Transnet hits a legal roadblock

Transnet has withdrawn a confined tender process for the supply and delivery of railway rails following legal action filed against it by Guma Solutions.

The state-owned logistics company filed a closed market enquiry request for proposal (RFP) on 15 April 2026, through its Transnet Rail Infrastructure Manager (TRIM) division.

The RFP was opposed by local supplier Guma Solutions, which alleged that the procurement process had been restricted to international original equipment manufacturers (OEMs).

Guma Solutions filed an application for an interim interdict with the Gauteng High Court on 29 April to halt the procurement process pending a full administrative review.

The Black Business Council (BBC) said on 15 May that it had instructed its attorneys to join the legal action and support Guma Solutions as amicus curiae (friends of the court).

In an interview with Newzroom Afrika, BBC CEO Kganki Matabane said the decision to exclude South African suppliers and intermediaries was unconstitutional.

“You can’t have a situation where almost 50% of people are unemployed in South Africa, and you decide to go and create jobs in other countries,” Matabane said.

“The tender by Transnet was basically an exclusive tender where they decided to select a few companies themselves, but all those companies were international. There was not even one South African company.”

The original tender reportedly restricted participation to six foreign OEMs based in China, Austria, Japan, Spain, France and the United Kingdom.

TRIM supply chain general manager Basani Duiker defended this decision in an affidavit, saying the urgency of the matter necessitated the exclusion of intermediary suppliers such as Guma.

Matabane said the BBC did not buy this reasoning, and alleged that Transnet was already responsible for the closure of many local OEMs through its previous tenders.

“They have been procuring from international companies at the exclusion of South Africans,” Matabane said. “How do we develop our own manufacturing if South African companies do not receive any tenders?”

“The products they were procuring are not ready-made. They have to be specced, the factory has to be made ready, and it will have a lead time like any other big procurement of equipment.”

Transnet withdraws the tender

While Transnet initially seemed poised to defend the tender against Guma and the BBC, it has now reversed its position and decided to withdraw it instead.

A report from Freight News said the withdrawal had been communicated in writing to Guma Solution’s attorney, Nicqui Galaktiou, and her legal team.

“Transnet has revised its sourcing strategy for rails, hence the withdrawal of the RFP,” the state-owned enterprise told Freight News.

“Transnet remains committed to a fair, transparent and legally compliant procurement framework that balances operational requirements with localisation and transformation objectives.”

Freight News also reported that the tender award had not yet been finalised according to court documents, with indications that the evaluations would only conclude in August.

The withdrawal of the tender thus means the RFP will not proceed as intended, and will likely need to be resubmitted in order to continue.

Matabane said a resubmission of the tender should seek to actively encourage participation from South African companies.

This, he explained, was not meant to exclude the bidding of companies from foreign countries, but to create competition which would be healthy for South Africa’s economic growth and job creation.

Matabane said this would align with the regulations set out in the Procurement Act, as well as section 217 of the South African Constitution.

“They will have to reissue the tender, open it to everyone and let people compete,” Matabane said. “In the tender, they have to allow for South African companies.”

“The companies are there. We know a few that are on business rescue, but they have not been given opportunities or tenders, hence they are closing down.”

Matabane said the BBC was open to negotiations with Transnet in determining the best direction for the rail procurement going forward that would be to the benefit of all South Africans.

Daily Investor reached out to Transnet for comments on the withdrawal of the tender and its plan going forward, but had not received a response at the time of publishing.