New Development Bank will provide Transnet with a R18 billion loan to replace its locomotives.
Source: Department of Public Works (DPE)
Transnet is not at full capacity.
In a statement to the media, Transnet Freight Rail (TFR) said it was experiencing three major binding restrictions and was actively addressing them. These include the scarcity of available locomotives, mainly due to being left idle. Ongoing challenges with locomotives of China Railway Rolling Stock Corporation (CRRC). Stagnation of infrastructure development. And the devastating impact of rampant cable theft and infrastructure vandalism.
Transnet is currently resuming locomotive operations, restoring and stabilizing corridor operations,
Rapidly improve the quality of vehicles and infrastructure networks. In addition, we are considering implementing performance-based security contracts to minimize disruption from theft incidents.
The NDP deal is expected to close later this year and forms part of a $5.6 billion evolving portfolio in South Africa.
Katya Hamilton attended the Brics Summit in Johannesburg this week and is reporting live on Bizcommunity.
