Transnet cancels private sector contract
Transnet’s efforts to get private sector players to run its crucial railway lines have bombed further, with the state-owned transport group cancelling a contract awarded to one of only two companies that showed interest in partnering with it.
Transnet Freight Rail, the largest division at Transnet in terms of revenue generation, recently announced that it had cancelled a conditional contract with Traxtion Sheltam, which emerged as a successful bidder in November 2022 to operate the Kroonstad to East London railway line.
The line, known as the Cape Corridor, is crucial for South Africa’s economy as it is the main line for manganese exports and agricultural commodities. Transnet said the cancellation of the contract was by mutual agreement with Traxtion Sheltam, which operates railway lines in several African countries. – Daily Maverick