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South Africa halts deal with world’s biggest train maker

South Africa’s rail freight company Transnet has suspended business dealings with the Chinese train manufacturer CRRC, over contract disputes, but it may have to reverse that ban to get its locomotives repaired.

Transnet is taking legal action against the Chinese company to enforce payment on penalties levied against the company for cost overruns in a contract to supply hundreds of locomotives.

CRRC, which is the world’s biggest train manufacturer, owes at least $3bn (£2.3bn), because of problems over a contract shared by four companies, to supply 1,064 locomotives to Transnet.

The South African Treasury discovered the tender was mired in irregularities and spiralling costs, so it enforced penalties in the contract.

Transnet suspended business with the company, but as the majority of its fleet, which is built by the Chinese firm, requires maintenance, the ban will have to be lifted.

Transnet’s locomotives will need to be reliable, as the company expects to increase rail freight operations, especially transporting commodities produced by the mining industry for export, as South Africa recovers from recession.

The American manufacturer GE has paid its fines and delivered 233 locomotives to Transnet, while Bombardier of Canada has cooperated with South Africa’s investigation into allegations of corruption.

Source: bbc.com

Ogyem Solomon

Solomon Ogyem – Media Entrepreneur | Journalist | Brand Ambassador Solomon Ogyem is a dynamic Ghanaian journalist and media entrepreneur currently based in South Africa. With a solid foundation in journalism, Solomon is a graduate of the OTEC School of Journalism and Communication Studies in Ghana and Oxbridge Academy in South Africa. He began his career as a reporter at OTEC 102.9 MHz in Kumasi, where he honed his skills in news reporting, community storytelling, and radio broadcasting. His passion for storytelling and dedication to the media industry led him to establish Press MltiMedia Company in South Africa—a growing platform committed to authentic African narratives and multimedia journalism. Solomon is the founder and owner of Thepressradio.com, a news portal focused on delivering credible, timely, and engaging stories across Ghana and Africa. He also owns Press Global Tickets, a service-driven venture in the travel and logistics space, providing reliable ticketing services. He previously owned two notable websites—Ghanaweb.mobi and ShowbizAfrica.net—both of which contributed to entertainment and socio-political discussions within Ghana’s digital space. With a diverse background in media, digital journalism, and business, Solomon Ogyem is dedicated to telling impactful African stories, empowering youth through media, and building cross-continental media partnerships.

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