State-owned freight group Transnet and China Development Bank on Tuesday agreed to “cooperate, explore and identify” collaboration opportunities on Transnet’s R300-billion infrastructure upgrade programme.
The agreement, signed by the parties at the Union Buildings in Pretoria, on Tuesday, included the financing of the construction and upgrade of railway and port infrastructure, as well as the localisation of equipment manufacturing – especially rail and ports.
This would enable the State-owned entity to explore innovative funding options focusing on cost-effective solutions and diversity as part of its efforts to diversify funding sources for the capital investment programme.
About two-thirds of the required R300-billion funding would be raised from internal resources, while the remainder would be raised through various sources in the debt capital markets.
Transnet and China Development Bank also agreed to join forces on research and development initiatives, manufacturing, marketing and the construction of cross-border infrastructure throughout the continent.
“This historic agreement between two State-owned entities within Brics illustrate the opportunities inherent in such diplomatic ties,” said Transnet CEO Brian Molefe in a statement.
The agreement was one of the various country-to-country collaboration agreements intended to strengthen economic and trade relations among the different Brics countries, Transnet pointed out.