Transnet, a state-owned port and logistics company, faces "material uncertainty" about its ability to continue as a going concern due to a R1.9bn net loss, a net current liability position of R65.2bn, and covenant breaches following credit rating downgrades. Despite these challenges, the directors remain optimistic, citing a 7.8% revenue improvement and a significant reduction in losses, supported by R145.8bn in government guarantees. They emphasize the need to address operational challenges and improve cash generation to support capital investments and reduce debt. However, issues like noncompliance with National Treasury instructions regarding irregular expenditure persist.