ABN - South African state-owned freight logistics group Transnet will invest a further US$6 billion on increasing capacity at ports and railways across the country over the next three years.
Transnet’s investment decision was announced by the Department of Public Enterprises (DPE) in an annual report tabled in South African parliament.
However, the company does not expect to meet a target of 330 million tonnes of freight rail by the end of the 2018/19 financial year, citing a domestic and global downturn.
The logistics company had its credit rating downgraded by international ratings agency S&P Global Ratings, mirroring South Africa’s downgrading to junk status by the same organisation at the start of the year.
Nonetheless, Transnet is also set expand its port and rail infrastructure in eight countries across the continent including Senegal, Liberia, Nigeria, Ghana, Togo, Benin, the Democratic Republic of Congo and Kenya.
The firm also recently announced a 10-year coal export transportation agreement with South African diversified miner Exxaro Resources.