TransNet said it has signed a loan agreement of R2.2bn with the Agence Française de Développement for its Cape Town container terminal expansion programme.

The loan, which will be rolled out over 15 years, will partially fund the South African freight logistic group’s R4.6bn terminal expansion project.

Once complete, the port’s container terminal capacity will increase to 1.4 million teu per annum by 2012.

The expansion project is part of Transnet’s R80bn investment programme.

The work involves deepening of the entrance channel, basin, refurbishment of the berths, replacement of container handling equipment and acquisition of new equipment.

It also involves the reconfiguration of onshore areas to provide additional stack capacity and improve land access.