Transnet has successfully secured a R5 billion loan from the New Development Bank, which was founded by the BRICS group of emerging economies. The South African government will guarantee the loan, as announced by Director General Duncan Pieterse during a New Development Bank meeting held in Cape Town.
Transnet, currently burdened with approximately R130 billion in debt, has faced significant challenges in providing efficient freight rail and port services. These challenges stem from equipment shortages and maintenance backlogs caused by years of under-investment.
According to Transnet’s Chief Executive Michelle Phillips, the loan from the BRICS bank will be instrumental in funding the company’s turnaround plan. “There is a lot of work to be done at Transnet. We are facing major challenges, and this loan is crucial for addressing them,” Phillips stated.
