State-owned freight and rail group Transnet reported a R4.6bn profit for the year ended March from a loss of R1.9bn in the previous year — its first profit in four years as reforms takes shape.The group’s revenue increased 7.1% to R88.6bn, tracking improved rail and pipeline volumes in the period. Despite the progress, the group’s balance sheet remains under pressure, with elevated debt levels and high debt-servicing costs.Transnet chair Andile Sangqu said the first profit in four years reflected the early benefits of improved operational performance and tighter discipline.He stressed that sentiment towards Transnet was improving. “Encouragingly, an important indicator of improving stakeholder confidence was the successful engagement with international development finance institutions. During the year, Transnet advanced funding initiatives with key development partners, including the Agence Française de Développement (AFD),” he said.“The continued support of institutions such as AFD reflects confidence in Transnet’s strategic importance to South Africa’s economy, the long-term viability of its infrastructure investment programme and the progress being made in implementing operational and financial recovery initiatives,” he said.“The board is cautiously optimistic about the path ahead. Progress has been made in stabilising the organisation and advancing key reforms. The focus for 2026/27FY will be on sustaining operational improvements, advancing private sector participation and strengthening financial resilience.”Rail volumes increased to 167.9-million tonnes from 160.1-million tonnes in the prior year, while petroleum volumes increased to 14.2-billion litres from 13.37-billion. However, container throughput declined slightly to 4,048,000 twenty-foot equivalent units (TEUs), from 4,092,000 TEUs.Transnet CEO Michelle Phillips said the group had reinforced its focus on execution and integration across its operating divisions. “Improved co-ordination across rail, ports and pipelines supported a more integrated approach to logistics delivery. Progress in resolving legacy challenges has also contributed to a more stable environment. While risks remain, the business’s underlying performance has strengthened, providing a more resilient foundation,” she said.“The diversified nature of Transnet’s revenue base continues to provide resilience, with multiple streams contributing to overall performance and mitigating the impact of volatility in specific segments,” she said.“However, sustained revenue growth will remain counterparty date signed dependent on continued improvements in infrastructure availability, network reliability and the group’s ability to unlock additional volume capacity across the value chain.”Business Day