http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 16.75Change: -0.22
R/$ = 14.48Change: -0.13
Au 1295.18 $/ozChange: 1.29
Pt 1077.50 $/ozChange: -6.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters About Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Oct 17, 2012

Decoupling of BEE, technology bids will broaden beneficiary base – Prasa

Back
Actom|Africa|Alstom|Business|Design|Engineering|Export|Locomotives|PROJECT|rail|Rolling Stock|rolling-stock|Technology|Transnet|transport|Africa|Canada|South Africa|Spain|Switzerland|Equipment|Maintenance|Preferred Technology Supplier|Ben Martins|Lucky Montana|Sifiso Buthelezi|South Africa
Africa|Business|Design|Engineering|Export|Locomotives|PROJECT|rail|Rolling Stock|rolling-stock|Technology|Transnet|transport|Africa||Equipment|Maintenance|||
actom|africa-company|alstom|business|design|engineering|export|locomotives|project|rail|rolling-stock|rolling stock|technology|transnet|transport|africa|canada|south-africa|spain|switzerland|equipment|maintenance|preferred-technology-supplier|ben-martins|lucky-montana|sifiso-buthelezi|south-africa-region



The State-owned Passenger Rail Agency of South Africa (Prasa), which is at the beginning stages of a multibillion-rand fleet procurement process, has officially launched the black–empowerment portion of the project, through which a 30% role has been set aside for participation by black investors, workers and industrialists.

The broad-based black economic-empowerment (BBBEE) request for proposals (RFP) has been separated out from the tender for the design, manufacture and maintenance of new commuter trains for delivery from, 2015 and the BBBEE tender documentation is currently available for a fee of R5 000.

The process is being conducted in parallel to the main equipment tender, for which seven companies and consortia submitted bids by the September 30 deadline. These companies include CAF, of Spain; Bombadier, of Canada; China South Rail (CSR); China North Rail; Gibela Rail Transportation, which is a French consortium comprising Alstom and Actom; Dudula Rail, a consortium comprising ABB South Africa and Stadler, of Switzerland; and CSR/Wictra, consortium comprising CSR and Wictra, of South Africa.

The winning rolling-stock supplier would hold 70% of the project delivery company, with the BBBEE equity participants holding the 30% balance. The BBBEE partners would be subject to a three-year lock-in period.

Prasa chairperson Sifiso Buthelezi said the decision to separate out the BBBEE component was informed by the company’s desire to ensure a genuinely broad-based empowerment structure that was decoupled from the technology offering.

Under the scheme, Prasa would insist that 10% of the 30%, or 33% of what is available for empowerment equity, was to be held by an employee trust, to benefit staff below the senior management level. The balance would be divided between black businesses active in the rail industry (10%), passive black investors (7%) and an educational trust (3%).

CEO Lucky Montana acknowledged criticism of the separation, particularly by those suggesting that it would lead to a “forced marriage” between the winning rolling-stock supplier and the winning BBBEE bidder.

But he argued that there were sufficient legal and contractual instruments available to ensure that the preferred technology supplier and the preferred equity partner were able to forge a workable partnership around the project, which could ultimately involve an investment of R123-billion and the purchase of 7 200 passenger coaches by 2035.

In the first ten-year phase, which was the current focus, the National Treasury had set an affordability limit of R40-billion and the number of coaches delivered within that envelope was currently the subject of the competitive bidding process.

Montana stressed, too, that the 65% localisation stipulation would also provide considerable scope for black businesses keen to participate as suppliers to the Prasa fleet renewal programme.

Empowerment companies with existing relationships with the seven bidders would be eligible to participate in the BBBEE tender, but Prasa stressed that recognition of such associations would not be treated as exclusive arrangements.

A compulsory briefing session had been scheduled for November 1 and bids should be submitted by December 14. The evaluation and selection could be completed by January 31, after which the preferred equipment and BBBEE bidders would be given an opportunity to interface ahead of financial closure.

The preferred equipment supplier could be announced by the end of September and once the BBBEE partner was identified the two participants in the project delivery company would have until around mid-2013 to reach financial close.

It was also confirmed that Transnet Rail Engineering (TRE) would provide the facilities for the production of the passenger coaches and had also been designated in the tender documentation as the conduit through which all technology transfer would occur.

The idea was to use TRE as the platform for the creation of a local rail manufacturer, with the capacity to design, manufacture and maintain locomotives and passenger coaches for South Africa and for export. In return the Transnet subsidiary would be expected to invest in a customised facility at which the preferred Prasa bidder would manufacture and assemble the passenger coaches.

Transport Minister Ben Martins argued that there was an opportunity through the process to create a new “template” for the way in which government pursued empowerment deals – one that encouraged broad-based participation and was aligned to the country’s industrialisation ambitions.

