
Public Enterprises Minister Pravin Gordhan will lead a delegation to China next month in an attempt to break an impasse over the delivery of locomotives and spare parts. Chinese parastatal CRRC was among the winning bidders when Transnet announced suppliers of more than a 1000 locomotives in 2014. But Transnet later halted the supply of the locomotives saying that the contracts worth more than R50 billion had been awarded unlawfully. CRRC and Transnet have since been engaged in legal battles and 161 locomotives are not running after the company withheld spares and maintenance. CRRC locally is a Gupta-linked subsidiary of the Chinese company that has been implicated in corruption. The contract is viewed as crucial in Transnet’s efforts to rehabilitate its rail network which has crumbled over the years affecting the ability of exporters and large producers to transport their goods. To discuss we’re joined by Mesela Nhlapo from the African Rail Industry Association.