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Transnet gets control of Chinese spares disputed by S.African court

Transnet's CEO announced on Thursday that a South African court had ordered China's CRRC E-Loco, which has been in a long-running dispute with Transnet, to release locomotive parts it had refused to provide. This decision is a boost to the plans of Transnet to improve its performance.

Both parties are involved in a legal battle after Transnet halted 1,064 locomotives supplied by four original equipment manufacturers, including CRRC E-Loco. Transnet claimed that contracts for 2014 worth $54.4 billion rand (3.18 billion dollars) were illegally awarded by previous company leadership.

Transnet reported that in 2023 161 locomotives provided by CRRC E-Loco did not run due to the Chinese firm withholding spares or maintenance support. This had a negative impact on Transnet's rail freight operations.

Transnet, who insists that it paid for parts under the disputed agreement before it was terminated won a separate order from a court last July, stopping CRRC E-Loco's ability to sell or relocate parts already in South Africa.

Transnet CEO Michelle Phillips said, at a mining convention in Johannesburg, that Transnet recently won another court decision related to the handover of spares which were stored in warehouses across the country.

"I would not pay for my parts again." Phillips explained that after going back to court the CRRC was given five days to deliver these parts to Transnet.

We've been checking out those parts for the last few days. She added, "We are doing a full inventory of these parts."

CRRC E-Loco did not respond to a request for comment.

Transnet's dispute over CRRC E-Loco has exacerbated its equipment shortages. This includes locomotives not delivered under the contract that was terminated.

Cable theft and vandalism have also affected the company's performance. The company's freight volume has fallen from 226 million tons in 2017/18, to 160 millions tons in 2024/25.

(source: Reuters)