Uneasy truce: Gijima’s owner Robert Gumede says the IT firm prefers its exit from Transnet to be in line with
best practice.
IT services company Gijima says it is committed to maintaining the continuity and sustainability of South Africa’s railway economy despite state-owned freight transport and logistics company Transnet’s persistent efforts to sever relations.
Transnet is currently appealing a recent Gauteng North High Court ruling which dismissed its urgent application to compel Gijima to complete critical data migration and disengagement work following the expiry of a R1.5 billion contract.
Transnet had sought a ruling directing Gijima to complete all disengagement services, take all steps necessary to migrate data centre services to itself and to interdict the IT company from “engaging in any conduct that disrupts or interrupts the provision of services”.
The court ruled that Transnet was not ready to take over the critical IT services from Gijima when the five-year agreement expired.
It said Transnet did not at the time “possess the technical capability, infrastructure, or skilled personnel to assume the services”, adding that what the firm sought to do was as good as reckless behaviour.
But in its appeal Transnet argued that the court erred in its interpretation of Gijima’s obligations regarding the migration of both mainframe and non-mainframe applications. The state entity contended that Gijima has not fully cooperated and Transnet is in fact ready to assume the services.
Gijima’s owner Robert Gumede said Transnet’s objection “has no merit”, and maintained that the freight logistics entity’s lack of readiness could result in dysfunction.
“In compliance with its obligations, Gijima commenced preparations for a structured disengagement and handover process. However, Transnet’s lack of readiness and cooperation threatened to jeopardise the stability thereof, and by extension, the broader railway economy of South Africa,” Gumede said.
Gumede said Gijima was not against handing over, but wanted it done in line with best practice that would not jeopardise operations.
“Gijima looks forward to Transnet’s compliance with the court order and remains committed to ensuring continuity and sustainability of South Africa’s railway economy within the scope of its obligations,” he said.
“Gijima again commits to an orderly disengagement and hopes Transnet shall also begin with its transition plan when the parties meet. However, Gijima committed to both the court and Transnet that it will not jeopardise the smooth operations of Transnet, especially [Transnet Freight Rail], whose uninterrupted services are a lifeblood of the country’s transport logistics.”
Transnet officially started working with Gijima in March 2019, following a December 2018 court order.
The engagement came after a lengthy legal battle over a five-year IT services contract that was initially awarded to T-Systems, an award which the court overturned. The contract term was set to run until June 30, 2025.