SOUTH African private rail freight operator Traxtion has successfully concluded an $US 86m equity capital raise to support its previously announced Rand 3.4bn ($US 210m) rolling stock investment programme intended to facilitate future operational growth as rail reform and private-sector participation continues to gain momentum in South Africa and other sub-Saharan African countries
The investment is from Stanlib Infrastructure Investments, Standard Bank and long-standing investor Harith through its Harith InfraCo and PAIDF2 funds have provided the investment finance. As part of the transaction, Stanlib, through its Stanlib Infrastructure Fund II, and Standard Bank will acquire a significant minority stake in Traxtion.
“This investment clearly demonstrates the confidence we have long held in the future of rail and is yet another step toward unlocking rail’s full potential as a catalyst for growth,” says James Holley, CEO of Traxtion.
Holley also confirmed that Traxtion’s rolling stock programme remains on track, with the first refurbished locomotives expected to enter service in March next year.
Updated network statement
South African transport minister, Barbara Creecy, recently announced that the government will update the network statement later this month. This is expected to generate greater certainty and continued progress towards enabling increased private-sector participation in rail. “That is going to give the new price for which operators can carry different goods,” she says.
The government is currently finalising the National Rail Bill which is due to be submitted to the cabinet in September.
