Transnet makes major impact in Africa

Alan Peat BUSINESS IN Africa is proving bountiful for the transport parastatal Transnet which is now Africa’s largest transport and logistics undertaking. Among the African countries in which it is investing are Mozambique, Zimbabwe, Ivory Coast, Senegal, Zambia, Tanzania, Algeria, Ghana and Gabon; and nine of its business units - Portcon; Spoornet; Protekon; Transwerk;Transtel; freightdynamics; Autopax; and Viamax - are active on the continent. This year the group’s annual financial statements showed increased revenues from the rest of Africa. Already some 13% of SAA’s revenue, and 10% of Spoornet’s is generated from the continent. Spoornet’s leasing agreements with eight African countries, for example, generates about R89-million a year, while work with the Zambian Railway Corporation on the rehabilitation and operation of the rail links between the port of Maputo in Mozambique and Zambia will generate more than R650-million in dividends over the 20-year project term. Nepad project It is also involved in a New Economic Plan for African Development (Nepad) project with Zambia, Zimbabwe and Mozambique to build rail infrastructure - including bridging the Beira to Benguela corridor (a 300-kilometre gap between Angola and Mozambique) with a railway line. SAA, meantime, has identified Africa as a key for future growth and it is planning to establish hubs in West and East Africa. Significant progress has already been made with the acquisition of a 49% stake in Air Tanzania, and new destinations to Addis Ababa and Dakar having been introduced. On the port side of Transnet’s business, Portcon is involved with the International Maritime Organisation (IMO) mission to improve navigational aids in Uganda on Lake Victoria while in Kenya it has finalised an agreement to consult for the port of Mombasa on the interim and future improvements to its container handling facilities. Meantime, in Angola, Spoornet, Transtel, Protekon and Portcon are negotiating with the government to provide technical assistance for the railway and port operations - and, similarly, in Ghana and Nigeria, Spoornet, Protekon and Portcon are negotiating with the governments for railway and port concessions.