Transnet has not yet met its own targets, but there is progress

ALTHOUGH Transnet has not yet met its own targets, the Medium Term Budget Policy Statement (MTBPS) notes that progress has been made. In particular, the Treasury said that Transnet's freight rail volumes increased in 2024/25 and port volumes have stabilised.

- HELMO PREUSS

“Reforms in freight logistics focus on upgrading poorly maintained infrastructure and introducing private-sector participation in rail and ports. A rail infrastructure manager was established as a separate division of Transnet in April 2025 and has opened slots on the freight rail network to 11 private rail companies,” the MTBPS said.

Transnet is addressing a financial and operational decline as rail volumes have declined from 226.3 million tonnes in 2017/18 to 151.7 million tonnes in 2023/24 due to derailments, inefficiency and infrastructure damage. In 2023/24, Transnet reported a net loss of R7.3 billion, relative to R5.1bn in 2022/23, largely due to increased finance costs.

Additional debt and higher interest rates pushed finance costs to R14.3bn in 2023/24, placing further strain on cash flows.