Public Enterprises Minister Pravin Gordhan will lead a delegation to China next month to meet with its government in a bid to resolve Transnet’s locomotive supply impasse with the state-owned CRRC Zhuzhou Locomotive Company.
Transnet said in a statement that Gordhan would be meeting with his counterparts in China to try to fast-track the delivery of long-outstanding locomotives and spare parts by CRRC's e-Loco Supply division.
His intervention comes after a meeting with President Cyril Ramaphosa, during which the declining performance of the freight rail division was raised as a key challenge and a constraint to the performance of the economy.
“The CRRC locomotives directly impact the performance of three key rail corridors - North, North-East and Cape corridors.
"These corridors account for approximately 50% of Transnet Freight Rail’s revenue, and support three mining sector segments: export coal, chrome and manganese,” Transnet said.
“A key requirement for CRRC to continue doing business in South Africa is the normalisation of its relationship with key regulatory authorities – the South African Reserve Bank and the South African Revenue Service.
"Up to now, the Chinese original equipment manufacturer has declined to do so,” Transnet said.
It added that Gordhan was hopeful that talks with his Chinese counterparts would yield positive results, in the interests of both SOCs and relations between the two countries.
