Transnet raises investment forecast.
TRANSNET, South Africa"s state-owned transportation company, is finalising a five-year plan to invest around Rand93.4bn ($12.5bn) in new pipelines, ports and railways to meet rising demand in Africa"s largest economy.
Acting chief executive Chris Wells indicated that future investment will require ?significant? funding from abroad, adding: ?We have just listed our global medium-term bond program,? which will enable Transnet to sell bonds in the US and Europe.
In December last year, Transnet said it would raise up to $1bn in a bonds issue by the first quarter of 2010, to fund expansion projects.
The revised investment for Johannesburg-based Transnet is an increase on previous estimates of Rand80.5bn to be spent on capital projects in the five years through March 2014, compared with Rand74bn in the last five fiscal years.
The programme, set to be unveiled by the end of this month, will include a number of additional projects, while several existing ones will be expanded, said Mr Wells.
In the current fiscal year, Transnet expects to invest Rand21.9bn, including Rand10.6bn in rail projects, Rand6.7bn in ports and Rand4.4bn in pipelines, according to a written presentation.
Investment of Rand19.4bn is planned for fiscal 2011 and Rand16.3bn in fiscal 2012.
Mr Wells has recently indicated that investment will be focused on new or upgraded locomotives and wagons for the Transnet"s key commodity supply chains for iron ore and coal.
Transnet plans to invest in construction of a rail line to the Waterberg coal reserves in South Africa"s Mpumalanga province.
The group is also expanding the annual capacity on the iron ore railway lines to 60m tonnes from 47m tonnes and said it would raise the capacity of the coal lines to 81m from 72m by June this year.