Aug 20 Reuters South Africa39;s Transnet is seeking debt relief from the government as it seeks to repair its balance sheet and restore freight rail and port capacity, the stateowned logistics firm39;s chairman said on Tuesday.

Transnet is saddled with 130 billion rand 7.30 billion in debt and has struggled to provide adequate freight rail and port services due to equipment shortages and maintenance backlogs after years of underinvestment.

Last December, South Africa39;s government said it had handed Transnet a 47 billion rand guarantee facility to help the company meet immediate liquidity matters such as settling maturity debt.

Transnet board Chairman Andile Sangqu told journalists that the company39;s debt repayments were averaging just over 1 billion rand monthly.

Part of the debt had arisen from state capture, Sangqu said, referencing a graft scandal which rocked South Africa39;s government between 2010 and 2018 under former President Jacob Zuma and cost Transnet and other state enterprises billions of rand in corrupt procurement deals.

We will require the assistance of the shareholder to give us some form of debt relief, Sangqu said.

He said efforts to restore Transnet39;s freight volumes under a recovery plan announced in October 2023 were being undermined by debt servicing.

As we begin to make this increase in volumes, as we begin to generate new operational cash flows, they all get wiped out by the debt service costs, he said.

Transnet39;s freight…