Transnet has struggled to provide adequate freight rail and port services for years because of equipment shortages and maintenance backlogs linked to under-investment, with cable theft and vandalism also damaging the rail network.

The support package comprises a R41 billion ($2.3 billion) guarantee for Transnet's funding requirements in the 2025/26 and the 2026/27 financial years and a R10 billion ($557 million) guarantee to help it service debt and make capital investments.

Transnet said in a statement that the support would allow it to build on progress with strategic rail and port reforms.

--Reuters--