R18.8b Transnet recovery loan approved
The first phase in the freight transport and logistics company's five-year capital investment plan has received a big boost.
The African Development Bank Group yesterday announced that it had approved a R18.85b corporate loan to Transnet, South Africa’s major freight transport and logistics company, for its recovery and growth plans.
The 25-year loan is fully guaranteed by South Africa’s government.
It will facilitate the first phase of the company’s R152.8b five-year capital investment plan to improve its existing capacity ahead of expansion for the priority segments throughout the transport value chain.
Transnet has faced operational challenges mainly in the critical rail and port businesses resulting from underinvestment in infrastructure and equipment, theft and vandalism, and external shocks such as floods and the effects of the Covid-19 pandemic.
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