Transnet secures US deal for locomotives
by MTHULISI SIBANDA
JOHANNESBURG – TRANSNET, South Africa’s the rail, ports and pipelines operator, Transnet has secured a R6 billion funding guarantee with United States export credit agency, US-Exim for the funding of diesel locomotives.
The company is buying the locomotives from General Electric (GE).
Brian Molefe, Group Chief Executive of Transnet, said this was a massive
thumbs-up from the international investor community, affirming Transnet’s
creditworthiness and South Africa’s attractiveness as an investment destination.
“The agreement confirms the continued attractiveness of Transnet’s portfolio of projects, the company and South Africa among major investors. Crucially, it is in line with the company’s agreed funding strategy which is premised on diversifying sources in a cost effective manner,” he said.
In March this year, Transnet announced an agreement to purchase 599 electric and 465 diesel locomotives from four original equipment manufacturers, including General Electric.
The guarantee is mainly intended for GE’s share of the locomotives – which is 233 locomotives as well as other acquisitions from the manufacturer.
The locomotives are part of Transnet’s locomotive fleet renewal programme – a key element of the company’s seven-year R312 billion investment programme – The Market Demand Strategy.
The majority of the locomotives are built at Transnet’s engineering and manufacturing facilities throughout South Africa and include stringent supplier development, skills development and localisation requirements, in line with government policy.
– CAJ News
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