Transnet In Trouble - Is South Africa's Transport Giant Going Off The Rails

Three months. That’s how long Transnet has before it runs out of money for debt-servicing and operations, according to Moody’s ratings.
Unless, of course, as with all our struggling state-owned enterprises, it receives (another) bailout from the government.
Moody’s said in a statement that “[Transnet] requires additional government support to refinance upcoming debt maturities and secure funds for its expanded capex program.”
To be quite honest however, with the multi-billion hole left in its budget from
the decision not to increase VAT, I think the government has enough problems of its own to contend with without having to throw more money at yet another SOE with its hand out.
Yet without some kind of cash injection from somewhere, Transnet looks set to grind to a halt within the next 90 days. The African Development Bank has estimated that the company’s full recovery requires over R150 billion in capital investment.

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