Transnet blames weak economy on low wagon output
Black industrialists who were set up specifically to supply Transnet have been particularly hard hit by the plunge in orders from the parastatal
The economic downturn has had a dramatic effect on Transnet’s wagon-procurement programme, with ripple effects on component manufacturers. Black industrialists who were set up specifically to supply Transnet have been hit particularly hard by the plunge in orders from the parastatal. Transnet Engineering CEO Thamsanqa Jiyane told Parliament’s trade and industry committee on Tuesday that in the 2016-17 financial year, only 100 wagons had been built, compared with the 4,119 that had been originally targeted. The previous year only 2,100 wagons were manufactured compared with the 3,692 wagons projected. Jiyane explained that Transnet Engineering only entered into wagon-building contracts when this was preceded by demand. As the economy slumped, the demand for cargo transport had declined. "The reduction in demand for wagons translated into low demand for the components related to these long-term contracts entered into," said Jiyane. "This has negatively impacted on anticipated localisa...
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