https://www.engineeringnews.co.za
Financial|Locomotives|Logistics|rail|Transnet|Equipment|Maintenance
Financial|Locomotives|Logistics|rail|Transnet|Equipment|Maintenance
financial|locomotives|logistics|rail|transnet|equipment|maintenance

Transnet aims to secure settlements on ‘unlawful’ loco contracts by end of financial year

Transnet acting CEO Mohammed Mahomedy on the group's settlement talks with four original-equipment manufacturers (OEMs) supplying it with 1 064 new diesel and electric locomotives under contracts that have been deemed “irregular and unlawful” by the group. Camerawork and editing: Darlene Creamer 30.9.2019

30th September 2019

By: Terence Creamer

Creamer Media Editor

     

Font size: - +

State-owned logistics company Transnet reported on Monday that settlement talks were under way with all four original-equipment manufacturers (OEMs) supplying it with 1 064 new diesel and electric locomotives under contracts that had since been deemed “irregular and unlawful” by the group.

Under a R49-billion procurement programme concluded in 2015, General Electric and China North Rail (CNR) were awarded contracts to supply 233 and 232 diesel locomotives respectively, while China South Rail (CSR) and Bombardier Transportation had been contracted to supply 259 and 240 electricity locomotives respectively.

Speaking at the group’s results presentation, Transnet acting CEO Mohammed Mahomedy confirmed that General Electric had already completed delivery of its locomotives, while CSR had delivered 249 units, Bombardier Transportation 51 and CNR 21 to date.

He reiterated Transnet’s view that the contracts were unlawful and confirmed that “very confidential” discussions were under way with all OEMs, following some initial delays.

“We have had multiple discussions with the OEMs, as recently as last week and the next rounds of discussions . . . [are scheduled for] later this week and early next week. We believe that, before the year is out, you should actually be hearing of finalisation of some of the negotiations and discussions.”

Mahomedy would not be drawn on the nature of the settlements being sought, saying only that various matters were being considered, including delivery schedules, supplier development and the nature of the maintenance agreements.

“The production lines continue, and they will continue until an agreement is reached to act otherwise.”

Edited by Creamer Media Reporter

Comments

Showroom

VEGA Controls SA (Pty) Ltd
VEGA Controls SA (Pty) Ltd

For over 60 years, VEGA has provided industry-leading products for the measurement of level, density, weight and pressure. As the inventor of the...

VISIT SHOWROOM 
ESAB showroom image
ESAB South Africa

ESAB South Arica, the leading supplier of high-end welding and cutting products to the Southern African industrial market is based in...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.106 0.156s - 161pq - 2rq
Subscribe Now