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Liebherr in a New South Africa's Deal with Green Port Contract after 2023 Corruption Settlement

Liebherr in a New South Africa's Deal with Green Port Contract after 2023 Corruption Settlement
Friday, 19 September 2025 05:13
  • Liebherr comeback: German-Swiss group wins 10-year crane contract with Transnet after 2023 corruption settlement.
  • Green focus: Hybrid and diesel-electric cranes to cut CO₂ emissions by up to 50% and support South Africa’s 2050 neutrality target.
  • Strategic shift: Europe scores a rare port infrastructure win in Africa, countering Chinese dominance

Liebherr, the German-Swiss equipment maker, has secured a major new contract in South Africa, marking a comeback two years after settling a corruption dispute with state-owned Transnet. The 10-year partnership, announced September 18, covers the supply and long-term support of port cranes, with an emphasis on cleaner, more efficient technology.

The deal revives a relationship tarnished by a 2023 settlement in which Liebherr paid R54 million ($3.2 million) to resolve irregularities in earlier contracts for 22 cranes at the Port of Ngqura. Investigators linked payments to intermediaries used during the period of “state capture” under Jacob Zuma’s presidency. While no direct evidence of bribery by Liebherr was proven, civil society groups criticized the settlement as lenient and symbolic of South Africa’s broader failure to deter misconduct.

The new contract reflects a different climate. Under CEO Jabu Mdaki , Transnet Ports has sought to restore credibility after years of graft and challenges that contributed to port congestion and supply chain bottlenecks. The agreement with Liebherr forms part of a R3.4 billion equipment renewal program expected to lift container throughput by up to 20% and cut operating costs by 10–15%.

Initial orders include four ship-to-shore cranes for Durban and 48 rubber-tyred gantry cranes split between Durban and Cape Town. Liebherr will assemble equipment locally to meet empowerment rules and will operate a new service hub and training campus in Durban, providing round-the-clock maintenance support. The company is also expected to deliver rail-mounted gantries and mobile harbour cranes over the life of the contract.

The partnership has a strong environmental dimension. Liebherr’s cranes use hybrid or diesel-electric systems that emit 30–50% less CO₂ than older diesel models. Transnet has committed to electrify half of its port equipment by 2030 and reach carbon neutrality by 2050. Durban and Cape Town, which account for significant local air pollution, stand to benefit from the introduction of lower-emission machinery.

Strategically, the deal gives Europe a rare win in Africa’s port infrastructure market, where Chinese firms dominate. China Harbour Engineering Company and China Merchants Port Holdings are active in more than 30 countries, often backed by Belt and Road Initiative financing. Liebherr’s success in Durban and Cape Town signals that European suppliers, leveraging technology and environmental standards, can still compete without the debt concerns tied to some Chinese projects.

The agreement also illustrates how South Africa is seeking to diversify its partners while modernizing critical infrastructure. Ports handle 96% of the country’s trade and contribute about 7% of GDP. Improvements in efficiency and reliability are vital as exporters of minerals such as platinum, manganese and coal seek to maintain competitiveness in global markets.

For Liebherr, the contract marks both rehabilitation and opportunity. The company has strengthened its compliance systems since 2023 and now positions itself as a provider of premium, sustainable equipment. For Transnet, the test will be whether governance reforms and technology upgrades can translate into visible gains for an economy still hampered by weak logistics. Success would boost investor confidence, while failure risks reinforcing doubts about South Africa’s capacity to turn the page on its state-capture era.

Idriss Linge

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