South Africa's state-owned logistics firm Transnet on Friday reported a 1.6 billion rand ($86.8 million) loss in the six months to Sept. 30 on the back of declining rail, port and pipeline volumes amid higher costs.

Transnet registered a 159 million rand profit during the same period last year.

Although its revenue rose 8.6% to 39.2 billion rand in the six months thanks to tariff increases for its services, costs rose 9.5% to 25.3 billion rand due to higher payroll, electricity and security expenses.

($1 = 18.4244 rand) (Reporting by Nelson Banya; Editing by Jan Harvey)