Transnet: R4.1Bl foreign currency bond to help fund expansion
Speaking on the sidelines of an American Chamber of Commerce event, Logistics group Transnet's CEO Brian Molefe announced that the group plans to issue a foreign currency bond of at least $500m (R4.1Bl) this financial year to help fund its expansion programme. Transnet's current financial year ends in March 2013, the Mail and Guardian reports.
Molefe added that the company will eventually manufacture its own trains and locomotives. "Transnet will be equipped with the knowledge and skills to be an equipment manufacturer," he said. A manufacturing plant was set up in Transnet's Rail Engineering's site in South Africa, and the group began ordering parts for local assembly rather than complete locomotives, says the Mail and Guardian. Some parts, such as wheels, were already manufactured locally.
"We have put in an order for cranes for our port terminals, and we are looking to conclude a similar agreement here," he said. According to the Mail and Guardian, Transnet would also insist that maintenance is carried out in South Africa.
Read the full article on mg.co.za
