Question NW2862 to the Minister of Public Enterprises
27 October 2023 - NW2862
Maotwe, Ms OMC to ask the Minister of Public Enterprises
In light of reports that Transnet has debt of over R130 billion, what are the (a) full details of the causes of the ballooning debt at Transnet;
Reply:
According to the information received from Transnet
Transnet debt increased by R76.4 bn from R58.1 bn in 2012 to R134.5 bn in 2016. The current debt is approximately R130 bn. The increase in debt relates to capital investment on infrastructure, locomotives or rolling stock procurement.
A portion of the debt was raised to fund the procurement of 1064 locomotives, which has been subjected to the state capture enquiry.
The operational performance has constrained the company’s ability to reduce its debt levels. The revenue generated, informed by tariffs charged and volumes moved over the years has not been sufficient to repay a significant portion of the debt raised in the years 2012 to 2016.
Currently, the board and financial experts are engaged in a process to develop a plan in this regard. This includes meeting with the National Treasury. Furthermore, in terms of the statement I made on 1 September 2023 (copy attached), the Board and management must also engage in a process of cost reduction.
Remarks: Reply: Approved / Not Approved
Jacky Molisane P J Gordhan, MP
Acting Director-General Minister
Date: Date: