Transnet annouced that had received the backing of leading American and Canadian development funding agencies for its purchase of more than 500 diesel and electric locomotives from General Electric and Bombardier Transportation respectively, reports Engineering News.
The support had been extended in the form of two separate funding agreements, worth a combined value of R13 billion (USD 1.1 bn) and backed by leading South African financial institutions.
The Export-Import Bank of the US extended a R6 billion (USD 507.8 million) guarantee for 293 General Electric locomotives.
The second agreement involved a R6.99 billion (USD 591.6 million) loan facility for the Bombardier locomotives.
In what was Export Development Canada’s first-ever rand-denominated loan, the agency provided R5.24 billion (USD 443.5 million), with South Africa’s Investec Bank contributing the R1.75 billion (USD 148 million) balance.
In March 2014, Transnet launched R 50 billion (USD 4.2 billion) programme for the acquisition of 1064 locomotives. The purchase was split four ways, with General Electric South Africa Technologies and CNR Rolling Stock South Africa, to supply 233 and 232 diesel locomotives respectively, and CSR Zhuzhou Electric Locomotive and Bombardier Transportation South Africa to supply 359 and 240 electric locomotives apiece.