Transnet is cracking the whip to get its organisation in order as it yesterday launched an application in the High Court to compel China Railway Rolling Stock Corporation (CRRC) E-Loco Supply to supply the prerequisite parts and components for a fleet of 300 locomotives.
These parts were imported to service and maintain the 95 20E and 100 21E locomotives acquired from CRRC in 2012 and 2014, respectively.
In a statement yesterday, Transnet said the application provided for an urgent hearing to secure the immediate release of the spares for use in the locomotives, and for the amount due by Transnet to CRRC for such spares, if anything, to be determined in due course.
“Access to the spare parts and components will allow Transnet to bring back to service 53 Class 20E and 67 Class 21E long-standing locomotives, which have been long-standing as a result of the inability to access the required spares and components. In addition, it will contribute to timely maintenance of these two fleet classes,” it said.
Transnet needs to regain traction as its CEO Portia Derby, at the group's financial results presentation last month, said that the state-owned logistics group was hamstrung with about 300 locomotives currently “parked”, partly as a result of an absence of spares.
Transnet is expected to launch a tender this month for new locomotives, having recorded a 5.6 percent drop in rail volumes last year as a result of a combination of locomotive shortages and serious operational and security problems.
Derby said Transnet had initially intended launching the locomotive request for proposals in July, but the internal deadline was shifted to ensure that various legal and governance matters were dealt with ahead of the tender.
Transnet also faces ongoing disputes with some of the original equipment manufacturers that participated in the so-called ‘10-64’ contract for 465 diesel and 599 electric locomotives. This is core to the delay, as Transnet did not want to proceed until it was satisfied that the tender would not be interdicted.
The Chinese company, which had as its black empowerment partner the Matsete Basadi Consortium (MBC), was first awarded the tender in late 2012 for the supply of 95 locomotives, followed by another in mid-2013 to build 100 locomotives. In March 2014, it received yet another tender to build 359 locomotives.
The 2014 contract formed part of the controversial 1 064 locomotives tender.
According to the African Rail Industry Association (Aria), Transnet’s gross tonnes per kilometre for the General Freight Business were on the decline from 2017 to 2021.
The Transnet statement comes hot on the heels of it announcing this week that it welcomed the approval by the Minister of Justice and Correctional Services for Transnet security officers to be granted peace officer status as per the Government Gazette.
This as Transnet Freight Rail experienced an exponential increase in cable theft incidents over the past five years, which had resulted in increased tonnage and revenue losses and increased repair costs.
Over 1500km of cable has been stolen, or a 1 096 percent increase in the length of cable stolen, in the past five years, with a net financial impact of R4.1 billion.
BUSINESS REPORT