Transnet moving in right direction, Creecy tells MPs

CAPE TOWN - Despite Transnet’s almost two billion rand loss in the past financial year, Transport Minister Barbara Creecy says the entity is moving in the right direction.

But Creecy told Parliament that unless there’s significant investment in infrastructure, the freight agency can not be expected to hit targets to move more goods.

Last Friday, the entity released its 2025 results, reporting that it had slashed its losses by 74 percent compared with last year and said it expects to once again turn a profit next year.

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Quizzed by former PRASA CEO-turned-MK Party-MP, Lucky Montana, about the non-tabling of a strategic plan for Transnet, Minister Creecy said the rail agency was not obliged to do so and that it had to protect market-sensitive information.

Reducing its losses from R7.3 billion last year, but having missed its rail volume target of 170 million tonnes, Creecy said she was still satisfied by the turnaround progress.

"The key thing that I’m concerned about is, are the figures moving in the right direction or are the figures moving in the wrong direction. At the moment, the figures are moving in the right direction and that gives me hope."

Creecy said a policy was being developed to allow Transnet customers to make investments in infrastructure in exchange for incentives in freight charges.

"We know that without significant investment in infrastructure, we are not going to get those figures up further."

Creecy said that a funding application for R14.4 billion had already been submitted to the budget facility for infrastructure and another for R16.5 billion is expected to be submitted in October.

Before the end of the year, requests for proposals for concessions to improve the rail network will also be issued.