The government has agreed to give ailing state-owned logistics group Transnet a R51bn guarantee facility, the transport ministry said on Thursday.
Transnet has struggled to provide adequate freight rail and port services for years because of equipment shortages and maintenance backlogs linked to underinvestment, with cable theft and vandalism also damaging the rail network.
The support package comprises a R41bn guarantee for Transnet’s funding requirements in the 2025/2026 and the 2026/2027 financial years and a R10bn guarantee to help it service debt and make capital investments.
Transnet said the support would allow it to build on progress with strategic rail and port reforms.