Transnet wanted private funders to invest about R100 billion in transport projects to help address bottlenecks, the head of the parastatal’s freight rail unit said yesterday.
Transnet is already investing about R312.2bn over seven years to increase capacity, with about two-thirds to be spent on rail. It moves coal for producers to the Richards Bay coal terminal, the world’s biggest such facility, and transports goods for manufacturers such as Nissan.
“The private sector sits on a pile of cash,” Transnet Freight Rail chief executive Siyabonga Gama said. “We’d like to leverage private capital. We have a shortfall of some R100bn in the logistics system.”
While Transnet intended to retain ownership of the rail network, investors could help fund parts of a heavy-haul link to coal mines in the northern Waterberg region and the construction of a new dig-out port in Durban, Gama said. Private companies could also install and operate rapid train-loading systems or use some of Transnet’s branch lines to run tourism or haulage businesses.
South Africa invested less than R500m a year in new rail infrastructure prior to 2005, causing many companies to switch to road to move their goods – a situation Transnet aims to turn around with its investment programme. The company transported about 230 million tons of the 590 million tons of goods that were “rail-friendly”, he said.
Transnet is spending about R50bn on renewing its locomotive fleet. It awarded the contract to supply 1 064 electric and diesel trains to General Electric, China North Rail, China South Rail and Bombardier Transportation.
Transnet Freight Rail had 29 different engine models in its fleet of 2 400, and wanted to cut that to four, Gama said. All locomotives aged 30 years and older would be replaced in the next four years. – Bloomberg