Plans to revamp South Africa’s freight and rail sector have received a major boost following the signing of a R5-billion loan agreement between Transnet and the New Development Bank (NDB).
The NDB said in a statement on Friday that the loan agreement with Transnet had been signed at the bank’s recent ninth annual meeting, and that the funds would be invested in the state-owned entity’s plans for the “modernisation and improvement” of the country’s freight and rail sector.
These include implementing a programme to modernise the rail network infrastructure, overhaul locomotives, and renew the wagon fleet to restore freight rail volumes and improve operational performance and reliability.
NDB president, Dilma Rousseff, said the bank was delighted to partner with Transnet in the “transformative initiative”.
“This loan underscores NDB’s commitment to supporting sustainable development and economic growth in South Africa,” Rousseff said.
“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.”
Transnet Group chief executive, Michelle Phillips, said the investment was important as the entity accelerated implementation of its 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,” Phillips said.
