Absa backs Newlyn Group with R5.1bn for port and logistics property expansion
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Absa has extended R5.1bn in financing to port and logistics developer Newlyn Group as South Africa pushes to shift more freight from road to rail and improve supply-chain efficiency.
Absa has provided R5.1 billion in financing to Newlyn Group, a South African developer and owner of port and logistics infrastructure, in a transaction aimed at expanding the assets and networks underpinning the country's freight economy.
Unlike traditional industrial property developers, Newlyn focuses on infrastructure that improves the efficiency of national supply chains through logistics parks, multimodal freight facilities and port-related developments. The group owns and manages 32 logistics assets covering more than 1.3 million square metres of gross lettable area, alongside a 240-hectare landbank.
Its development pipeline includes the Newlyn PX Bayhead Rail Terminal adjacent to the Port of Durban and planned back-of-port logistics infrastructure in Coega, aligned with national freight logistics reforms and the government's objective of moving greater volumes from road to rail.
Durban remains Africa's busiest container port and the country's principal gateway for international trade. Over the past decade, growing container traffic has migrated onto roads, placing pressure on the Durban-Gauteng corridor through higher logistics costs, congestion, road deterioration and safety risks.
Absa said the transaction reflects confidence in clients with proven track records and sector expertise, and in South Africa's logistics sector at a time when port and rail reforms are creating new opportunities for private capital.