Latest news with #Transport
IOL News
2 days ago
- Business
- IOL News
Moody's warns of threat to Transnet ratings as government steps in with guarantees
This comes after the government announced on Thursday last week that it had entered a process to allocate additional guarantees to Transnet to allow the company to cover at least all debt redemptions over the next five years and enable it to fund its capital expenditure program. Image: File Moody's Ratings has warned that Transnet's ratings will remain under review for downgrade until the South African government completes the process to allocate additional guarantees by the end of July. This comes after the government announced on Thursday last week that it had entered a process to allocate additional guarantees to allow the State-owned freight and logistics company to cover at least all debt redemptions over the next five years and enable it to fund its capital expenditure program. The Minister of Transport, with the concurrence of the Minister of Finance, approved a R51 billion guarantee facility for Transnet's capital investment programme and debt obligations. The facility will enable Transnet to refinance maturing debt and ensure the organisation's continued access to adequate resources and facilities to be able to continue its operations as well as fund the capital investment programme for the foreseeable future, while also enabling Transnet to focus on operational improvements and strategic reforms. The formalized R51bn guarantee facility has been structured to cover R41bn in funding needs that Transnet expects through the end of financial year 2027, along with R10bn in guarantees for liquidity facilities. Moody's on Thursday said it viewed the significant support measures as strengthening the financial stability of Transnet. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading Moody's senior credit analyst Lisa Jaeger said they viewed the announcements as materially credit positive for Transnet and will monitor the outcome of the process as part of the ratings review on Transnet. 'Until the conclusion of our review, Transnet's ratings, including its long-term corporate family rating (CFR) of Ba3, and its Baseline Credit Assessment (BCA) of b3 remain under review for downgrade,' Jaeger said. 'Based on the government's most recent statement, we understand that it is working on providing at least an additional R48.6bn in guarantees, available until March 2030. This would bring the total guarantees announced in 2025 to R99.6bn, the amount needed to cover Transnet's debt maturities over the next five years.' The new guarantee facilities would be following a previous R47bn guarantee facility provided in December 2023, which has been exhausted. The R51bn guarantee facility that has already been formalized is easing Transnet's immediate liquidity pressure and will enable it to meet a R9.9bn local bond maturity in August 2025,. Jaeger said this was a payment they did not expect Transnet would be able to reliably meet without additional government support. 'While this facility does not provide a permanent solution to Transnet's ongoing liquidity challenges, we believe the announced additional guarantees would support a sustainable improvement in the company's liquidity position,' Jaeger said. 'If the government provides an additional R48.6bn in guarantees as implied by the latest announcement, the total guarantees to Transnet would increase to R150.1bn, which exceeds Transnet's total debt balance of R136bn as of September 2024. 'We expect Transnet's total debt will continue to slightly increase over the next two years, nevertheless, the company would then be able to refinance nearly its entire debt with government guarantees. We believe this will substantially reduce the company's refinancing risk and ensure it maintains an adequate liquidity profile while Transnet continues to progress with its operational turnaround plan.' Transnet falls under Moody's Government-Related Issuers (GRI) methodology given its 100% government ownership. Moody's GRI assumptions are comprised of 'Very High' default dependence with the government of South Africa and 'High' probability of extraordinary support from the government, resulting in three notches of uplift of the company's Ba3 CFR from its b3 BCA. Jaeger said Moody's rating review will focus on the sufficiency of government support measures to bring the company's capital structure and liquidity position on a sustainable footing.
Toronto Sun
2 days ago
- Business
- Toronto Sun
Canada facilitating flights home for citizens leaving Israel, Iran
Published Jun 19, 2025 • Last updated 5 minutes ago • < 1 minute read Minister of Transport Anita Anand speaks to reporters at the U.S.-Canada Economic Summit held at Evergreen Brick Works on February 7, 2025 in Toronto. Photo by Katherine KY Cheng / Getty Images OTTAWA — Foreign Affairs Minister Anita Anand tells The Canadian Press that Canada is helping citizens leave the Middle East when they reach countries neighbouring Israel and Iran. Ottawa is boosting consular services in the region, and helping to facilitate commercial flights to leave the region once they reach bordering countries as airports are closed across the region. Anand says she is concerned about growing volatility in the region. More coming. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account NHL Soccer Columnists Editorial Cartoons Toronto Maple Leafs
The Independent
3 days ago
- Automotive
- The Independent
Latest official UK inflation figures explained and why they are not what they seem
The Office for National Statistics (ONS) initially stated on May 21 that the Consumer Prices Index (CPI) for April was 3.5 per cent. However, on June 5, the ONS corrected this figure, confirming the actual rate was 3.4 per cent. This discrepancy arose due to an error in the calculation of vehicle excise duty (VED) data provided by the Department for Transport. Despite the reported easing of inflation from 3.5 per cent in April to 3.4 per cent in May, the actual inflation rate remained unchanged at 3.4% for both months. This data had overstated the number of vehicles subject to VED – which in turn led to the ONS overstating April's overall rate of inflation by 0.1 percentage points, reporting it to be 3.5 per cent instead of 3.4 per cent. But while April's rate is now known to have been wrong, the ONS has a policy of not revising official inflation figures in subsequent publications. This is why, in the inflation data published on Wednesday, the ONS said April's inflation rate was 3.5 per cent, not 3.4 per cent – and why its figures suggest inflation eased month on month, instead of what actually happened, which is that it remained at 3.4 per cent. April's inflation figure will continue to be stated by the ONS as 3.5 per cent, despite it actually being 3.4 per cent.
