Africa|Engines|Locomotives|Manufacturing|rail|Transnet|Manufacturing |Locomotive
Africa|Engines|Locomotives|Manufacturing|rail|Transnet|Manufacturing |Locomotive

Bombardier to pay Transnet R468m to settle dispute over State capture locomotive deal

Transnet locomotive

Photo by Creamer Media

7th September 2023

By: News24Wire


Font size: - +

Bombardier Transportation SA (BTSA) has agreed to pay Transnet a total of R468-million to settle a long-running legal dispute over a locomotive supply contract. 

Transnet, in turn, will release withheld penalties worth R92.4-million in favour of Bombardier, a subsidiary of French train giant Alstom.

The two parties are planning to file a joint affidavit motivating for the agreement to be accepted by a high court.

The settlement will cover how costs for the locomotives were calculated, advance payments, and manufacturing relocation costs.

The legal dispute relates to Transnet's scandal-plagued decision to upgrade its ageing locomotive fleet a decade ago. 

The locomotive supply contract featured prominently in the Zondo Inquiry into State Capture, which investigated how costs ballooned from R38.6-billion to R54.5-billion.

Bombardier was one of four locomotive manufacturers that shared a multibillion-rand contract to supply the State-owned enterprise with 1 064 new engines. It won a tender to deliver 240 locomotives. Of these, 149 are still outstanding. 

The other three groups that shared the contract were China North Rail, China South Rail and General Electric. The two Chinese companies have since merged into CRRC E-Loco, while WABTEC South Africa Technologies has taken over General Electric's order. 

CRRC E-Loco still has to deliver 309 locomotives, while WABTEC has supplied all of its 233 engines. 

Transnet is still trying to strike a deal with the Chinese rail giant, which suspended deliveries in 2019.  Earlier this week, Minister of Public Enterprises Pravin Gordhan said SA may be "very close to concluding the matter".  

Edited by News24Wire


Latest News

Kenhardt solar farm, in Northern Cape
Scatec inaugurates 540 MW Kenhardt solar farm
18th April 2024 By: Marleny Arnoldi


Immersive Technologies
Immersive Technologies

Immersive Technologies is the world's largest, proven and tested supplier of simulator training solutions to the global resources industry.

Yale Lifting Solutions
Yale Lifting Solutions

Yale Lifting Solutions is a leading supplier of lifting and material handling equipment in Southern Africa. Yale offers a wide range of quality...


Latest Multimedia

sponsored by

Magazine round up | 19 April 2024
Magazine round up | 19 April 2024
19th April 2024

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
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?







sq:0.278 0.342s - 184pq - 2rq
Subscribe Now