MYSTERY surrounds how Transnet will verify adherence to local content requirements for its multibillion-rand rolling stock tender when the manufacturer that won the lion’s share of the contract is building locomotives offshore.The state-owned logistics group has given the assurance it will audit local content for the 1,064 locomotives being built by four international manufacturers — Bombardier, General Electric, and China North Rail and China South Rail Zhuzhou, now merged into China Railway Rolling Stock Corporation — at a R50bn price tag, to ensure local suppliers benefit. Transnet wants close to 60% local content.The deal presents special challanges that will play out against a backdrop of the Treasury and Department of Trade and Industry being at odds about how best to ensure compliance.The two are proposing widely differing approaches, with the Treasury preferring flexibility, while the department wants compliance legislated and regulated.They also differ as to which party sho...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.