Transnet partners with France, EU to decarbonise ports and railways

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The initiative includes a proposed €300m (R6bn) AFD loan and a €7m (R140m) EU grant, aimed at renewable energy, rail rehabilitation, and green hydrogen development across South Africa’s state-owned ports and rail network.

“The funding package from AFD will assist us in revitalising our infrastructure while supporting the clean energy initiatives under the capital investment programme. In addition, this initiative will contribute significantly to supporting Transnet’s decarbonisation journey while actively exploring the company’s strategic role and potential opportunities within the green hydrogen value chain,” said Michelle Phillips, Transnet Group chief executive.

Disbursements from the sustainability-linked loan will be tied to progress on strategic targets, including diversifying into transition minerals and sourcing 300 GWh of renewable electricity annually—about 20% of Transnet’s electricity needs.

The French contribution also supports a shift from road to rail, including the rehabilitation of 550 km of railway and the modernisation of port infrastructure to improve service quality, reliability, and competitiveness.

“Transnet is a long-standing partner of AFD, and is a key actor in South Africa’s low-carbon transition. Our support will enable Transnet to pursue opportunities that will emerge from the green hydrogen economy, contribute to the modernisation of its operations and reduce its environmental footprint,” said Rémy Rioux, CEO of AFD.

The loan is part of France’s €1bn commitment under the Just Energy Transition Partnership (JETP), which AFD has been implementing since 2021.

EU support for low-carbon initiatives

The €7m EU grant will help Transnet advance its green hydrogen strategy across ports, rail, pipelines, and facilities. Funding will support studies, impact assessments, pilot projects, and technical assistance to accelerate low-carbon hydrogen initiatives.

“Through our investment strategy Global Gateway, the EU is supporting concrete investments in South Africa’s green hydrogen economy. Investments that cut emissions and create high-quality jobs.

"With its central role in rail, ports and pipelines, Transnet is essential to building a credible and scalable hydrogen ecosystem. This partnership will help deliver the expertise and infrastructure needed for South Africa’s 2050 net-zero goals," said Jozef Síkela, EU commissioner for international partnerships.