R3bn loan to help revitalise rail infrastructure

Transnet claims to be investing
R93.4-billion over the next five
years, of which R40.8 billion is
being spent on upgrading freight rail
infrastructure and rail engineering.
The upgrading of the freight rail
infrastructure is key to the objective
of shifting more freight from the
road network to the rail network, as
well as finding the balance between
road and rail in respect of the
transportation of goods.
In a sensible and far-sighted bid to
create sustainable capacity ahead of
the demand for that sort of volume,
the much-maligned parastatal has
secured a R3-billion loan from the
African Development Bank which it
says will enable it to ‘revitalise and
expand vital rail infrastructure.’
Aimed at stimulating trade,
facilitating regional integration
and ensuring sustainable economic
growth, the Bank said that the loan,
which forms part of Transnet’s R93.4-
billion capital investment programme,
would enable the parastatal to ‘reduce
the cost of doing business in South
Africa to internationally competitive
levels.’ National roads body sanral,
responsible for the national road
network of some 16,750 kilometres,
claims that about R70-billion will
be spent in the next three years on
road infrastructure, maintenance
and upgrading, with an additional
R3-billion earmarked for provision of
and improvements to access roads.