China to loan Transnet R46bn

daveza

daveza

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http://www.iol.co.za/business/companies/china-to-loan-transnet-r46bn-1.1492179#.UVHG8BzYJ8E

Durban - The China Development Bank will loan South African logistics group Transnet about $5 billion (R46 billion) to revamp its ageing railways, which transport commodities including coal and iron ore, a source close to the deal said on Tuesday.

“The figure may go up or down and it is a loan,” the source said, but asked not to be named. “The money will be used for railway infrastructure.”

The deal was reached before a summit of the leaders of the emerging market powers BRICS - Brazil, Russia, India, China and South Africa - opened in Durban on Tuesday with a goal of helping build the economies of Africa.

Transnet plans to invest up to 300 billion rand ($32.28 billion) over seven years to expand railway, ports and pipelines to boost exports of commodities from Africa's biggest economy.

The programme will be financed using Transnet's own resources and money raised in capital markets.

Transnet on Tuesday said the group agreed to cooperate with the Chinese bank, but did not mention any figures.

“The cooperation includes, but is not limited to, the financing of the construction and upgrade of railway, and port infrastructure, localisation of equipment manufacturing - especially rail and port,” it said.

The two parties also agreed to work together on cross-border infrastructure development throughout Africa. - Reuters
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And what did we promise in return ....
 
Would be great if they can get a reliable public transport system up and running.
 
Wonder if as much of 10% of that loan will actually be used to buy new trains?

Rest will obviously just disappear because of corruption.
 
I think they will try to sell e-body-tags to the rail passengers. And have gantries all over the rail network. Money hungry bastids
 
I hope it involves some oversight from the Chinese. The success of China in Africa has been about having a huge hand in the construction of actual infrastructure and not just the financing of said infrastructure - as would happen through western investment.

I really do hope this is not just money, because that just means somebody is going to pocket it.

Not to mention that Transnet has just so much potential to influence our economy for the good.
 
Just wait till Chinese park some destroyers off the coast of Durban, if things don't go their way. ;)
 
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