[SMM Chromium Flash] Transnet Posts First Profit in Four Years as Rail Volumes Rise 4.9% to 167.9 Mt

Published: Sep 17, 2026 20:43

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South Africa's state-owned freight logistics group Transnet reported a R4.6 billion profit for the financial year ended March 31, 2026, its first annual profit in four years, reversing a R1.9 billion loss in the prior year. Revenue rose 7.1% to R88.6 billion, driven by higher rail and pipeline volumes together with weighted average tariff increases. Rail volumes, handled by Transnet's largest operating division, increased 4.9% to 167.9 million mt from 160.1 million mt a year earlier, while pipeline volumes grew 6.9% to 14.3 billion litres. EBITDA rose 0.7% to R30.9 billion, with the EBITDA margin narrowing 2.2 percentage points to 34.8%, and net operating expenses increased 10.8% to R57.7 billion.

A substantial portion of the profit stemmed from a once-off transaction rather than operations. Transnet disposed of a 49.999% interest in the Durban Gateway Terminal to International Container Terminal Services Inc. for R10.5 billion, effective January 1, 2026, generating a R12.5 billion profit on disposal including a related fair value adjustment. Group CEO Michelle Phillips said the company still has a long way to go in its recovery, noting that rail volumes remain below the previously announced 180 million mt target, which she described as a prerequisite for the underlying business to break even. Borrowings rose to R150.7 billion, and capital investment totalled R23.3 billion during the year, with a further R129.1 billion planned over the next five years.

The results carry relevance for South Africa's chrome sector, which depends on Transnet's rail and port network to move record chrome ore export volumes, and where rail and port logistics constraints have been repeatedly cited by industry bodies as a structural drag on ferroalloys competitiveness, forcing greater reliance on costlier road transport. Transnet also reported progress on opening its rail network to third-party operators, having concluded Rail Access Agreements with 11 train operating companies, with the first services expected to commence during the 2026/27 financial year. Transnet's results did not disclose chrome ore or ferroalloys-specific volumes within the rail or port figures, leaving the extent of any improvement in chrome-specific logistics performance unquantified.

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