Home South African Budget 2024: Private partner secured to upgrade Pier 2 of Durban Container...

Budget 2024: Private partner secured to upgrade Pier 2 of Durban Container Terminal to help solve logistical issues

196

South Africa’s Finance Minister, Enoch Godongwana, delivered his budget speech to the nation in Parliament on Wednesday.

The Durban Container Terminal. File picture

SOUTH Africa’s Finance Minister, Enoch Godongwana, delivered his budget speech to the nation in Parliament on Wednesday.

The minister said that to address South Africa’s increasingly unreliable logistics system, Cabinet approved the Freight Logistics Roadmap in December 2023.

“The roadmap outlines immediate steps needed to improve port equipment, locomotive availability and network security. It also sets out a clear path for enhancing efficiencies, facilitating the introduction of competition and leveraging the financial and technical support of the private sector. In this regard, third-party access to the freight rail network will be introduced by May 2024,” he said.

Godongwana further said that a private partner has been secured to upgrade Pier 2 of the Durban Container Terminal.

“This should increase private investment in equipment, enhance technological capability and improve operational efficiency. Government has provided Transnet with a R47 billion guarantee facility to support the entity’s recovery plan and meet its immediate debt obligations. Like Eskom, the guarantee comes with conditions. These conditions require Transnet to focus on its core activities, and for the entity to introduce private sector partnerships. This will improve Transnet’s sustainability and support the implementation of the roadmap,” he further said.

* Read Finance Minister Enoch Godongwana’s full Budget Speech here

– BUSINESS REPORT

Previous articleBudget 2024: Godongwana announces sin tax increases, this is how much more it will cost for tobacco and alcohol
Next articleBudget 2024: Two-pot retirement will be implemented from September 1