Transnet seeks urgent funding to address South Africa's rail infrastructure challenges - Creecy

TRANSPORT Minister, Barbara Creecy, has revealed that Transnet has approached the National Treasury for significant short-term infrastructural development funds in a bid to tackle deep-rooted challenges within South Africa's rail system.

- BANELE GININDZA

This appeal for funds required in July and October aimed to expedite tonnage haulage and improve revenue generation for the struggling rail entity.

Appearing on the PSG Wealth Think Big interview on Tuesday, Creecy highlighted these urgent financial requests amid rising concerns expressed by Moody's Ratings agency last month.

The agency pointed to Transnet's unsustainable capital structure, deteriorating liquidity position, and the lack of clarity on future government support, compounded by slower-than-anticipated operational improvements.

Creecy stated that concerns would persist without new investments in rail infrastructure, hence Transnet has put in a request "to the budget facility for infrastructure, for both the July and October windows".

Though a lot of figures for the total investment had been bandied about, some up to R200 billion, Creecy did not state how much Transnet had requested but said it was “a significant amount of money” as South Africa's rail infrastructure was playing 20-year catch up on developed economies.