South Africa’s state-owned logistics company Transnet reported a reduced full-year loss of R1.9 billion, a sharp improvement from the R7.3 billion deficit recorded a year earlier. The development was highlighted in figures released by the company and reported by Reuters.
Revenue rose 7.8% to R82.7 billion, supported by tariff adjustments and stronger port performance, while operating expenses fell by nearly 5%, helped by fewer third-party claims, The Citizen noted. Despite the improvement, Transnet continues to struggle with operational inefficiencies, ranging from equipment shortages to long-standing maintenance delays, which have slowed freight and port throughput.
Government support has played a crucial role. Earlier this year, the Treasury extended a R51 billion guarantee, followed by an additional R48.6 billion, bringing the total to R99.6 billion to help Transnet manage capital needs and debt servicing, details reported by Engineering News show.
Still, auditors have raised red flags over the company’s ability to remain a “going concern” without significant reforms. IOL reported that persistent inefficiencies continue to weigh heavily on the logistics giant’s long-term viability, even as state backing cushions immediate risks.
