Transnet Freight Rail (TFR) has a capital investment shortfall of R80 billion over the next five years to restore its operations, top company executives told a National Treasury webinar on Friday.
The state-owned rail freight company projects dramatic shortfalls for rail infrastructure, wagons and locomotives. It projects that the funding requirements over the next five years to restore operations is around R111 billion, while the corporate plan anticipates it will have R30 billion available.
A request to the Treasury for a substantial capital injection – believed to be R40 billion – was turned down by Finance Minister Enoch Godongwana in October. Instead, Transnet got R5.8 billion, of which half was to be used to repair flood-damaged infrastructure and a half to buy spare parts for locomotives.