Home
FacebookTwitterSearchMenu
  • Subscribe
  • Subscribe
  • News
  • Features
  • Knowledge Library
  • Columns
  • Customs
  • Jobs
  • Directory
  • FX Rates
  • Categories
    • Categories
    • Africa
    • Air Freight
    • BEE
    • Border Beat
    • COVID-19
    • Crime
    • Customs
    • Domestic
    • Duty Calls
    • Economy
    • Employment
    • Energy/Fuel
    • Events
    • Freight & Trading Weekly
    • Imports and Exports
    • Infrastructure
    • International
    • Logistics
    • Other
    • People
    • Road/Rail Freight
    • Sea Freight
    • Skills & Training
    • Social Development
    • Sustainability
    • Technology
    • Trade/Investment
    • Webinars
  • Contact us
    • Contact us
    • About Us
    • Advertise
    • Send us news
    • Editorial Guidelines
Technology
Domestic

Transnet, Gijima reach agreement on R1.3bn IT services contract

29 Mar 2019 - by African News Agency
0 Comments

Share

  • Facebook
  • Twitter
  • Google+
  • LinkedIn
  • E-mail
  • Print

JOHANNESBURG, March 28 (ANA) - State-owned freight and logistics company, Transnet, said on Thursday that it had issued tech company Gijima Holdings with a letter of intent for the previously disputed IT data services contract worth more than R1 billion.

This comes after a number of engagements between the two companies on the IT data services contract estimated at R1.3 billion for a period of five years. 

An impasse between Transnet, Gijima and the former service provider T-Systems has been going on for years over who had been rightfully awarded the contract to provide IT data services to Transnet.

Late last year, T-Systems withdrew from the court case at the South Gauteng High Court after Transnet made an application for a declaratory order to set aside its 2017 letter of intent to award the contract to T-Systems and to give it to Gijima instead. 

In a statement on Thursday, Transnet said the decision to issue the letter of intent was taken following thorough deliberations on procurement processes as part of the clean governance approach adopted by the new board. 

The board commissioned an internal assessment on this contract and continues to ask management to carry out risk evaluation exercises on all major contracts. 

On March 1, 2019, all parties, Transnet, Gijima and T-Systems, expressed their support on the way forward on the IT data contract. 

Tau Morwe, Transnet acting group chief executive, said they were pleased that this matter had been finalised to the satisfaction of both parties.

"A process of disengagement from T-Systems will commence shortly, with Gijima becoming the IT service provider for Transnet. In this regard, a handover process from T-Systems to Gijima will be effected," Morwe said. 

Transnet also disputed media reports that it had intended to undermine the court order which it had applied for or that it was doing everything in its power keep the T-Systems' contract longer than the stipulated period. 

Gijima's group chief operating officer, Maphum Nxumalo, said Gijima felt finally vindicated for its just fight for a fair and unbiased Transnet public tender system. 

"Gijima is happy that three years later the injustice has been rectified following the High Court decision and the invaluable role played by National Treasury and Transnet," Nxumalo said.

"In the process, Gijima spent tens of millions of rands whilst fighting for justice and transformation resulting in a court order granted on 12 December 2018.  T-Systems' contract expired on 8 March 2019."

Nxumalo said Gijima was ready to begin executing the contract with significant cost savings and innovation for the benefit of Transnet and the country.

Transnet said that its newly appointed board intended to ensure that all major contracts would be reviewed to ensure that they complied with the spirit and letter of the Public Finance Management Act.

- African News Agency (ANA)

Sign up to our mailing list and get daily news headlines and weekly features directly to your inbox free.
Subscribe to receive print copies of Freight News Features to your door.

New equipment reinforces regional logistics dominance

Africa
Logistics

Ongoing expansion of Walvis Bay port and the development of key transport corridors is reshaping the region’s logistics landscape.

29 May 2025
0 Comments

Cybercrime costs economy R2.2bn

Crime
Economy
Technology

Ransomware remains one of the biggest cyber threats facing organisations, say experts.

29 May 2025
0 Comments

United Airlines launches Dakar-Washington DC service

Air Freight

The new flight is the airline’s first service between Senegal and the US.

29 May 2025
0 Comments

OPINION: South Africa needs agricultural export diversification

Freight & Trading Weekly
Imports and Exports

Our farmers now produce double what they produced in 1994. And of that double, 50% is exported.

29 May 2025
0 Comments

Port of Lüderitz's infrastructure under significant strain

Africa
Sea Freight

It comes at a time of increased volumes of oil and gas cargo, as well as bulk and infrastructure project cargoes.

28 May 2025
0 Comments

West Africa marks historic ULCV milestone

Imports and Exports
Logistics

The Port of Lomé has undergone a decade of rapid transformation to reach this point.

28 May 2025
0 Comments

China Airlines rolls out wider digital integration

Air Freight
Logistics
Technology

WebCarg is linked to 7LFreight’s rate management system for dynamic pricing and instant bookings.

28 May 2025
0 Comments

Police seize counterfeit goods worth R400m

Crime
Imports and Exports
Logistics

A raid of a freight warehouse in Durban led to the recovery of branded clothing and kitchenware.

28 May 2025
0 Comments

Looming food security crisis over SA’s Brazil poultry ban

Imports and Exports

Meat importers warn that the local industry will not be able to plug the gap left by the ban.

28 May 2025
0 Comments

Institute conference set to focus on regional connectivity

Events
Logistics

The event brings together transport and logistics professionals from across the continent.

28 May 2025
0 Comments

Punishing duties backfire on US economy

Economy
Imports and Exports

“South Africa must follow its own fiscal policies rather than the US Federal Reserve.” – Ricardo Smith, Absa chief investment officer.

28 May 2025
0 Comments

RFA warns of imminent B-BBEE codes risk

Logistics
Road/Rail Freight

The association plans to meet with the transport minister to discuss how the codes will hurt the industry.

27 May 2025
0 Comments
  • More

FeatureClick to view

Road & Rail 27 June 2025

Border Beat

Forum tightens net against border corruption
25 Jun 2025
Police clamp down on cross-border crime
17 Jun 2025
Zim's anti-smuggling measures delay legitimate freight operations
06 Jun 2025
More

Poll

Has South Africa's ports turned the corner?

Featured Jobs

New

Multi-Modal Controller

Tiger Recruitment
JHB North
27 Jun

Commercial Manager

Lee Botti & Associates
Durban
25 Jun
More Jobs
  • © Now Media
  • Privacy Policy
  • Freight News RSS
  • About Us
  • Advertise
  • Send us news
  • Contact us