
South Africa’s state railway company Transnet has put out a tender for any company that can fix non-operational Chinese-made locomotives acquired under a corrupt deal.
The original manufacturer of the locomotives, China Railway Rolling Stock Corp (CRRC), refused to supply the needed parts after South African authorities overturned the contract for irregularities related to the take-over of South African state institutions by corrupt officials.
Despite an in-principle deal between the company and Transnet in 2022, the two are now at a stalemate.
WHY IS THIS IMPORTANT?: SA’s mineral council blames Transnet for $3 billion in lost revenue last year alone as the corruption-addled company’s failures hit rail and ports logistics. South Africa makes up one-fifth of all China’s African trade.
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- News24: Transnet launches urgent tender for critical spares as deal with Chinese firm stalls by Lisa Steyn
- Bloomberg: Transnet Gives Up on Chinese Rail Deal, Plans New Tender by Felix Njini