TRF wants R100bn from private investors

Transnet has to raise at least R100 billion from private investors over the next seven years. This is in addition to the R312 billion being invested through its market demand strategy. According to Siyabonga Gama, CEO of Transnet Freight Rail, the R100 billion is the shortfall from the MDS and is essential to achieving the goals of the organisation in terms of infrastructure delivery. Speaking at a media function he said the money was required for rapid loading systems and consolidated terminals – allowing the organisation to improve its efficiency significantly. At least a third of the MDS’s R312 billion is being raised on capital markets while two thirds of it is generated from existing operations. “The private sector sits on a pile of cash. We’d like to leverage private capital. We have a shortfall of some R100bn in the logistics system,” he said. He said investing, however, would not see lines handed over to the private sector. “Transnet will retain strategic control of the network in order to lead and direct infrastructure investment,” he explained indicating that private investors' funds would be used to unlock the coal in the Waterberg, increasing capacity of the heavy-haul link in that region as well as contributing towards the new dig-out port being planned for Durban. “There are many opportunities for the private sector on branch lines as well where investment is also required,” said Gama. “This could be anything from them operating a tourism steam train as is the case on one of the branch lines at the moment to haulage of commodities.