Transnet of South Africa Plans to Scrap GE, Bombardier Contracts
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South Africa’s state-owned rail and port company said it plans to scrap contracts worth billions of dollars awarded to companies including General Electric Co. and Bombardier Inc. seven years ago.
Transnet SOC Holdings Ltd. applied to the nation’s High Court to have the contracts for 1,064 locomotives set aside because they were based on a “flawed market demand strategy,” it said in a statement Tuesday. The value of the contracts, which were also awarded to CRRC E-Loco Supply Ltd. and CNR Rolling Stock South Africa Ltd., was 54.4 billion rand ($3.5 billion).