| Code: 45257 |

TIN news:        South African rail operator Transnet has raised $1.1bn in funding for its locomotive acquisition programme, the biggest rail recapitalisation programme in the country's history.
 
The operator received the current financial support in two agreements with funders and financial institutions, including Barclays Africa, Investec, Standard Bank, Old Mutual and Export Development Canada.
 
In March last year, Transnet entered into a $4.26bn agreement to buy 599 electric and 465 diesel locomotives from General Electric, China North Rail, China South Rail and Bombardier Transportation.
"This new funding will be allocated for the Bombardier and GE portions of the locomotive acquisition programme."
 
This new funding will be allocated for the Bombardier and GE portions of the locomotive acquisition programme.
 
Under the first agreement, the South African rail company received R6bn ($512.16m) US-Exim Bank funding guarantee for 293 locomotives to be built by General Electric.
 
The second funding agreement provides a R6.99bn ($596.67m) loan facility for the locomotives from Bombardier.
 
Transnet said that these agreements are in line with the company's funding strategy as it relates to its focus on diversifying sources of funding and raising debt cost-effectively.
 
Being purchased as part of the company's market demand strategy, the new units of locomotives will renew its existing fleet of 2,400 locomotives.
 
Bombardier and GE portions have completed the technical design of the locomotives and the first locomotive of Bombardier is expected to be rolled out in July this year.
 
China South Railways has also completed the technical design of the locomotives and its first prototype will roll off the production line at the end of this month, Transnet said.

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