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South Africa seeks to regain locomotive supply from China

sxcoal.com International 2023-03-29 10:11:47

South African Public Enterprises Minister Pravin Gordhan will lead a delegation to China in April in hopes of resolving an ongoing dispute with Chinese rail equipment maker CRRC E-Loco.


Transnet, the state-owned logistics company, said the two had engaged in legal battles after it halted the supply of 1,064 locomotives from CRRC and three other suppliers. The 2014 contracts, worth 54.4 billion rand ($3 billion), were allegedly unlawfully awarded by the previous board and management.


Therefore, CRRC withheld spares and maintenance support, leading to the withdrawal of 300 locomotives from service and impacting operations on Transnet's iron ore, coal and manganese export lines.


President Cyril Ramaphosa earlier criticized the declining performance of Transnet's freight-rail division as a constraint on South Africa's economy.


Apart from a lack of locomotive, cable theft and derailments have been among the problems plaguing the network, leading to a slump in coal shipments to the RBCT. Transnet has invoked the force majeure for sixth time in the past two years.


Coal shipments to the RBCT is estimated at 48.6 million tonnes for the current fiscal ending March 31, compared with 57.8 million a year earlier and its target of 74 million tonnes.


(Writing by Alex Guo  Editing by Emma Yang)
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