State ports and freight rail company Transnet has announced that it will issue an open tender for eligible original equipment manufacturers to step in to rehabilitate locomotives supplied by CRRC E-Loco Supply.<\/P>
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According to Transnet, the supplier has not provided rehabilitation for at least 161 locomotives which are currently non-operational \u2013 causing revenue losses for the state-owned company.<\/P>
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\u201cThis is a critical intervention not only for Transnet\u2019s sustainability, but for the South African economy.<\/P>
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\u201cThe CRRC locomotives directly impact three major corridors (North, Northeast and Cape Corridors) that account for roughly 50% of Transnet Freight Rail\u2019s revenue, and support three primary mining sector segments, namely export coal, chrome, and manganese,\u201d a Transnet statement read.<\/P>
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Off the rails<\/P>
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Between 2011 and 2014, the controversial supplier was awarded contracts to the value of some R25 billion to provide Transnet with locomotives \u2013 contracts that were subsequently highlighted during the State Capture commission hearings.<\/P>
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Transnet and the Special Investigating Unit has launched a review application in the Special Tribunal to set aside those contracts.<\/P>
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The locomotive company has also been flagged by the South African Revenue Service (SARS) and the South African Reserve Bank (SARB) and had some R4.2 billion, paid by Transnet, frozen by the Special Tribunal.<\/P>
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Last year, Transnet announced that it had entered into an in principle as well as a settlement agreement with CRRC for the maintenance of at least 161 locomotives in the state entity\u2019s possession.<\/P>
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\u201cAmong others, the Definitive Settlement Agreement is meant to enable rehabilitation of non-operational 22E locomotives, long-term material and reliability support to Transnet, the repayment to Transnet of unjustified profits by CRRC and the delivery of the remaining 99 locomotives at the corrected price, subject to the outcome of Transnet and the SIU\u2019s Review Application,\u201d Transnet said.<\/P>
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Now, the state-owned company says CRRC has showed an \u201cunwillingness\u2026to engage with the [South African Revenue Service and the South African Reserve Bank]\u201d to normalise its operations in the country\u201d in order for it to supply the spares.<\/P>
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\u201cA key contingent requirement introduced by CRRC at the time of the In-Principle Agreement and also included in the Definitive Settlement Agreement is the normalising of CRRC\u2019s operation in South Africa by [SARS] and the [SARB] in order to allow Transnet to give effect to the Definitive Settlement Agreement.<\/P>
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\u201cAs independent organs of state, both SARS and the SARB are required to follow statutory prescript in considering applications by CRRC to normalise its operations in South Africa. Transnet respects the independence and processes of these organs of State,\u201d Transnet said.<\/P>
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Transnet is also expected to issue a confined tender for locomotive repairs supplied by Wabtech, Mitsui and Alstom.<\/P>
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\u201cThe resolution of this matter is key in supporting Transnet\u2019s efforts to normalise its operations, enhancing the service provided to customers, and boosting the national fiscus,\u201d Transnet said.<\/P>
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Source: South African Government News Agency<\/P>
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State ports and freight rail company Transnet has announced that it will issue an open tender for eligible original equipment manufacturers to step in to rehabilitate locomotives supplied by CRRC E-Loco Supply.According to Transnet, the supplier has no…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"yoast_head":"\n