Transnet receive a boost after reaching an agreement with China Railway Rolling Stock
Transnet Freight Rail has received a massive boost as the company forced China Railway Rolling Stock Loco to release critical spare parts and components. This follows a legal suit that the state-owned company took in the past few weeks and it is now reported that the 10-year-long maintenance backlog of rolling stock by Transnet Freight Rail
Transnet receive a boost after reaching an agreement with China Railway Rolling Stock
Transnet Freight Rail has received a massive boost as the company forced China Railway Rolling Stock Loco to release critical spare parts and components.
This follows a legal suit that the state-owned company took in the past few weeks and it is now reported that the 10-year-long maintenance backlog of rolling stock by Transnet Freight Rail has been given a significant boost.
On Wednesday, Transnet reached an in-principle agreement with China Railway Rolling Stock (CRRC) E-Loco towards the resolution of all current legal disputes between the two companies.
As reported by BusinessTech Africa a fortnight ago, Transnet launched an application in the High Court to force CRRC to release the spare parts and components required to return 120 locomotives to service.
The spare parts and components were imported to service and maintain the 95 Class 20E and 100 Class 21E dual-voltage electric locomotives which Transnet Freight Rail had acquired from CRRC in 2012 and 2014, respectively.
Speaking for Transnet, Ayanda Shezi said the agreement towards the resolution of all current legal disputes would enhance Transnet Freight Rail’s ability to serve customer demand.
“The next steps will be to finalise a definitive settlement agreement and complete the resolution of the current legal disputes,” Shezi said as per IOL.
At the same time, Old Mutual Wealth investment strategist Izak Odendaal also weighed in on the saga, saying he welcomed this agreement.
“It is obviously a positive development that could hopefully alleviate some of the operational problems on the rail system that have severely hampered coal exports,” Odendaal said.
“However, it is too soon to say when things will start improving and by how much they will improve given that the other challenges such as cable theft also need to be addressed.”
It is reported that the country’s rail authority parted ways with more than 15 million tons of freight volumes in the year ending March 31 after declaring force majeure due to irregular locomotive acquisition.
Main Image: Transnet Freight/MoneyWeb
