Leonard Neill
SPOORNET IS on the lookout for strategic equity partners for its coal and iron freight lines as the first step in Transnet's restructuring plan to move away from the huge debt which it reported last month.
Public enterprises minister Jeff Radebe has announced that partners are to be found for Coal Link, the coal line from the Mpumalanga mines to Richards Bay, and Orex, the iron ore route between Sishen and Saldanha Bay.
We will initiate the process of identifying strategic equity partners for both by September 30 next year, said Radebe. The two wide gauge lines are Spoornet's most lucrative areas, with guaranteed business in the form of long-term contracts with mining houses and Iscor.
At the same time Radebe announced that Sandile Jagavula, Metrorail's managing director, has been appointed Spoornet's new chief executive.
While he did not name other divisions of the parastatal which the government is considering in its privatisation moves, Radebe said Transnet would have to undergo debt restructuring to deal with its estimated R25billion deficit. This will include an audit to determine the values of the company's liabilities. A task team to undertake this will be announced in January.
Representatives of a US-based transport company, Wisconsin International, were in South Africa recently to survey potential investment opportunities in Spoornet. Negotiations are still
in progress and no further details are available.
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