Transnet said on Wednesday it had agreed to resolve its legal disputes over procurement contracts with the local unit of China’s CRRC Corp, clearing the way for the supply of critical spare parts for its rolling stock.
The two parties have been engaged in legal battles after state-owned Transnet halted the supply of 1 064 locomotives from four original equipment suppliers, including CRRC, saying that 2014 contracts worth R54.4 billion had been unlawfully awarded by the previous board and management.
“Transnet and CRRC E-Loco reached an in-principle agreement towards the resolution of all current legal disputes between the two companies, to enable support to enhance Transnet Freight Rail’s ability to serve customer demand on an urgent basis,” Transnet said in a statement.
It gave no details of the agreement but said the two parties would now work on a “definitive settlement agreement” to complete the resolution of the disputes.
CRRC
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