Transnet Looks for Private Investors for Infrastructure Reasons

Transnet Looks for Private Investors for Infrastructure Reasons

  • Transnet is looking to request for information (RFI) regarding private investors with regards to its Durban port
  • The group is looking to expand the Durban port within the next year but the expansion will cost around R100 billion
  • Transnet is only capable of paying around R3.5 billion for the lengthy and pricey expansion project at the moment

PAY ATTENTION: Click “See First” under the “Following” tab to see Briefly News on your News Feed!

Transnet recently stated that it will be putting a request through for information (RFI) regarding private sector investors. This will be with regards to its Durban port as Transnet is looking to broaden the facility within the next 10 years.

On Monday, CEO Portia Derby said that the entire project would cost them around R100 billion but that the group would not be able to pay that. Board Chairperson Popo Molefe stated that although they are looking for private partners for the infrastructure, this does not mean they will privatise the group.

Read also

Telkom says Netflix deal will not be renewed for its smart TV device

Transnet, issues, RFI, request for information, private investors, Durban port
Transnet is putting a request for information through regarding private investors assisting it with infrastructure: Image: RAJESH JANTILAL/AFP
Source: Getty Images

According to EWN, Transnet wants the Durban port to become a 'super terminal'. This means it will be handling large vessels which will also assist in improving efficiency. The group will only be able to put R3.5 billion into the project.

A report by Mail & Guardian stated that Derby said the RFI's are put in place to test the appetite of the market as they are still in a negotiation process. Derby stated that it will be a continuous discussion and that they would have to work through with unions to come to a conclusion of what would be the most beneficial partnership.

Enjoy reading our stories? Download the BRIEFLY NEWS app on Google Play now and stay up-to-date with major South African news!

Molefe responded to criticism by stating that they would continue to own assets but will be inviting the private sector to take part in projects (involving infrastructure) that Transnet is embarking on.

Read also

Almost R45b worth of pension funds in SA’s retirement industry lie unclaimed

Transnet's port terminals hacked, ships bypass South African ports

Previously, Briefly News reported that due to a cyberattack, Transnet Port Terminals had to declare a force majeure to their customers. The cyberattack has affected Transnet's entire operations.

According to a report by TechCentral, Transnet Port Terminals had previously downplayed the severity of the cyberattack; however, this changed on Monday because the port terminal was unable to carry out its operations.

The implication of Transnet's force majeure (unforeseeable circumstances that prevent an entity from fulfilling a contract) has been that ships have now started to bypass ports in South Africa. Many are being rerouted to Port Maputo while other ships have been skipping the African continent completely, according to a report by Business Insider.

This has had a devastating impact on importers who are unable to receive essential cargo for their business operations and will have to wait a considerable amount of time to access containers.

Source: Briefly News

Online view pixel