South African rail operator Transnet is planning to declare ‘force majeure’ on its “take-or-pay” contracts because of its inability to perform at its stated system capacity. Transnet has notified coal export parties that the ongoing problems of vandalism and wagon unavailability due to legal issues are “beyond its reasonable control”. Under this force majeure, buyers cannot penalise Transnet if it fails to provide the decided railings for coal transportation.
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