Hope Diamond Transport loses lucrative contracts, so buses are idle

Major customers have terminated their arrangements with Musina company

Hope Diamond Transport says 11 of its buses will remain idle after a number of companies which had contracted it to transport their employees terminated their contracts. 

The Musina-based company, in a letter to managers, staff and shareholders on Monday, said it had received contract termination notices from key partners including Murray & Roberts, Concor and TDS. It said these terminations came at a time of economic uncertainty and significant challenges in the mining industry, particularly in the diamond sector. 

The company said the termination of the contracts would have a substantial effect on its operations. It said Concor and Murray & Roberts contributed about 31% of the company’s revenue.

“As a result, 11 buses and/or smaller vehicles will be left without operation, affecting the transportation needs of about 1,100 passengers across three shifts.” 

In September last year in Musina, a bus belonging to Hope Diamond Transport carrying Murray & Roberts employees travelling to the Venetia mine was involved in a head-on collision with a truck and both caught fire. Seventeen Murray & Roberts Cementation employees, the bus driver from Hope Diamond Transport, the truck driver and a passenger in the truck died. 

Hope Diamond Transport said the board had directed management to submit a plan to address this loss of business and outline mitigation measures. 

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