Mar 24, 2017 Last Updated 10:30 AM, Mar 24, 2017

Transnet acquires $230m loan for locomotive acquisition

ABN – Germany’s KfW Development Bank will loan Transnet R2.8 billion (US$230 million) for South Africa’s biggest ever locomotive acquisition.

The loan will mature in 15 years and will have a five-year grace period in which Transnet will only pay interest.

Transnet will use some of the funds for its $1.2 billion locomotive construction contract with Bombardier (TSX: BBD.A).

Over R300 billion will be invested by Transnet in the expansion of railways, ports and pipelines by 2019.

Locomotives will be ordered from General Electric, Bombardier and two Chinese firms.

@ABNetworkOnline

South Africa constructs new vehicle bridge

ABN – A ceremony has been held in South Africa to mark the commencement of a R78 million (US$6.4 million) vehicle bridge project.

The bridge will link the community of Mdlebeni in KwaDukuza to Mankenganeni in uMlalazi Municipality.

It is hoped that the new bridge will increase tourism and economic activity between the two municipalities.

Previously Mdlebeni and Mankenganeni inhabitants had to cross a two and a half metres deep, crocodile infested-river to access essential services.

@ABNetworkOnline

Dangote announces Asian expansion

ABN – Aliko Dangote has announced plans to expand his cement empire to Asia over the next two and a half years.

Dangote Cement (NSE: DANGCEM) is currently constructing a factory in Nepal, which is expected to come into operation by the end of 2017.

Around US$400 million will be invested in Asia by Dangote for the construction of the two million tonne cement plant.

Dangote said: “It’s going to be one of the first factories for us to build outside our comfort zone, outside Africa.”

Nepal was recently hit by a 7.3 magnitude temblor and the government estimates that reconstruction costs will exceed $10 billion.

Dangote added: “It will be a major boost for them, especially with what happened.

“They don’t produce cement at the moment, they import mainly from India.”

@ABNetworkOnline 

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