It’s equivalent to around four months of interest payments.
The African Rail Industry Association estimates that about R150bn is required to fully restore and enhance SA’s rail network. Image: Dean Hutton/Bloomberg
In late 2023, National Treasury extended a R47 billion guarantee facility intended to support Transnet’s business recovery plan, including settling its immediate debt obligations. That guarantee also gave comfort to the two development banks that their funds were safe. Industry analysts point out that Transnet is in a debt spiral without a serious plan to get out of it. The only solution is to grow revenues and reduce costs, starting with the staff headcount.
“And I say it with respect. I’m a great fan of Michelle . She’s doing her best. But my advice to her would now be to prepare for this restructuring. And my advice to the shareholder, the Department of Transport, the Presidency and National Treasury that helped to create this mess, is to do their jobs and fix it.”
Kumba, like other bulk commodity exporters using the rail network, has started to partner with Transnet to solve critical rail bottlenecks.
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