South Africa's state-owned Transnet transport giant is to spend ZAR80.3 billion (US$10.5 billion) - with ZAR20 billion spent this year - on capital projects over the next five years that will tap capital markets for ZAR37 billion, says CEO Maria Ramos.
The "big spend" is designed "to make Transnet world class transport solutions," reports South African financial news service Moneyweb.
The two big projects - widening Durban Harbour and building a pipeline from Durban to Johannesburg - are to be completed in 2010.
Durban Harbour will be widened to 225 metres and its outer channel will be deepened to 19 metres. Pier 1 container terminal capacity will be increased to 720,000 TEU. Transnet will also add another 800,000 TEU of capacity at Salisbury Island.
The Durban container terminal is being re-engineered to deal with truck congestion. The rail terminal upgrade is under way to increase capacity from 2.3 million TEU to 2.9 million TEU a year.
The Ngqura container terminal capacity of 700,000 TEU will be operational from February next year.
The project also entails increasing capacities of the Richards Bay coal line and the Sishen-Saldanha iron ore line, building the multi-product Durban-to-Johannesburg fuel pipeline and acquiring hundreds of locomotives.
Ms Ramos told media in Johannesburg that Transnet will raise ZAR13 billion from capital markets for the first two years, thereafter ZAR10 billion a year.
She said some money would be raised in foreign debt markets and the balance funded from cash flow, adding that Transnet's investment ratings have improved significantly in the past three years.
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