Morocco World
4 days ago
- Business
- Morocco World
Morocco Takes Flight at Paris Air Show, Signaling Its Rise as an Aerospace Hub
Rabat – Morocco is taking center stage at the 55th Paris Air Show in Le Bourget between June 16-22, joining more than 2,500 exhibitors, over 130,000 professional visitors, and 322 official delegations. Morocco's Participation is far from ceremonial, as it's a carefully crafted move in the country's broader strategy to cement its role as a high‑value aeronautics hub. From the outset, the Moroccan delegation has outlined the strategic importance of the Bourget showcase. Minister of Industry Ryad Mezzour and Minister of Transport Abdessamad Kayouh, in addition to Minister in charge of investment Karim Zidane, lead the delegation, which also includes top executives from Royal Air Maroc, AMDIE, ONDA and GIMAS. Strategic presence The delegation represents Morocco with a clear message: Morocco is open for business, with an ecosystem ready to scale. The AMDIE-GIMAS 'Pavillon Maroc' hosts six homegrown champions in wiring, precision machining, and aerostructure. Alongside exhibition stands, a packed schedule of one‑on‑one meetings will connect Moroccan suppliers to decision‑makers and international companies operating across the entire aerospace value chain. The discussions are expected to promote the investment opportunities available in industrial zones like Nouaceur and Tangier Free Zone, where companies benefit from tax incentives, fast-track administrative support, and access to a skilled labor force trained through public-private programs. Beyond these activities, Morocco's presence at the Paris Air Show reflects a deeper strategy built around core priorities. Over the past two decades, Morocco has identified aeronautics as a 'strategic sector' capable of driving industrial diversification, job creation, and technology transfer. Today, over 140 firms operate in Morocco's aerospace cluster, spanning wiring harnesses, precision machining, assembly, and engineering services, with a local integration rate exceeding 40%. Under the leadership of King Mohammed VI, 'a strong aerospace industry has developed over the past 20 years, now offering incredible potential and opportunities for global players in the sector,' said Mezzour in a statement about Morocco's participation in the Paris Air Show. The country is focused on upgrading its industrial base by moving up the value chain. This includes producing wiring harnesses and simple subassemblies, as well as manufacturing high-precision engine components that require tighter tolerances, advanced alloys, and more sophisticated quality control systems. Nouaceur, Morocco's aerospace engine Morocco is also working to attract major international investors, with recent examples including Pratt & Whitney Canada's new engine parts facility in Midparc Free Zone in Nouaceur. The new manufacturing facility, inaugurated in May 2024, served as a key milestone in the diversification of Morocco's aerospace ecosystem. Named Pratt & Whitney Morocco (PWM), the plant will machine high‑precision static and structural parts for the PT6 and other turboprop engines. Beyond its immediate output, PWM symbolizes the shift from assembling airframe components to manufacturing engine parts, a change that demands advanced machining centers, tighter tolerances, and a workforce trained in aerospace metallurgy and quality assurance. Notably, Canada's Shimco, a global provider of engineered fastening solutions and assembly technology, also established a presence in the Midparc industrial platform at Nouaceur, In addition, the country is investing heavily in human capital, as it is expanding training programs at the Institut des Métiers de l'Aéronautique (IMA) and strengthening partnerships between original equipment manufacturers (OEMs) and Moroccan universities. The goal is to certify thousands of technicians in critical areas such as CNC machining, metrology, and composite materials. This aims to ensure that the workforce can keep pace with the industry's technological demands. In Nouaceur, the Pratt & Whitney Morocco plant is already installing ultra‑high‑precision five‑axis machining centres, poised to deliver stator rings and structural brackets for the PT6 turboprop engine. Shimco's fastening‑technology line, meanwhile, will serve both aerospace and adjacent sectors, leveraging Midparc's connectivity to Mohammed V Airport and the Tanger Med port. This twin push of deepening aeronautics while knitting together automotive and renewable‑energy investments reflects Morocco's ambition to hedge against single‑industry risk. The country aims to boost installed solar and wind capacity by 6.5 GW by 2027, targeting a 52 % share of renewables by 2030. In the medium term, Nouaceur and the surrounding Free Zones are poised to become a dynamic corridor where aerospace, automotive, and green energy industries intersect. Morocco's strategy is delivering results, as local integration rates in aeronautics have climbed above 40 %, exports now exceed $ 2 billion annually, and the aerospace workforce tops 40,000. But more than numbers, the country is winning investors' trust. By offering turn‑key investment packages, streamlined logistics, and a growing cadre of certified technicians, Morocco has shown that it can deliver the precision and reliability once exclusive to traditional European clusters. Tags: AeronauticsAerospaceParis Air Show
