Transnet asks Treasury for R35 billion to fix ports and rail by 2030

South Africa's transport minister, Barbara Creecy, says Transnet is asking the National Treasury for R35 billion (about $2.2 billion) to fund port and rail projects through 2030, on top of R13 billion already approved. The money will help pay for track upgrades and rolling stock needed for 11 new private train operators, expected to add 24 million tons of freight capacity within 18 months. Transnet is also introducing a privately run floating dock at the Port of Cape Town and a port community system to improve coordination, including for citrus exporters facing a windy shipping season. Fixing Transnet is seen as central to reviving South Africa's sluggish growth..By Ntando Thukwana and Paul Vecchiatto.South Africa’s transport minister said the nation’s state-owned ports and rail operator is seeking as much as $2.2 billion from the National Treasury for projects through 2030.“We are going to put in requests to National Treasury’s Infrastructure Budget Facility for about 35 billion rand, for projects going out to 2030,” Barbara Creecy told Bloomberg in an interview in Cape Town Thursday. The request will be in addition to the 13 billion rand Transnet SOC Ltd. has already received from the Budget Facility for Infrastructure, including 11.2 billion rand to repair iron and coal corridors as well as improve the efficiency of the Durban container terminal. .The cash will be used to finance upgrades and equipment orders that Transnet needs to turn around the company after years of underperformance and graft. Fixing the company is critical to reviving an economy that has expanded by less than 1% a year on average for more than a decade, with transport constraints repeatedly cited as a brake on faster growth.Transnet recently concluded rail access agreements with 11 new train operating companies that were allocated slots on its core network.The inclusion of the private operators is expected to introduce an additional 24 million tons of freight capacity to the network, which could be achieved over the next 18 months, she said.“Transnet will probably have to spend about 35 billion rand to upgrade railways so that the new network operators have a chance,” said Creecy. “They will have to obtain rolling stock. So I expect the hoped-for increase of 24 million tons could take place in around 18 months.”.Read more:.Grindrod, Minrail secure access to Transnet’s rail lines.Other measures the state-owned enterprise is taking to improve its performance includes plans to introduce a privately operated floating dock at the Port of Cape Town to expand ship-repair capacity and a “port community system,” Creecy said. This would involve shipping agents and owners in the operations rooms of the ports increasing coordination, she said. “This would really be helpful for the citrus fruit sector which usually needs to ship out containers during a potentially very windy season.”.© 2026 Bloomberg L.P..Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox every morning on weekdays. Register here. Support South Africa’s bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here.If you prefer WhatsApp for updates, sign up to the BizNews channel here.

Transnet asks Treasury for R35 billion to fix ports and rail by 2030

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