance shutdown affecting manganese volumes. This resulted in a 17.7% improvement in the reported net loss of R1.8bn (2024: R2.2bn). The execution of commercially viable strategic PSP opportunities, to unlock investment, attract expertise and improve service delivery, is the cornerstone of Transnet’s recovery and the R4G Strategy, our medium-to-long term blueprint for transforming the organisation into a reliable logistics provider that actively supports South Africa’s economic growth aspirations.
Our pursuit of these PSP opportunities is driven by our priorities, which include financial recovery, operational excellence and infrastructure modernisation. Our much-anticipated strategic partnership with International Container Terminal Services to manage and upgrade the Durban Container Terminal (DCT) Pier 2 is in the implementation phase. The partnership marks a step forward in modernising DCT Pier 2, the largest and busiest container terminal in South Africa.
It is a path to a more efficient and modern terminal. This private sector partnership (PSP) will introduce global best practice, advanced systems and operational excellence. The DCT Pier 2 transaction is one of several PSP opportunities that we are pursuing to improve efficiency, capacity and investment in South Africa’s logistics network.
These include the Richards Bay Dry Bulk Terminal PSP, the Ngqura Manganese Export Terminal project, and the establishment of a rolling stock leasing company (LeaseCo), about which we will provide further updates later this year. Our targeted capital expenditure programme has been instrumental in the recent steady and reliable improvement in the performance of our terminals. In the 2024/25 financial year, Transnet Port Terminals (TPT) set aside R3.4bn to strengthen the fleet across its container terminals, while another R4bn has been set aside to acquire this financial year (2025/26). Through our focused and expansive acquisition of key port equipment such as new rubber-tyred gantry (RTG) and ship-to-shore (STS) cranes, we have optimised the operational efficiency and competitiveness of our terminals.
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