Share

Transnet balance sheet to fund projects

Cape Town – Transnet’s new expanded capex programme will be funded entirely from the company's balance sheet.

Brian Molefe, CEO of Transnet, was pleased that President Jacob Zuma put the parastatal at the centre of a massive new infrastruce development plan in his State of the Nation address on Thursday night.

Zuma announced that Transnet's capital expenditure will increase from R110bn over the next five years, to R300bn over the next seven.

“The money’s there,” Molefe told Fin24.

“Transnet’s performance is improving, we think we can do it and remain within the necessary gearing ratios.”

Molefe wasin the public gallery while the announcements were being made.

“I’m very happy tonight,” Molefe told Fin24, laughing loudly as the national gallery emptied out into the quad in front of parliament.

Molefe said Transnet had been working on the plans to expand its capex programme since last year, working closely together with minister of public enterprises, Malusi Gigaba.

Molefe said the money will be used, amongst other things, to build new locomotives locally.

“A lot of the money will go to the improvement of rail in South Africa. This will increase expansion of rail lines to the Waterberg area. There will also be money for the ports.”

Gigaba told Fin24 that government had taken the decision to increase Transnet’s capex to R300bn  in mid-2011 already.

“Government doesn’t have to spend a cent on this (Transnet) capex expansion.  It will be funded completely out of the balance sheet of Transnet. It shows the strength of the organisation at the moment. There is quite an exciting phase ahead of us,” Gigaba said, dressed in his 49m campaign shirt, a project that calls on South Africans to use electricity sparingly.

President Zuma’s announcements on Transnet were broadly welcomed. Opposition parties said it’s good to see government planning infrastructure projects that will lead to positive returns for the country down the line.

 - Fin24 

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.97
-0.2%
Rand - Pound
24.06
+0.2%
Rand - Euro
20.57
+0.1%
Rand - Aus dollar
12.35
+0.6%
Rand - Yen
0.13
+0.8%
Platinum
900.98
-0.2%
Palladium
1,000.76
-0.5%
Gold
2,153.55
-0.3%
Silver
24.91
-0.5%
Brent Crude
86.89
+1.8%
Top 40
65,669
-0.9%
All Share
71,900
-0.7%
Resource 10
52,931
-0.7%
Industrial 25
99,286
-1.2%
Financial 15
16,575
-0.3%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders