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.