Transnet has signed a R5 billion loan agreement with the New Development Bank (NDB) in support of the public entity’s improvement and modernisation efforts in freight rail.
The agreement was signed during the NDB’s ninth annual meeting held in Cape Town this week.
Transnet Group Chief Executive, Michelle Phillips, said: “This investment is important for Transnet, as we accelerate implementation of the Recovery Plan and economic reforms.
“The modernisation programme will enhance our operational capabilities and contribution to the growth and competitiveness of the economy. We are grateful for NDB’s support and look forward to a successful collaboration”.
NDB President Dilma Rousseff said the bank is “delighted to partner with Transnet in this transformative initiative”.
“This loan underscores NDB’s commitment to supporting sustainable development and economic growth in South Africa. By modernising the freight rail sector, we aim to facilitate more efficient logistics operations that will benefit the entire region and align with our goal of investing in a sustainable future,” Rousseff said.
The freight rail and logistics company explained in a statement that the agreement is aimed an enhancing efficiency and capacity for freight rail systems.
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“The improvement and modernisation of freight rail sector program includes rail network infrastructure renewal, locomotive overhauls, and wagon fleet renewal.
“This program is expected to restore freight rail volumes in South Africa, improving operational performance and reliability, and contributing to a sustainable future,” Transnet said. – SAnews.gov.za
