Traxtion doubles rail fleet as South Africa opens sector to private players: South African rail player Traxtion is buying up ZAR 3.4 bn (c. USD 199 mn) worth of locomotives and wagons for local deployment as the state-owned Transnet’s monopoly ends, Bloomberg reports. By acquiring 46 locomotives, Traxtion will nearly double its fleet and begin its first freight operations in South Africa’s main rail network.

One slice of a big pie: South Africa’s current rail network spans 23k km and is looking to move 250 mn tons of freight by rail by 2030. Transnet currently moves some 160 mn tons, leaving Traxtion — the continent’s largest private rail firm — to invest in 5% of that 90 mn ton gap. The remaining investment windows will be up for grabs by other competitors.

ICYMI- South Africa shortlisted 11 private firms to manage its state-owned freight-rail network and has begun negotiations with Transnet over the management of its 41 routes and six corridors. The selected firm — or consortium — will receive a 10-year operating license, but the government will retain ownership of the assets.

Why does South Africa want Transnet out of the picture? South Africa’s government has been trying to end Transnet’s monopoly over the network for years as the firm struggled with mismanagement, corruption allegations, and declining cargo volumes. Transnet could not afford the investments needed to upgrade the rail network, forcing the government to approve USD 5.4 bn (c. ZAR 95 bn) in credit assurance against default for debts over the next five years, on top of the previously pledged USD 3 bn (c. ZAR 51 bn).

UAE’s DP World is eyeing a piece of Transnet: DP World is eyeing investments in the partial privatization of Transnet. Red Sea Gateway Terminal International is mulling a Transnet tender to develop and operate a fresh produce terminal at Durban port.

India’s Adani Group is planning to invest USD 15 bn in its airports over the next five years, sources familiar with the plans told Bloomberg. The plan — which will boost its airports’ passenger capacity by 60% to 200 mn — is set to be 70% funded by debt, with the rest raised through equity.

Where will the investments go? The plan is to establish new terminals, taxiways, and a new runway at Navi Mumbai Airport –– set to open on 25 December –– as well as upgrade capacity at Ahmedabad, Jaipur, Thiruvananthapuram, Lucknow, and Guwahati.

The game plan: With forecasts predicting passenger traffic in India to double to more than 300 mn passengers, Adani Group’s planned expansion aims to position the company as a main partner in meeting this growth ahead of the planned IPO of its airports unit, Adani Airports Holding, in 2027, the news outlet reported. The IPO will enable the company to mobilize financing for its planned USD 100 bn investment push across energy, logistics, and infrastructure within the next five to six years.

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