Aside from vandalism, South African rail transport has long been plagued by equipment defects. The resolution of this dispute should allow Transnet to rejuvenate its fleet to better meet the demand for rail freight, particularly from the mining and agricultural industries.
Transnet has announced that it has reached an agreement with the South African branch of China Railway Rolling Stock Corporation (CRRC) in its ongoing legal dispute.
In a statement dated Wednesday, August 31, the South African authority responsible for the operation of national ports, pipelines and railways indicated that it had concluded "an agreement in principle for the resolution of all pending legal disputes between the two companies."
"The next steps will be to finalize a definitive settlement agreement and complete the resolution of the current legal disputes," can we read in the press release.
CRRC, following a call for tenders launched in 2014, was awarded, along with four other companies, the $4 billion contract to supply 3,2 locomotives and spare parts to Transnet as part of a plan called "Road to Rail", which should enable a modal shift to rail and reduce congestion on the road network.
The contract, the subject of multiple controversies, was brought before the South African courts by Transnet, which requested its cancellation, arguing that acts of corruption favoured the selection of the Chinese company.
The dispute, which has been going on for almost a decade, has hampered the delivery of parts to the South African Railway Authority, a large part of whose fleet has remained out of service due to lack of maintenance.
In early August, it filed an application in the High Court to compel CRRC to supply parts and components for more than 2012 trains delivered in 2014 and XNUMX.
Transnet, which has suffered a series of poor performances in recent years, has attributed the situation to, among other things, the inadequacies of its fleet. In 2021, the company recorded a 5,6% drop in rail freight volumes.
Henoc Dossa
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