TFR gets lion’s share of Transnet’s R3bn capex

As this issue went to press on Monday morning, Transnet announced the launch of its seven-year, R300-bn capital projects programme, expected to create up to 588 000 new job opportunities across the economy. The MDS is aimed at expanding South Africa’s rail, port and pipelines infrastructure, resulting in a significant increase in freight volumes, especially in commodities such as iron ore, coal and manganese. It will also lead to a significant modal shift from road to rail, GCE Brian Molefe said. The MDS is the centrepiece of government’s growth strategy through investment in infrastructure and a key component of enabling the aspirations of the New Growth Path (NGP), he added. “The MDS will catapult Transnet Freight Rail (TFR), which has the lion’s share of the investment programme, into the world’s fifth biggest rail freight company. Rail volumes will increase from approximately 200 million tons to 350 million tons during the period. By 2019, TFR will increase its market share of container traffic to 92% from 79% currently,” he said. Where the money will be spent: ● R205 billion will be allocated to rail projects and R151 billion to general freight to support the growth in volumes to 170 million tons per annum (mtpa) ● Expansion of export coal from 68mtpa to 97.5mtpa ● Expansion of iron ore exports from 53mtpa to 82,5mtpa ● Container volumes handled through the ports to increase from 4.3 million to 7.6 million TEUs. ● Investment in the final phases of the New Multi- Product Pipeline.