[miningmx.com] – TRANSNET, South Africa’s state-owned transport and logistics utility, would not yet trim its market demand strategy (MDS) despite the fact the economy was growing at rates below levels required to support the utility’s R300bn infrastructure expansion.
In an interview with BDLive, Brian Molefe, CEO of Transnet, said that the MDS, a strategy to lift capacity at the country’s ports and rail infrastructure, was premised on annual economic growth of 3%.
South African gross domestic product growth missed the 3% target in the last fiscal year and was only expected to grow 2.7% in the current year, according to the National Treasury’s national budget statement.
Said Molefe: “We have not reviewed our MDS numbers yet, we are still confident with the revenue we are generating now.
“But if push comes to shove, it may be necessary to push those numbers down. Or if the economy improves, we can maybe do even more”.
