<\/p>\n
Transnet and France, through Agence fran\u00e7aise de d\u00e9veloppement (AFD), have signed a \u20ac300 million loan agreement (valued at around R5.86 billion at the current exchange rate) in a bid to ramp up the state-owned ports and freight company\u2019s decarbonisation drive.<\/p>\n
The French development financier and Transnet announced the deal on Tuesday, saying in a joint statement that it is part of contributing to\u00a0\u201ca more resilient and efficient South African economy in the face of climate change\u201d.<\/p>\n
Read\/listen:
Johannesburg woes deepen as key French funder rejects loan request
How far has SA\u2019s Just Energy Transition progressed?<\/p>\n
With Transnet a key player in SA\u2019s logistics network, AFD sees the group as an enabler in SA\u2019s much-vaunted Just Energy Transition Investment Plan (JET\u2011IP).<\/p>\n
The loan is aimed at improving Transnet\u2019s operational efficiency, enabling a transition to a low-carbon operating model aligned with the JET-IP, and enhancing the company\u2019s long-term financial sustainability.<\/p>\n
ADVERTISEMENT<\/p>\n
CONTINUE READING BELOW<\/p>\n
\u201cThe investments in freight rail recovery, port modernisation and transition minerals export corridors are a demonstration that South Africa\u2019s economic competitiveness and decarbonisation goals are inseparable,\u201d says Marie-h\u00e9l\u00e8ne Loison, AFD\u2019s regional director for Southern Africa.<\/p>\n
Transnet, which operates the country\u2019s main ports and rail freight lines, has been a major constraint to SA\u2019s economic growth over the past decade.<\/p>\n
While the company still has many challenges, its management is upbeat that the implementation of much-needed reforms will turn things around.<\/p>\n
Read\/listen:
Rail master plan will cost almost R2trn over 30 years
Transnet signals turnaround as private operators enter rail and ports
AFD sees others adding to \u20ac400m South Africa climate loan<\/p>\n
ADVERTISEMENT:<\/p>\n
CONTINUE READING BELOW<\/p>\n
Unlike traditional project finance, where loan proceeds are allocated to specific investments, this loan is said to give Transnet the flexibility to deploy funds across a widely defined programme, that will allow it \u201cto respond dynamically to its evolving business needs\u201d.<\/p>\n
The loan conditions are dependent on what\u2019s been termed as mutually-agreed milestones, including:<\/p>\n
Modernisation of core transport operations to improve service quality and reliability. This will be achieved through the rehabilitation of 550 km of rail along the Cape and container corridors, improving reliability and enabling a shift of freight from road to lower\u2011carbon rail transport;
\nEnhancement of Transnet\u2019s strategic business diversification (explore green hydrogen and transition minerals logistics to replace anticipated decline in coal volumes);
\nPreparation for procurement of 30 MW of renewable energy, to support the pathway to net-zero emissions; and,
\nStrengthening of Transnet\u2019s ESG capacities.<\/p>\n
\u201cThis funding will assist in achieving these objectives by enhancing energy efficiency and accelerate reforms,\u201d says Transnet Group CEO, Michelle Phillips.<\/p>\n
Read:
Transnet receives R16.1bn to improve the state of its network
Can SA finally deliver a credible rail recovery?<\/p>\n
#Transnet #secures #R5.86bn #French #loan #decarbonisation #drive<\/p>\n","protected":false},"excerpt":{"rendered":"
Transnet and France, through Agence fran\u00e7aise de d\u00e9veloppement (AFD), have signed a \u20ac300 million loan…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[4],"tags":[11051,3654,1078,1966,11050,2495,8293],"_links":{"self":[{"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/posts\/5579"}],"collection":[{"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5579"}],"version-history":[{"count":0,"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/posts\/5579\/revisions"}],"wp:attachment":[{"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5579"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5579"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5579"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}