Picture: for illustration purposes
The Development Bank of Southern Africa (DBSA) teamed up with Transnet SOC Ltd with ambitious aspirations to rejuvenate the declining South African state ports and freight-rail services. Transnet's inability to self-finance propelled DBSA to step in and provide the necessary financial resources for the overhaul.
Industries dependent on Transnet's services, including the lucrative iron ore and coal sectors, have been critical of the decreasing amount of freight transported to and from the ports, which has plummeted by a staggering third over the preceding five years. The South African presidency laments the inefficiency of the container terminals, pushing towards privatising for much-needed modernisation.
Transnet is currently fine-tuning an agreement with Philippines's International Container Terminal Services Inc. to run and expand the largest container port in Africa in Durban. They're also seeking private operators for the key rail-freight line between Durban and Gauteng, the industrial nucleus of South Africa.
Furthering its commitment to South Africa’s infrastructure transformation, DBSA is investigating investments in water and green hydrogen projects, as well as rural mini-electric grids. It plans to form an alliance with South Africa’s power utility Eskom Holdings SOC Ltd. to initiate the roll-out of these energy projects.
DBSA's additional initiative revolves around setting up an electric vehicle charging network in South Africa, elucidating its role at the vanguard of South Africa's infrastructure transformation.