South Africa and Swaziland to build $2 bln rail line
By Sarah | January 12, 2012
Reuters Africa, 12 January 2012
“That should take our capacity on the coal line beyond 91 million tonnes, closer to 100 million tonnes,” he said.
Construction of South Africa’s first new rail line in several decades and upgrades will begin next year and are expected to be completed by 2016.
A large portion of the costs, up to 12 billion rand, would be covered by South Africa and the remainder by Swaziland.
Gideon Mahlalela, chief executive of Swaziland Railways, said there would be funding available for the project despite the impoverished country’s economic woes.
“The banks are actually coming to us. We are not going to them. They say they have money available,” he said.
Transnet said a planned rail link to the Waterberg coal fields would be completed within the same period. Waterberg is expected to become the country’s next coal hub as reserves in the Witbank area near depletion.
The Waterberg line is expected to initially carry over 20 million tonnes, but could eventually handle up to 80 million tonnes of coal a year if there was sufficient demand.
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