There are early indications that state-owned transport group Transnet might report a turnaround in the performance of its freight rail and port operations. It could reverse its loss-making position in 2024 and even return to profitability in 2025.

Is Transnet's financial situation finally turning around, with the new management arresting the billions of rands in losses incurred over the past few years?

Preliminary and unaudited data suggest that Transnet is set to announce an improvement in the performance of its logistics operations when it tables its 2023/24 financial statements in August 2024. Intriguingly, Transnet is also not expected to be in a loss-making financial position.

There are also early talks within Transnet corridors that the state-owned enterprise (SOE) might return to profitability in 2025. The last time Transnet turned a profit was in 2022 when a financial gain of R5-billion was recorded.

However, 2023 was an abysmal year for Transnet, with Portia Derby presenting her last set of results as CEO, in which the SOE unveiled a loss of R5.7-billion, mainly due to inefficiencies of its freight rail network.

Daily Maverick understands that Transnet -- led by new CEO Michelle Phillips -- is on track to reverse this loss position. A spokesperson for Transnet declined to comment on the company's preliminary financial position, only telling Daily Maverick that it was in a close period and its financial books were being audited, preventing it from providing detailed commentary.

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