Transnet secures R5bn loan from Brics bank
Transnet has secured a R5bn loan from the New Development Bank, established by the Brics group of emerging economies. The loan, which will be guaranteed by the South African government, was announced by director general, Duncan Pieterse during a meeting of the New Development Bank in Cape Town.
Source: Archive
Transnet is saddled with about R130bn in debt and has struggled to provide adequate freight rail and port services because of equipment shortages and maintenance backlogs after years of under-investment.
Transnet's chief executive said the money from the Brics bank would be used for the company's turnaround plan.
"There is lots of work to be done in Transnet, we've got major challenges. We need to sort it out and that's what we need the money for," Transnet CEO Michelle Phillips said.
Source: Reuters
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Reporting by Wendell Roelf; Writing by Bhargav Acharya; Editing by Alexander Winning.
