Transnet has secured a R2.8-billion loan from Germany’s KfW Development Bank to fund part of its locomotives acquisition programme.
The funds will be used for the purchase of 240 electric locomotives it will build with Bombardier in its manufacturing facilities in Durban. In all 1064 new locomotives will be added to the fleet.
Siyabonga Gama , acting group chief executive, and Dr Jan Martin Witte, KfW’s head of infrastructure in southern Africa, signed the agreement at Transnet’s head office in Johannesburg yesterday.
In March 2014, Transnet awarded a contract for the building of 1064 diesel and electric locomotives to four global original equipment manufacturers. The company awarded contracts to CSR Zhuzhou Electric Locomotive and Bombardier Transportation to build 599 electric locomotives and General Electric Technologies and CNR Rolling Stock to build 465 diesel locomotives.
All except 70 of the locomotives will be built at Transnet Engineering’s plants in Koedoespoort, Pretoria and Durban.
Two weeks ago, Transnet concluded a R30-billion loan facility agreement with China Development Bank (CDB) for funding 232 diesel and 359 electric locomotives it is building with China North Rail and China South Rail respectively.
Transnet secures R2.8bn loan for 240 more locos
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