Pravin Gordhan is fighting to save Transnet’s freight rail, which could be auctioned off to
Key Highlights :
Minister of public enterprise Pravin Gordhan faces a mammoth task in trying to convince the Chinese government to rein in CRRC e-Loco Supply, a company whose impasse with Transnet has brought the embattled state-owned rail operator to its knees. The woes facing Transnet has seen many mining houses forgo export income, a situation which also has a ripple effect on other state-owned companies.
The Chinese company has been in dispute with Transnet over the terms of a contract to supply locomotives and rolling stock to the rail operator. Transnet has accused the company of not meeting its contractual obligations and of deliberately delaying delivery of the equipment.
The dispute has caused Transnet to lose millions of rand in revenue, and has also led to the company being placed under financial pressure. The Chinese company is also facing a backlash from the South African public, with many people accusing the company of exploiting Transnet's predicament for its own benefit.
The minister will have to convince the Chinese government to take a more lenient approach to the company in order to save Transnet from bankruptcy. He will also have to convince the Chinese company that it is in its best interests to abide by the terms of the contract. If the minister is successful, it could lead to a turnaround for Transnet and a boost for the South African economy.
