According to Allafrica.com, Transnet chief executive Brian Molefe said that South Africa is on track to become a manufacturer of locomotives for the rest of Africa.
Briefing the Portfolio Committee on Economic Development on the parastatal's R300 billion market demand strategy, Molefe said the R4 billion that Transnet planned to spend over the next seven years on research and development in rail and ports equipment would help develop a local locomotive manufacturing industry. He said Transnet has targeted to purchase locally 62% of the goods and services required for its new infrastructure projects.
Detailing Transnet's market demand strategy, Molefe said the parastatal had invested R118 billion in infrastructure in the last seven years, but would almost triple this to R300 billion in the next seven years. The parastatal will also expand the tonnage of iron ore and coal transported for export, while increasing the number of containers handled from 4.3 million to 7.6 million. Last year, he said, Transnet invested R24.6 billion as part of the R300 billion programme and would this year invest R31.2 billion, with investments peaking at R56.3 billion in 2016/17. Allafrica.com reports that Molefe said that about 99 000 jobs are expected to be created during the current financial year, peaking at 136 000 in the 2016/17 year, and totalling about 588 000 jobs over the next seven years.
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