The Treasury says that it will not step in to repay Transnet’s debt or provide any capital for investment until it has reviewed its turnaround plan. The state-owned rail operator must also embed the National Logistics Roadmap into its own strategic plan.
The hardline on Transnet is alarming, as the company faces a R7 billion debt repayment in the coming week, with another R10 billion due for repayment by the end of March.
Transnet is in deep financial trouble and has, in the past two weeks, produced a turnaround plan that involves the Treasury taking over R61 billion of its debt and providing funding of R47 billion to fix operations.
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