JOHANNESBURG, Dec 1 — The South African government said today it would inject US$2.5 billion (RM11.7 billion) of new support into beleaguered state logistics firm Transnet as it battles a huge backlog at ports.

Tens of thousands of containers are stuck at sea off Durban port because of equipment breakdowns and many ships are now going to other countries, officials said.

The National Treasury said the 47-billion-rand (RM11.7 billion) guarantee facility will help the company — which it said plays "a central role” in the economy — to meet looming debt obligations.

"The entity has suffered significant operational, financial and governance challenges in recent times and is struggling to fulfil this strategic role,” the Treasury said.

Transnet, which operates the rail freight network and all ports in Africa’s biggest economy, will get immediate access to 22.8 billion rand to deal with debt and other pressing needs, the treasury said.

"Strict guarantee conditions” will need to be met to access the rest of the funds, it added.

Transnet has long been hobbled by graft scandals, theft, maintenance troubles and its 130-billion-rand debt.

It posted a 5.7 billion rand loss for the year to March.

The firm is battling a large bottleneck in Durban port that the leading opposition party has described as "disastrous” for the economy. Richards Bay port is also struggling.

Durban handles about 60 per cent of the country’s container traffic, according to the South African Association of Freight Forwarders (SAAFF).

About 15 cargo ships carrying 40,000 containers were waiting to dock on Friday, down from a peak of more than 70,000 containers last week, SAAFF director Mike Walwyn told AFP.

The improvement was however partially down to some vessels heading for Port Louis in Mauritius, rather than waiting, he added.

"What is needed urgently is to get some new equipment,” Walwyn said, expressing hope that the government funds help. — AFP