By Colleen Goko
JOHANNESBURG (Reuters) -South Africa’s state-owned freight and logistics company Transnet plans to invest 127 billion rand ($7.3 billion) over five years in modernizing rail lines and upgrading ports, its Chief Executive Michelle Phillips said on Tuesday.
Transnet allocated 24 billion rand to infrastructure in the previous financial year and has budgeted 25 billion rand for the current year, Phillips said at the South Africa Tomorrow Investor conference.
“We will go to market for partners as well as for funders,” Phillips said, citing potential projects such as the Richards Bay dry-bulk terminal and the Pier 2 container concession in Durban.
Transnet, a key player in South Africa’s logistics sector, has faced challenges from aging infrastructure, which has hindered exports of key commodities such as coal and iron ore.
Phillips said that maintenance shutdowns, including a 10-day closure of the iron-ore corridor, were underway to expedite repairs across coal, manganese, and container lines, aiming to improve reliability. Port upgrades, such as the installation of new cranes in Durban, are also part of the modernisation drive.
To bolster operations, Transnet is seeking partnerships with mining firms and exporters for direct investments, while pursuing private-sector participation programmes to attract strategic partners with expertise and capital.
“We’re currently working on a formal customer-collaboration policy that allows customers, because they’ve asked for it, to step in where we feel challenged,” Phillips said. That included in areas such as funding and skills.
Future plans include finalising PSP projects, issuing an updated rail network statement for 2025/26, and granting approved train-operating companies access to the lines.
($1 = 17.3125 rand)
(Reporting by Colleen Goko. Editing by Mark Potter)
