State-owned logistics company Transnet is showing signs of recovery under its Tactical Recovery Plan, although freight rail volumes remain well below the peak of 215.1 million tonnes recorded in earlier years.
This was revealed in the Operation Vulindlela third-quarter report for the 2025/26 financial year. The report was released on Friday.
It shows that Transnet increased freight volumes by 4.4% in its interim results for the period ended September 2025. This supported by the ongoing recovery programme.
Annual increase by 5.5%
On an annual basis, volumes increased by 5.5% to 160.1-million tonnes. Up from 151 million tonnes in 2024.
This improvement was the main driver of a 9.2% rise in revenue to R42.7-billion, compared with R39.1-billion in the previous year.
While the results reflect meaningful progress, Transnet’s current performance remains far below the levels achieved before its severe operational decline.
The recovery is taking place alongside broader reforms to South Africa’s freight logistics system. These reforms aim to modernise the sector, support economic growth and reduce transport costs for businesses.
Transnet continues to face significant operational challenges. These include train derailments, security-related incidents, shortages of rolling stock and long-standing infrastructure constraints. The freight rail challenges, among other things, have resulted in Transnet running into losses for the past few years.
Rail network maintenance critical
In the 2025 Transnet Freight Rail Report, CEO Russel Baatjies said rail systems were also maintained to sustain the growth that have been seen.
“Critical rail network maintenance was conducted through the shutdown windows in each corridor to stabilise and improve network conditions. Freight Rail strengthened partnerships with outcome-based service (OBS) providers to reduce security incidents disrupting rail services. This includes proactive monitoring and incident management to minimise theft and vandalism,” said Baatjies.
As part of the recovery effort, Transnet is also modernising and expanding its locomotive fleet. A total of 240 new locomotives are planned. And 200 have already been delivered, while the remaining 40 are expected by June this year.
The International Container Terminal Service Inc (ICTSI) has also signed a 25-years contract with Transnet. This is for the development, upgrade and operation of the Durban Container Terminal Pier 2.
This agreement was effect January 1. And it is aimed to bring more than R11-billion investment in infrastructure, new equipment and advanced technology. And this increases handling capacity to 2.8 million 20-foot equivalent units (TEUs).
“This is significant as the first major private sector participation transaction following the adoption of the Freight Logistics Roadmap in 2023,” reads the report.
Looking ahead to the fourth quarter, the report emphasises the importance of finalising outstanding regulatory processes. Thus making new institutions fully operational and speeding up project implementation.
