South Africa's Transnet Cuts Full-Year Loss to R1.9 Billion

South Africa's state-owned logistics group Transnet reported a significantly reduced loss of 1.9 billion rand for the 2024-25 financial year, down from a 7.3 billion rand loss the previous year, reflecting progress from its turnaround strategy. The company recorded a 7.8% increase in revenue to 82.7 billion rand, supported by tariff increases and higher rail volumes, which rose to about 160 million metric tons. Net operating expenses declined by 4.9%, aided by lower third-party claims, while capital investment surged by 44.2% to 24 billion rand, and earnings before interest, taxes, and depreciation increased by 39.4%. Despite these improvements, concerns remain about Transnet's financial viability, with the auditor-general citing material uncertainty and credit rating agencies warning of unsustainable capital structure without extraordinary government support. Transnet aims to continue improving efficiencies, rail infrastructure, and port operations, including offering concessions to private entities on state-owned infrastructure to enhance competitiveness. CEO Michelle Phillips emphasized that although the tide is turning with rising revenue and stabilizing volumes, the company still faces significant challenges to fully recover.