Transnet will spend a further R84 billion on increasing the capacity of the country’s ports and railways over the next three years according to the Department of Public Enterprises.

Reuters Africa on Tuesday reported that the state-owned freight logistics group does not however expect to meet a target of 330 million tonnes of freight rail by the end of the 2018/19 financial year, due to a domestic and global economic downturn, according to the DPE’s latest annual report tabled in parliament.

Transnet has been in the spotlight recently with various media reports alleging state capture, tender irregularities and possible staff retrenchments, all of which were denied by the state-owned entity.

Not all doom and gloom

Despite negative attention from the media, and criticism from the business sector for pushing for “unjustifiable” hikes in port tariffs, Transnet has remained optimistic in its outlook for the future.

Earlier this year the company said it expects to spend R273 billion over next six years, despite being downgraded by international ratings agency S&P Global Ratings.

The state-owned freight logistics group also set out to expand its port and rail infrastructure in eight African countries including Senegal, Liberia, Nigeria, Ghana, Togo, Benin, the Democratic Republic of Congo and Kenya.