The rail investment concerns procurement of 95 electric and 43 diesel locomotives worth Rand 3.6bn. During the current financial year, Transnet Freight Rail expects to take delivery of 86 locomotives and 1509 freight wagons.

As a result of the decision to accelerate locomotive orders, 196 locomotives will enter service in 2013 and another 106 in 2014.

Transnet's CEO, Mr Brian Molefe, says that although capital expenditure in the six months to September 30 fell 6.9% to Rand 9.5bn, it plans to meet the Rand 25.8bn annual investment target by March 31 2012.

Transnet says it needs to raise just under Rand 33bn during the next five years to fund the five-year investment plan, with the rest coming from its own resources.