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Gautrain additional rolling stock and depot enhancement procurement programme, South Africa

11th May 2018

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

     

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Name of the Project
Gautrain additional rolling stock and depot enhancement procurement programme.

Location
Gauteng, South Africa.

Client
Gautrain Management Agency (GMA), an agency of Gauteng Provincial government (GPG).

The Gautrain is operated by the Bombela Concession Company (BCC).

Project Description
The project involves the acquisition of additional rolling stock comprising 12 new trains of four cars each and a workshop for the maintenance of the new trains.

The first contract includes the design, supply and maintenance of the new rolling stock, as well as the design, construction and maintenance of the depot extensions to accommodate the new trains. Three service providers have been pre-qualified and will participate in the bidding process.

Jobs to be Created
The project is expected to sustain 10 000 jobs in Gauteng.

Value
The total project value is estimated at R2.5-billion.

The GPG will be the owner of the project and funding will be provided by the Development Bank of Southern Africa.

It is, however, amenable to alternative funding options as presented by the successful bidder.

Duration
The new rolling stock is planned to start operations towards the end of 2021.

Latest Developments
The announcement of the preferred bidder to provide 12 new four-car trains for the Gautrain system has been delayed by technical and legal complexities, GMA CEO Jack van der Merwe has said.

The three prequalified bidders for the new rolling stock project are Bombardier Transportation, CRRC E-Loco Supply and Egoli Rail Consortium.

The Bombardier Transportation bid consists of Bombardier Transportation South Africa as the supplier, with the Strategic Partners Group (SPG) and Bombardier Transportation UK  shareholders in the group to maintain the rolling stock.

Bombardier and SPG are shareholders in Bombela, the Gautrain operator.

Bombardier Transportation is the rail equipment division of the Canadian firm Bombardier. It supplied the current Gautrain stock.
 

The CRRC E-Loco Supply bid includes CSR Zelc (SA) and the Matsete Basadi group as shareholders.

The two companies have partnered previously to deliver electric locomotives to South African State rail freight group Transnet.

CRRC E-Loco Supply is the South African subsidiary of China’s CRRC Zhuzhou Locomotive.

The Egoli Rail Consortium consists of Alstom Southern Africa, EOH Intelligent Infrastructure and Ubumbano OpCo.

The Gibela consortium, which is supplying Metrorail with 600 new commuter trains from a factory on the East Rand, is 61%-held by Alstom Southern Africa and 30% by Ubumbano Rail. 

It has, however, emerged in recent months that Gibela is a special purpose vehicle and that the East Rand plant may not be used to produce any rolling stock other than for the Metrorail contract.

Also, Alstom has since the closure of the tender box been taken over by Germany-based Siemens, while CRRC has run into problems regarding its Transnet contract.

The complexities that have emerged regarding the Gautrain rolling stock pertain to the 48 train cars being acquired going going to operate significantly longer than the current Bombela concession period, set to end in 2026, Van der Merwe explains.

This means the train cars will have to be held in a trust, which will hire the rolling stock to Bombela, he adds.

“The difference in rolling stock is not the problem, neither is funding. We have secured the funding necessary to execute the project. The challenge is how to structure the acquisition and use of these new train cars in a concession with a different life cycle.”

Van der Merwe emphasises, however, that the new rolling stock will have to operate at the same standards as the current Gautrain rolling stock.

He expects the GMA to announce the preferred bidder and the reserve bidder by August this year, with financial close expected in early 2019.

Other expected improvements to the Gautrain system in the coming two years include upgrading the signalling system to reduce the time (headway) between trains, thereby increasing capacity on the network.

“We are also looking at adding an additional, fourth power source to enhance electricity supply to the system,” Van der Merwe has said.

The deal was expected to reach financial close at the end of last year.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
GMA senior executive manager communication and marketing Dr Barbara Jensen, email barbaraj@gautrain.co.za.

 

Edited by Creamer Media Reporter

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