Germany supports Transnet: EUR 200 million for 240 electric locomotives
June 23, 2015
- Germany supports South Africa’s shift from road to rail with almost 3 billion Rand.
- Local production: Up to 15.000 jobs created. Control technology from Germany
- Modern locomotives in South Africa and less road transport will significantly reduce CO2 emissions
In the presence of German Ambassador Dr. Freitag, KfW Development Bank and South Africa's state-run logistics company Transnet signed contracts on a promotional loan of EUR 200 million (about 2.8 bn Rand). The loan will facilitate the procurement of 240 electric locomotives. The German Federal Government has issued a partial guarantee for the loan.
“We were deeply impressed when Transnet announced a R50 billion investment to manufacture more than 1 000 electric locomotives“ said Ambassador Dr. Horst Freitag on the occasion. “Logistics is not everything. But without good logistics, everything is nothing."
Germany supports South Africa's strategy to increase the efficiency and capacity of its freight transport sector, aiming for a modal shift from road to rail. This will reduce CO2 emissions and make an important contribution to protecting the climate. The production of the locomotives in Durban will create up to 15,000 new South African jobs.
The control technology will come from Bombardier in Germany.
KfW development is acting on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ).
German Embassy Pretoria