South Africa: Transnet announces infrastructure upgrades
14 June 2012
Transnet SOC Ltd, the state transport company of South Africa, is to pump as much as 300 billion rand (£22.9 billion) into upgrading its railways, ports and fuel pipelines infrastructure, it has been confirmed.
The overarching purpose of the work is to ensure that South Africa is able to make the most of its mineral wealth.
President Jacob Zuma has announced plans to double Transnet's freight capacity within the next seven years. Consequently, the amount of coal the country is able to carry will jump from 44 per cent to 54 per cent.
"Capacity has been a major constraint," Asief Mohamed, the chief investment officer of Aeon Investment Management, told Business Week.
"With the committed expansion by Transnet, mining companies would be able to increase volumes, which would be good for earnings."
In 2010, Citigroup said that south Africa's mineral resources were worth as much as £1.6 trillion.