South Africa’s High Court has invalidated the 2014 locomotive contract between Transnet and Wabtec South Africa Technologies. The $428.7 million deal covered the purchase of 233 diesel locomotives. This is reported by the railway transport news portal Railway Supply.

South Africa’s High Court has invalidated the 2014 locomotive contract between Transnet and Wabtec South Africa Technologies. The $428.7 million deal covered the purchase of 233 diesel locomotives.
Source, photo: www.railwaypro.com

The ruling, issued on April 14, 2025, marks the first in a series of decisions targeting procurement agreements tainted by alleged corruption. It supports Transnet’s broader mission to restore credibility and financial responsibility in public-sector deals.

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High Court Declares Locomotive Contract Invalid

The judgment followed a negotiated settlement involving Transnet, Wabtec, and South Africa’s Special Investigating Unit (SIU). This agreement prevents disruption of freight services while securing public interest.

Under the settlement terms, Transnet retains all 233 locomotives. Wabtec will not return previously paid funds but has agreed to pay $3.77 million in direct compensation.

In addition, Wabtec will provide a $3.77 million credit to fulfill its outstanding supplier development commitments. These provisions aim to recoup value for taxpayers while sustaining operational stability.

Settlement Terms Secure Public Funds Without Halting Freight

The SIU welcomed the outcome, emphasizing accountability and protection of national assets. “We remain committed to justice and the preservation of public funds,” Transnet and SIU said in a joint release.

The invalidated contract was part of a $2.68 billion procurement program launched in 2012 for 1,064 locomotives. Four companies were awarded contracts: Alstom (formerly Bombardier), CRRC SA, CRRC E-Loco, and Wabtec.

Alstom supplied 232 electric locomotives. CRRC SA delivered 240 diesel units. CRRC E-Loco supplied 359 electric units. Wabtec was responsible for the 233 diesel locomotives now under scrutiny.

Legal action continues over the other three procurement deals. Authorities aim to reinforce ethical governance in future state-run projects and recover losses from unlawful practices.

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