Transnet still in the red

South African state-owned logistics group Transnet on Friday reported a smaller loss of 1.9 billion rand in the financial year to the end of March, down from a 7.3 billion rand loss in the previous year.

The debt-saddled company has struggled to provide adequate freight rail and port services for years due to equipment shortages and maintenance backlogs.

Transnet’s chronic underperformance has stifled exports of key commodities such as coal and iron ore, costing mineral exporters billions of rand in lost revenue, with Kumba Iron Ore and thermal coal exporter Thungela Resources forced to curtail production.

The logistics firm said its revenue rose 7.8% to 82.7 billion rand in its 2024/25 financial year, thanks to tariff increases and higher rail volumes.

Net operating expenses decreased 4.9% to 52.1 billion rand, helped by a decline in third-party claims.

• Reporting by Sfundo Parakozov and Nelson Banya; Editing by Alexander Winning