Transnet gets R51 billion government guarantee boost to continue with recovery plan

MINISTER of Transport Barbara Creecy has approved a R51 billion guarantee facility for Transnet, effective immediately, in a bid to bolster the State-owned freight and logistics group.

- SIPHELELE DLUDLA

This financial backing, which was granted with the concurrence of the Minister of Finance, aims to support Transnet’s vital capital investment programme and assist the entity in meeting its debt obligations amidst ongoing reforms.

Transnet's significance cannot be understated; it serves as a cornerstone of the South African economy, playing a critical role in facilitating the government’s goal of inclusive growth.

Currently, Transnet is undergoing a comprehensive reform programme designed to enhance its operational performance as it strives to address longstanding financial, operational, and governance challenges that have impeded its ability to deliver on its strategic mandate.

As part of its trajectory towards improvement, Transnet reported a successful record of transporting the equivalent of 161 million tons of freight on its rail network by March 2025.

Notably, the entity had also released its 2024/25 Network Statement by December 2024, which introduces private sector operators into the freight rail domain. Anticipation builds as announcements of the first successful bidders are expected to be made by the end of July.

In a continued effort to promote private investment, the Department of Transport issued a Request for Information (RFI) earlier this year for private investors focusing on five pivotal freight corridors and associated ports.