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Transnet in funding feat

Nov 19 2009 07:37 James-Brent Styan

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Johannesburg - Transnet expects to make a significant announcement next Wednesday regarding funding for its capital expansion projects.

In September the utility said it required an additional R4.7bn in the current financial year if it was to carry out its capital expansion programme.

This funding programme would amount to R80.4bn over the next five years, including the current one.

In September Chris Wells, the utility's acting chief executive, admitted that Transnet had so far been unable to access finance for the anticipated expenditure.

He highlighted the current economic conditions as one of the factors hampering access to finance.

Sake24 believes that next week's announcement will be positive.

Transnet might confirm the availability of funds to make up the shortfall. The company is doing everything in its power to find the money. Instruments such as bonds, export credit agencies and bank loans all form part of its portfolio.

Projects that need to be funded include the expansion of Transnet's coal and iron-ore rail network, the new fuel pipeline between Gauteng and Durban, and the enlargement of Durban's harbour mouth.

Meanwhile according to a Reuters report, Transnet's expansion programme at the port of Cape Town's container terminal will be getting a boost in the form of a €200m loan from the French government's agency for development Agence Francaise de Developpement.

- Sake24.com

For more business news in Afrikaans, go to Sake24.com.

 
 
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