Transnet is a state-owned freight, rail, port, and pipeline logistics company in South Africa.
The North Gauteng High Court has dismissed an urgent application by Transnet to compel IT services provider Gijima to complete critical data migration and disengagement services after the end of a R1.5 billion IT tender.
Despite the contract reaching its stated term, the court found that the state-owned logistics company was not technically ready to receive the services it sought to enforce.
In a detailed judgement handed down by Judge AJ Minnaar on Thursday, the court found that Transnet had launched its application prematurely and without having met its own contractual obligations under the master services agreement with Gijima.
Earlier this year, Transnet approached the court seeking an urgent order directing Gijima to complete its disengagement from Transnet’s IT environment – including the migration of data centre services, SAP workloads, and the company’s Active Directory – by30 June 2025.
The application also sought to interdict Gijima from disrupting any services pending completion of the disengagement.
Gijima opposed the application, arguing that disputes of fact existed and that it was impossible to perform the required tasks because Transnet had not provided a viable transition plan or demonstrated technical readiness.
The IT company also invoked “exceptio non adimpleti contractus”, a legal principle that allows a contracting party to withhold performance until the other has fulfilled its reciprocal obligations.
This means some of Transnet’s critical operations would go offline should Gijima pull the plug on them.
Following extensive oral evidence from both Transnet and Gijima witnesses — including Transnet group CIO Pandelani Munyai and Microsoft South Africa representative Ravi Bhat — the court found that Transnet’s transition plan was incomplete and that even the preliminary assessment of its mainframe systems had not begun when the application was filed.
Judge Minnaar described Transnet’s decision to proceed with litigation despite these shortcomings as “reckless”, noting that it resulted in unnecessary costs and delays.
The judgment states: “The attempt to compel performance in the face of Transnet’s own material non-performance is not only without merit, but also impermissible.”
The court further criticised Transnet’s attempt to amend its notice of motion mid-proceedings, calling it procedurally flawed and prejudicial to Gijima.
In the end, the court ruled in Gijima’s favour, dismissing the application with costs — including the costs of two counsel — on the punitive attorney-and-client scale.
Judge Minnaar said the case underscored the importance of readiness and mutual compliance in large-scale IT transitions, especially when critical national infrastructure is involved.
This is not the first time the disputed contract has made the headlines. In 2018, German IT firm T-Systems South Africa withdrew from a disputed R1.5 billion Transnet IT services contract, paving the way for local company Gijima to take over the five-year deal.
The move ended a lengthy court battle after Transnet’s new board, appointed by the late public enterprises minister Pravin Gordhan, sought to reverse the earlier award. Gijima, which offered to deliver the services, hailed the outcome as a major victory and pledged to modernise Transnet’s IT systems.
The resolution came amid broader governance reforms at Transnet, including the dismissal of former CEO Siyabonga Gama over tender controversies.
Gijima acquired T-Systems South Africa in 2020.
In a statement to ITWeb yesterday, Gijima welcomed the ruling, saying since the start of the contract with Transnet, the company has successfully transitioned and maintained the IT environment, consistently achieving over 99% uptime for more than five years – without a single breach, “Priority 1” incident nor interrupted services – “thereby ensuring the continuous safety and operational stability of Transnet’s critical systems that drive the rail and port logistics for South Africa and SADC.
“On 16 October 2025, Transnet was highly criticised in a judgement handed down in the Gauteng Division High Court in Pretoria by acting Judge Minnaar, who dismissed an urgent High Court application instituted by Transnet against Gijima to exit the soon-to-expire contract,” says Gijima.
“In its urgent application, which was found not to be urgent, Transnet sought an order directing Gijima to hand over the IT services to Transnet. What Transnet failed to appreciate is that in order to do so, Transnet needed to be equipped and upskilled to assume such services, which Transnet is not, as per the judgement. Gijima is a long-standing systems integrator with deep domain knowledge of disengaging and the transitioning of complex IT contracts.”
The company explains that the services in question include data centre and hosting services which involve providing the necessary services and activities to support Transnet’s centralised production, quality assurance and development computing environments 24/7 using Gijima’s data centre.
It says these services cater to the entire country’s rail network running container and wagon services over thousands of kilometres of rail with hundreds of depots and shunting yards.
Transnet group chief information officer Pandelani Munyai.
Gijima adds that it persistently held the view that Transnet’s application was premature given that the relief sought would prejudice not only Transnet, but South Africa given the vital dependency the country has on Transnet’s logistics delivery.
“Transnet, however, did not heed Gijima’s warnings about its approach which was adversely impacting the contract.
“Gijima welcomes the High Court’s recognition of proper procurement principles and the rule of law, reinforcing confidence in South Africa’s justice system.
“Gijima again commits to an orderly disengagement and hopes Transnet shall also begin with its transition plan when the parties meet.”
In a statement to ITWeb regarding the court ruling, Transnet says it is still studying the judgement. “The company will take all required lawful steps to protect its interests in securing the insourcing of its ICT services. The contract with Gijima has expired, and the focus will be on orderly disengagement of the Gijima services.”
It is understood by ITWeb that Transnet has been on a recent programme to significantly reduce its IT budget. This is being achieved largely through a path of insourcing contracts, with Liquid Telecoms and Gijima two of the providers whose services it is seeking it reduce or replace.
In this regard, Transnet has recently completed a private data centre in Durban and colocation facility partnership with Vodacom, in Midrand.
