Transnet borrows US$293 million

Transnet has acquired a ZAR2.2 billion (US$293.3 million) loan from the Agence Francaise de Developpement Group (French Development Bank) (AFD) to partly finance Transnet's ZAR4.6 billion programme to expand the Cape Town Container Terminal.
The loan will be rolled out over 15 years, with a three-year capital grace period, reported the Shipping Gazette citing the Port Elizabeth Herald.
Transnet's acting group chief executive Chris Wells said at the signing ceremony at the Cape Town port for the loan: "This is by far the largest single funding initiative for one project. Apart from being a vote of confidence to Transnet's sound management of its investment programme, especially the rigorous risk management framework, it is also a testimony to the attractiveness and bankability of all the projects we are undertaking as part of our five-year capital programme."
The expansion, which will increase the port's container terminal capacity to 1.4 million TEU per annum by 2012, forms part of Transnet's ZAR80 billion investment programme. The work involves the deepening of the entrance channel, the basin, the refurbishment of the berths, the replacement of container handling equipment and acquisition of new equipment. It also involves the reconfiguration of onshore areas to provide additional stack capacity and to improve land access, a statement from Transnet said.
On the sidelines of the signing ceremony, Mr Wells said container traffic handling at Port Elizabeth has fallen at double the rate of the national average of 14 per cent during the global economic crisis. However, it was now decreasing by "single-digit" figures, with the figures for each month getting better, and there had also been an improvement in rail freight revenue, reported the Herald.
"We have seen the turnaround, but we do not know how strong it will be and for how long it will go on," said Mr Wells.

Source:  Transport Weekly