Martins encouraged black business to participate in the tender, but also highlighted the opportunity arising for “black industrialists” to supply into the Prasa programme.

“It can’t be correct that, whenever black people participate in ventures of this nature they only do so by way of a certain percentage of shareholding . . . We have to see black individuals creating value in this country by becoming industrialists,” the Minister asserted.

Edited by: Creamer Media Reporter

To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here
 
Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Transport & Logistics News
Updated 14 minutes ago South Africa's new vehicle sales fell by 9.2% year-on-year to 40 390 units in April, data from the trade and industry department showed on Tuesday. Exports rose 31.5% to 31 028 units compared with the same month last year, the department said.
Updated 2 hours 54 minutes ago The Airlines Association of Southern Africa (AASA) believes that the swift resolution of the issues that led to the temporary grounding of South African State-owned regional airline SA Express show that the industry and the aviation regulator can work swiftly and...
Updated 3 hours ago Figures from the National Association of Automobile Manufacturers of South Africa show that 617 749 new vehicles were sold in South Africa in 2015, marking a decline of 4% on the sales recorded in 2014 and representing the second consecutive year of decline for this...
More
 
 
Latest News
Mandi Glad
Updated 9 minutes ago A R42.5-million claim brought against coal mining company Keaton Mining by opencast mining services company Megacube Mining has been dismissed with costs. The JSE-listed Keaton said in a Stock Exchange News Service announcement on Tuesday that Megacube would also be...
Updated 14 minutes ago South Africa's new vehicle sales fell by 9.2% year-on-year to 40 390 units in April, data from the trade and industry department showed on Tuesday. Exports rose 31.5% to 31 028 units compared with the same month last year, the department said.
Darryll Castle
Updated 2 hours 53 minutes ago The medium-term game plan of African cement producer PPC is to find new resources, which will probably require it to engage in some form of exploration close to where urban development is expected in Africa. Over time, the resources side of the business is expected...
More
 
 
Recent Research Reports
Automotive 2016: A review of South Africa's automotive sector (PDF Report)
Creamer Media’s Automotive 2016 Report provides an overview of South Africa’s automotive industry over the past 12 months. The report provides insight into local demand and production, vehicle imports and exports, investment and competitiveness in the sector, as well...
Energy Roundup – April 2016 (PDF Report)
The April 2016 roundup covers activities across South Africa for March 2016 and includes details of a North Gauteng High Court Judge’s dismissal of a court application to postpone the 9.4% electricity tariff increase, which the National Energy Regulator of South...
Electricity 2016: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2016 report provides an overview of South Africa’s electricity sector, focusing on State-owned power utility Eskom and independent power producers, electricity planning, transmission, distribution and the theft thereof, besides other issues.
Energy Roundup – March 2016 (PDF Report)
The March 2016 roundup covers activities across South Africa for February 2016 and includes details of the Department of Energy’s plans to announce the preferred bidders for the first tranche of the coal independent power producer procurement programme; the Council...
Steel 2016: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2016 Report examines South Africa’s steel industry over the past 12 months. The report provides insight into the global steel market and and particularly into South South Africa’s steel sector, including production and consumption, main...
Construction 2016: A review of South Africa's construction industry (PDF Report)
Creamer Media’s Construction 2016 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; key participants; local demand; geographic diversification; corporate activity; black economic...
 
 
 
 
 
This Week's Magazine
The two spent-fuel pools at Eskom’s 1 800 MW Koeberg nuclear power station, in the Western Cape, will be full by 2018, increasing the urgency on the State-owned utility to begin pursuing alternative storage options. Koeberg has, over the past 32 years, accumulated a...
South Africa lacks the skills necessary to implement the government’s plan to build 9.6 GWe of new nuclear energy capacity, warns nuclear-qualified Quality Strategies International CEO David Crawford. “Apart from the concern about the affordability of the programme,...
DOROS HADJIZENONOS The 700-series devices provide network security monitoring, app control, URL filtering, VPN security, antivirus, antispam, antibot, and advanced intrusion prevention and detection functionality
Cybersecurity multinational Check Point has released its latest 700-series cybersecurity systems for small businesses, which draw on its international threat intelligence to provide up-to-date cybersecurity, says Check Point South Africa country manager Doros...
Daimler Trucks and Buses Southern Africa (DTBSA) saw a marked slip in new-vehicle sales in 2015 compared with 2014, with sales dropping from 5 897 units to 5 300 units. The decline came as the South African new truck and bus market declined from 31 558 units in 2014...
Group of 20 (G-20) economies threatened to penalise havens that don’t share information on their banking clients after the leak of the Panama Papers provoked a global uproar over tax evasion. The G-20 will consider “defensive measures” against financial centers and...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $149 Close
Subscribe Now for $149