Issue link: http://read.dmtmag.com/i/531852
I DA U N I V E R S A L M ay -J u n e 2 0 1 5 24 South Africa's railway system is set to fl ourish under a boost of record investment aimed at turning the country into a key player in the global freight industry. e develop- ment was fi rst announced in 2012, when Transnet, South Africa's state-owned ports and rail company, launched the Market Develop- ment Strategy, a seven-year R300bn ($33.82bn) investment scheme with a clear strategy to rejuvenate the country's ports, rail and pipelines infrastructure. A big portion of this investment is dedicated to rail. In March 2014, Transnet announced a R50bn ($4.26bn) contract with four manufacturers to build a 1,064-strong locomotive suite. e move marked the start of the biggest rail recapitalization program in the country's history. China's rolling stock manufacturers, China North and South Rail, won the lion's share of the contract, followed by Bombardier Transportation and General Electric as key contenders. Much more than just a development scheme, the project is an initiator of growth: by boosting the national freight volumes to unprecedented levels, with a particular focus on the country's key industries of iron ore and coal, MDS is trusted to fuel a strong economy in South Africa. South Africa: Investing in Currently in its third year, the outlook for the plan is positive. e most recent development saw Transnet secure R13bn ($1.1bn) in funding to build its locomo- tive fl eet. e fi nancial backing announced on March 2 comes from a range of funders and fi nancial institutions, including Barclays Africa, Investec, Standard Bank, Old Mutual and Export Develop- ment Canada. e money is funding locomotives from Bombardier and General Electric. Most importantly, the deal marks the fi rst tangible e biggest railway deal in South Africa's history is predicted to propel its economy to a new level of prosperity. Eva Grey explores the country's infrastructure strategy and fi nds out more about a recent spate of record investment deals.