NPA will remain within Transnet

As it focuses on core business ED RICHARDSON TRANSNET WILL be focusing on its “rail, port and petro-pipeline core business,” according to the Department of Public Works. In its supplement to the 2005 budget, Public Works says it has been decided that the National Ports Authority (NPA) will remain within Transnet, with “a strengthened regulator, and with the intention of moving it to a public company” in order to stabilise its financial position. Plans for investments are divided into those which maintain Transnet’s operations at reasonable efficiency levels (replacing old assets with new assets that perform the same functions) and those that would expand South Africa’s port and rail infrastructure in a manner that would lead to growth and not follow it. In the first phase, the department is concentrating on maintaining Transnet’s current operations that are sustainable on the balance sheet. The total of these investments is R37 billion over the next five years, which can be funded primarily out of core business cash flows. The projected capital market requirements, for both this capital expenditure programme and existing debt service costs, range from R2,5 billion to R8,0 billion depending on the performance of key operating divisions. In addition, work is in progress on the means for financing an additional R21 billion to expand Transnet’s port and rail infrastructure.