Transnet gets R5 billion NDB loan to modernise rail freight sector
Programme includes rail network infrastructure renewal, locomotive overhauls and wagon fleet renewal.
(From left): Dilma Rousseff, President, New Development Bank and Michelle Phillips, Group Chief Executive, Transnet signing the agreement in Cape Town, South Africa.
The New Development Bank (NDB) announced a R5 billion ($280 million) loan agreement with Transnet, South Africa’s leading freight transport and logistics company.
"The investment, aligned with the theme of NDB’s Investing in a Sustainable Future will support the modernisation and improvement of South Africa’s freight rail sector," says an official release from NDB.
The loan agreement, signed during NDB’s ninth annual meeting, aims to enhance the efficiency and capacity of South Africa’s freight rail systems, the release added. "The improvement and modernisation of the freight rail sector programme includes rail network infrastructure renewal, locomotive overhauls and wagon fleet renewal. This programme is expected to restore freight rail volumes in South Africa, improving operational performance and reliability, and contributing to a sustainable future."
Dilma Rousseff, President, NDB says: “We are 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.”
Michelle Phillips, Group Chief Executive, Transnet adds; “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 was created in 2015 by Brazil, Russia, India, China and South Africa to mobilise resources for infrastructure and sustainable development projects in the BRICS and other emerging market economies and developing countries. In 2021, the NDB began expanding its membership and admitted Bangladesh, Egypt, the United Arab Emirates and Uruguay as its new member countries, the release added.