en.Wedoany.com Reported - South Africa's Transnet has signed a €300 million loan agreement with the French Development Agency (AFD), with the funds linked to a series of operational milestones, including the rehabilitation of key railway corridors and the improvement of freight operations.

The loan supports the "Transnet Freight Decarbonisation and Corporate Sustainability Programme," which includes the rehabilitation of 550 km of railway along the Cape Town Corridor and the Container Corridor to improve reliability and enable the shift of freight from road to rail. The disbursement of funds is contingent upon Transnet achieving a series of agreed milestones, including the modernization of core transport operations. The agreement also provides for strengthening Transnet's business diversification, including exploring green hydrogen and transition mineral logistics, as well as preparing for the procurement of 30 MW of renewable energy.

Transnet Group Chief Executive Michelle Phillips stated that the funding will support the company's infrastructure and operational objectives. "Transnet remains committed to modernizing its rail and port infrastructure and operations to improve service quality, reliability, and competitiveness, while advancing sustainable growth as part of its 'Reinvent for Growth' strategy. This funding will help achieve these goals by enhancing energy efficiency and accelerating reforms."

Marie-Hélène Loison, AFD's Regional Director for Southern Africa, said: "Transnet is a strategic player in South Africa's low-carbon transition and a key enabler of economic competitiveness. Investments in freight rail recovery, port modernization, and transition mineral export corridors demonstrate that South Africa's economic competitiveness and decarbonisation goals are inseparable." The agreement is part of France's contribution to the Just Energy Transition Partnership in South Africa, implemented by AFD since 2021.

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