In a major legal breakthrough, the High Court of South Africa has officially declared the 2014 locomotive contract between Transnet and Wabtec South Africa Technologies (formerly GE South Africa Technologies) to be invalid. The contract, valued at approximately R8 billion (USD 428.7 million at current exchange rates), involved the procurement of 233 diesel locomotives.
The ruling, handed down on 14 April 2025 by the Gauteng Division of the High Court, is the first of four major locomotive procurement agreements expected to be nullified. It represents a critical milestone in Transnet’s broader strategy to address the legacy of state capture and to restore public confidence in South Africa’s state-owned enterprises.
The court also ratified a settlement agreement reached between Transnet and Wabtec, facilitated by the Special Investigating Unit (SIU). The agreement aims to recover public funds and to ensure a balanced resolution without disrupting Transnet’s ongoing freight operations.
Under the terms of the settlement, Transnet will retain all 233 diesel locomotives. Wabtec, in turn, will keep the payments it has already received under the contract. However, the agreement stipulates that Transnet will receive R70.3 million (USD 3.8 million) in direct compensation. In addition, Wabtec has committed to provide a credit of R70.35 million towards fulfilling outstanding supplier development obligations.
The SIU, which had been granted a mandate to investigate alleged procurement irregularities at Transnet, welcomed the outcome as a step toward accountability. “The SIU and Transnet are committed to ensuring that justice prevails and that public resources are safeguarded for the benefit of the country,” the entities stated in a joint release.
The 2014 deal was part of a larger R50 billion (USD 2.7 billion at current exchange rates) procurement programme launched in 2012 for 1,064 locomotives.
Contracts were awarded to four rolling stock manufacturers:
Bombardier Transportation South Africa (now Alstom) for the supply of 232 electric locomotives;
CNR Rolling Stock South Africa (now CRRC SA Rolling Stock) for 240 diesel locomotives; CSR E-Loco Supply (now CRRC E-Loco Supply) for 359 electric locomotives;
GE South Africa Technologies (now Wabtec South Africa Technologies) for 233 diesel locomotives.
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