The sale of assets may form part of Transnet’s turnaround plan, says Andile Sangqu, chairperson of the state-owned company’s (SOC) board.
According to Sangqu, the logistics parastatal may dispose of some of its assets to raise the R50 billion required to finance its rail infrastructure maintenance.
In its integrated report for the year ended March 31, Transnet said it plans to spend R84.9bn in the next five years on infrastructure at Transnet Freight Rail (TFR), the utility’s largest operating division.
However, to accomplish this, Transnet will, out of necessity, have to generate liquidity through the sale of assets.
TFR has been under pressure for its faltering service on key rail corridors in the country, from Durban to Johannesburg, Sishen to Saldanha and the dedicated coal line to Richards Bay from the country’s coal basin in southern Mpumalanga.
The knock-on effect has been the use of road transport to various destinations, which has had a devastating effect on the country’s road infrastructure.
