Transnet and state capture-implicated Chinese rail giant reach deal on critical spares

Transnet and the local division of the China Railway Rolling Stock Corporation (CRRC) have reached an in-principle agreement towards the resolution of all current legal disputes between the two companies, the parastatal announced on Wednesday.

The deal will allow Transnet Freight Rail to procure critical spares to maintain locomotives and provide a reliable service to customers.

“The next steps will be to finalise a definitive settlement agreement and complete the resolution of the current legal disputes,” Transnet said in a statement.

Earlier this month Transnet launched an application at the North Gauteng High Court in Pretoria to compel CRRC E-Loco to make available imported spare parts.

CRRC’s refusal to supply the parts has severely hampered Transnet’s railing performance, resulting in billions in opportunity costs for the South African economy.

CRRC is one of four original equipment manufacturers that were lined up to supply 1 064 new locomotives to Transnet. Transnet and the Special Investigating Unit (SIU), however, approached the court to overturn these contracts, worth R54.4 billion, as they are deemed to have been irregular and illegal and were awarded in the midst of state capture. – fin24.com