As Transnet continues to diversify funding sources for its capital investment programme, it has announced an agreement with the China Development Bank to cooperate, explore and identify opportunities for the Chinese bank for future collaboration in Transnet’s infrastructure upgrade programmes. All agreements in terms of the collaboration arrangements will be concluded in line with Transnet’s governance processes, including compliance with relevant legislation.

The cooperation includes, but is not limited to, the financing of the construction and upgrade of railway, and port infrastructure, localisation of equipment manufacturing – especially rail and port. In addition, the two agreed on future collaboration on research and development initiatives, manufacturing, marketing and the construction of cross border infrastructure throughout the continent.

Transnet Group Chief Executive, Mr Brian Molefe said: “This historic agreement between two state-owned entities within BRICS illustrate the opportunities inherent is such diplomatic ties.  The agreement will enable us to explore innovative funding options as we pursue our borrowing plan focusing on cost effective solutions and diversity.”

The agreement is one of the various country-to-country collaboration agreements intended to strengthen economic and trade relations among the different BRICS countries.