Transnet CEO outlines reforms to tackle theft, boost freight volumes

Transnet reassures investors of commitment to R127bn capital expenditure plan over five years

- SIPHELELE DLUDLA

TRANSNET CEO Michelle Phillips was speaking in a wide-ranging discussion on the company's turnaround efforts at the 5th SA SOC Investment Summit hosted by Standard Bank Group in Dubai on Tuesday.

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TRANSNET has reassured investors of its commitment to an ambitious R127 billion capital expenditure plan over the next five years as it works to modernise South Africa's rail and port network, tackle theft and vandalism, and open the system to private operators.

This comes as the State-owned freight and logistics operator continues to ramp up volumes after moving nearly 160 million tons of freight in the year ended 31 March 2025 compared to 151 million tons the previous year.

Freight volumes had been in steep decline since Transnet’s peak year in 2017/18, when it moved well over 200 million tons.

Speaking in a wide-ranging discussion on the company’s turnaround efforts at the 5th SA SOC Investment Summit hosted by Standard Bank Group in Dubai on Tuesday, Transnet CEO Michelle Phillips acknowledged that the freight system has been plagued by significant losses.

Phillips said engagement with customers and labour unions, alongside an 18-month recovery plan, helped to stabilise operations.

“Other than the 23% decline, we've still lost about four-and-a-half million tonnes, purely due to theft and vandalism. If you take that conservatively and you put a tariff to that, that’s a few billion rands there that was lost,” Phillips said.