Transnet to invest R163bn in infrastructure over 5 years Featured

Transnet to invest R163bn in infrastructure over 5 years

The most significant investment is buying locomotives with an eye to a rise in general freight volumes and the solidifying of the ‘road to rail’ strategy.

Transnet says it expects to invest R163,7 billion over the next five years with the aim of aggressively growing volumes and also seeking new markets to compensate for lower growth expected within its traditional markets.

The  State-owned logistics company has already spent R165.6 billion investment under its  infrastructure investment programme – the Market Demand Strategy (MDS) – in the past six years, with R21.8 billion being spent just this past year.

This as Transnet reported a revenue increase of 11.3 percent to R72.9 billion for the year ended 31 March 2018, up from R65.5 billion the previous year, driven by a rise in railed export coal volumes, and an increase in railed automotive, container volumes and port container volumes.


Transnet said the most significant investments was the acquisition of the controversial locomotives to modernise its fleet in anticipation of a rise in general freight volumes and the solidifying of the “road to rail” strategy.

“As at 31 March 2018, the cumulative expenditure incurred on the 1 064 locomotive contract amounts to R30.1 billion, with R7.3 billion spent in the year under review. A total of 402 locomotives have been accepted into operations while 16 have been delivered and are currently undergoing acceptance testing,” it said.

Transnet said its procurement activities contribute directly to the growth and economic transformation of South Africa and can result in the increase of the number of previously disadvantaged individuals who manage, own and control businesses.

The logistics firm also reported R8.1 billion in irregular expenditure for the year ended 31 March 2018, up from R692 million in the previous financial year, due to the company reviewing contracts from as far back as 2009 and identifying the procurement issues in these results.

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