The Citizen
13-06-2025
- Business
- The Citizen
Victory for Transnet: more cash incoming, union accepts salary increase
Transnet needs to repay R99.6 billion. South Africa's struggling state-owned logistics company, Transnet, has gone from being warned that it might run out of money in the next months to securing millions of rands in support from the government. The troubled state ports and freight railway operator went from facing threats of a massive strike that would cost it billions in lost operations to getting the union representing most of the workers to stand down and accept the salary increase offer on the table. Weeks after receiving approval of R51 billion guarantee support from the Minister of Transport, Barbara Creecy, another financial commitment has been made. More money for Transnet Creecy said on Thursday that Transnet will receive additional guarantees to settle all its outstanding debt and execute its capital-investment programme. The department of transport will give an update on the additional support after the process has been finalised on 25 July 2025. Transnet needs to repay R99.6 billion. 'The government will monitor the performance of Transnet to ensure it provides adequate support to it as it implements the reforms required by the government,' said the department. ALSO READ: Government delivers R51 billion support to Transnet. Will it last? Transnet's 2023 financial guarantee In 2023, Transnet was given a R47 billion guarantee to support the entity in meeting its debt obligations, the same reason being offered two years later. The government's decision to offer Transnet support may be prompted by Moody's Ratings Agency's warning in May that the entity would run out of money in less than three months, unless bailouts are provided. Challenges at the troubled entity stem from a lack of infrastructure maintenance, inadequate investment in necessary infrastructure and a lack of focus on generating revenue. Despite improved support since 2023, Moody's said progress remains slower than planned, to some extent due to the continued high occurrence of theft, vandalism and adverse weather conditions. Transnet's debt burden remains excessively high, resulting in unsustainable interest payments. World Bank loan Earlier in the week, the World Bank announced it had approved a $1.5 billion (about R26.5 billion) loan, the bulk of which is expected to be directed towards reviving Eskom and Transnet. The bank said the objective of the freight transport sector reforms is to support the government's efforts to transform the sector's structure from a public monopoly to a competitive market. At the heart of the reform is unbundling the struggling Transnet. 'To build the legal and institutional foundations required for transforming the sector, the authorities have focused their attention on establishing an independent transport economic regulator to ensure fair and open access to private operators and unbundling Transnet to allow for train operators to enter the market.' ALSO READ: Transnet opens bidding for Durban multi-purpose terminal concession Massive strike Transnet received threats from the union representing most of its workers, the United National Transport Union (Untu), that it does not mind bringing the sector to a standstill if its members do not receive a salary increase they deserve. On Thursday afternoon, the union announced that it has accepted the increase proposed by Transnet, as expressed by its members. 'As the majority union representing the voices of more than 26 000 employees at Transnet, Untu confirms that this newly signed agreement supersedes the previous agreement signed between Transnet and the minority union, South African Transport and Allied Workers Union (Satawu).' Salary increase Transnet had initially proposed a salary increase of 6% this year, 6% in 2026 and 5.5% in 2027, while Untu was requesting a 10% increase. Satawu accepted the initial proposed offer. Due to the Commission for Conciliation, Mediation and Arbitration (CCMA) intervention, a new offer was made, a three-year agreement that will commence on 1 April 2025 and will end on 31 March 2028. Each year, all Transnet employees will receive a 6% increase. This is the offer Untu ended up accepting. The union said the agreement 'places a strong emphasis on job security by including a firm non-mandatory retrenchment clause'. Additionally, Untu members will receive back payment for the increase from 1 April 2025, as they were not eligible for the increase when Satawu members received it. NOW READ: SA's poor service delivery linked to almost R500 billion spent on SOE bailouts
