Fin24

Transnet granted R3bn loan

2010-06-25 15:38

Johannesburg - The African Development Bank (AfDB) has approved a senior loan of up to $400m (over R3bn) to logistics and transport parastatal Transnet.

In a statement on Friday, the AfDB said the loan would contribute to the financing of Transnet's five year R93.4bn capital investment programme.

According to the AfDB, the programme would allow the parastatal to "revitalise and expand vital rail infrastructure."

By increasing capital investments, recapitalisation and the rehabilitation of key freight and logistics equipment and infrastructure, Transnet would contribute to reducing the cost of doing business in South Africa to internationally competitive proportions, the AfDB added.

This would stimulate trade, boost sustainable economic growth, and facilitate regional integration.

"It also aims to support local suppliers and increase their competitiveness."

The AfDB said the loan would go towards the financing of Transnet Rail's capitalised maintenance plan, which formed part of the investment programme.

"The programme addresses South Africa's freight logistics strategy of creating capacity ahead of demand through improvements to freight transportation infrastructure."

The successful turnaround of the company laid the foundation for the current growth strategy with an overarching theme of improvement in customer service, volume growth and provision of capacity.
 
"It is expected that the scope, integration, and reliability of infrastructure coverage and services will greatly improve as a result of the investment programme with significant increase in operational efficiency and productivity in all of Transnet's business areas."

The AfDB said it looked forward to Transnet increasing its regional footprint.

"The project is well-aligned to South Africa's national priorities and the Bank's country assistance, regional integration, and the private sector strategies."

The AfDB added that its participation Transnet's investment programme would provide direct support for infrastructure development, which was a key focal area for the institution.

"By improving the South African transportation network, regional trade and integration will be facilitated."

 - Sapa

Comments
  • gary - 2010-06-25 15:47

    Transnet is spending R93.4bn on capex. How many bribes are being paid? How much of this is essential,and how much is being wasted? Wait until present management rides off into the sunset and then we will see what the cost to the economy will be. Personally Transnet's ongoing spending worries me.

  • Eugene - 2010-06-25 16:11

    Gary it must sad to live in your South Africa, bud. Gautrain, GFIP, SWC Stadiums, etc. etc. etc. At what point do you become a realist and acknowledge that the money is being spent correctly. All evidence shows that proper construction companies got the work and the work was done quickly and correctly! Shame on you. Moan-gat

  • Zigo - 2010-06-25 16:29

    "to logistics and transport parasite Transnet."

  • JaBoet!! - 2010-06-25 16:31

    I concur, its just another pocket being filled with money and siphoned off with excuse of so-called performance bonuses etc.

  • SHIRLEY - 2010-06-25 17:01

    Anybody who deals with Transnet knows that their figures are all smoke. This is just another cash guzzling parastatal.

  • TaxPayer - 2010-06-25 17:11

    More taxpayer money will be given to Transnet, it'll never be repaid, and the cash will dissapear with the help of BEE companies for services never delivered or audited.

  • Peter - 2010-06-25 17:13

    Citizen fill up your piggy bank transnet will need it soon,It's time to privatize that brain limited company

  • Stephan - 2010-06-25 17:32

    Let's get a loan, like all the others, Escom, bankrupt municipalities etc etc, so we can keep riding the gravy train. Faster and faster South Africa go .... here we come Zimbabwe!!!

  • grant duT - 2010-06-25 17:36

    gary i'm sure you were saying the same about all the roads which you now probably enjoy on a daily basis. whinge-whinge-whinge!

  • Jane - 2010-06-25 18:19

    I have one question. Is this huge spend going to get inland bound freight off our collapsing road network ? The freight trucks are destroying the already crumbling roads.

  • Kapenaar - 2010-06-25 19:29

    Don't worry. Like Eksdom, the taxpayer will foot the bill. No problem.

  • gary - 2010-06-26 08:25

    Eugene-dont forget corruption,crime,eskom,aids,racism,hatred,street rampaging,potholes,parastatal chaos-,union violence,no law and order dimwit ah

  • DAVID - 2010-06-26 08:30

    Hey Eugene-what do new stadiums and gautrain have to do with wastage of taxpayer funds,corruption etc--what you smokin man?--get with the facts---you sure you feelin ok? Since when is the money being spent correctly? dont you know of the Gama case? Or all the contractual disputes at Transnet? U WITH US ON THIS PLANET?????

  • gary - 2010-06-27 10:12

    Hey grant dut =where did I say anything about roads?. You ok with reading simple English?--unhinged??? Never mind you can try again.

  • pages:
  • 1
Report Comment