Cape Town, South Africa — MININGREVIEW.COM — 18 June 2009 – Transnet Limited – the South African transport infrastructure operator – is planning to borrow R12.9 billion rand in the current financial year to help finance a variety of new projects, including a R5 billion capacity upgrade for the Richards Bay coal line.
In an address to lawmakers here, Transnet acting CEO Chris Wells said the state-owned company planned to invest R80.5 billion rand over the next five years as part of a government-backed drive to spur growth and job creation in Africa’s largest economy.
“More than 50% of the funding required for the year that ends on 31March 2010 has already been secured,” he revealed, “and borrowing of R9.6 billion is planned for fiscal 2011, and R5.6 billion for the following year.
“Transnet is self-funded and does not seek subsidies from the state, nor does it see the need for this in the near future,” Wells continued. The company is currently in negotiations to borrow money from the African Development Bank, and is also considering issuing new domestic and international bonds.
The new projects planned by Transnet include a R5 billion expansion of the Richards Bay railway line, which carries the bulk of the country’s coal to the port from Mpumalanga for export.
Other investments include the construction of a 550-kilometer fuel pipeline between Durban and Johannesburg at a cost of R12.6 billion; and the widening the harbour entrance in Durban at a cost of R3.8 billion.