Transnet breached loan covenants for a second year running as the South African port and rail operator staggers under a debt burden that’s constraining investments needed to resurrect its ailing equipment and infrastructure. The state-owned company’s loans increased to R138-billion in the year through March, from R130-billion the year before, it said in a presentation to lawmakers Tuesday. Finance costs, at R15.1-billion, were almost equal to capital investment of R16.7-billion — which was less than half of what Transnet spent ten years ago.
