Project Summary

Project General Description

The project involves the provision of a senior unsecured loan to Transnet State-Owned Company Limited, an integrated transport and logistics company in South Africa, for its 7-year rolling capital expenditure program (CEP). Transnet is 100% owned by the Government of South Africa (GoSA), but is legally and financially autonomous. It's responsible for ensuring that the country’s transport and logistics system operates according to international standards. Transnet’s capital expenditure program (CEP) is focused on catalyzing economic growth and job creation in South Africa and the wider region. The program will improve productivity and consumption activity by connecting businesses to local and international trade. In rural areas, the program will result in cost effective and reliable transport for agricultural products, thereby supporting food security and rural employment. It’s involves investment of approximately ZAR 312.2 billion (US$ 27.5 billion) over seven years from 2013 to 2020 to repair, upgrade and expand infrastructure in order to improve South Africa’s efficiency and competitiveness in the transport sector. Approximately 51% of the total investment is intended for repair or replacement of existing infrastructure, while the balance will be used to build additional capacity.

Project Objectives

The main objective of this project is to support the Transnet’s capital expenditure program, South Africa’s rail company. This support is to allow Transnet to increase its general freight capacity, addressing Transnet’s and the Government of South Africa’s plan to migrate freight from road to rail. This will modernize the rolling stock fleet, improve operational efficiency, and position the company as strategic regional player.

Beneficiaries

The main beneficiaries of the project are: the Government of South Africa (GoSA) and the Transnet State-Owned Company Limited.

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