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Locomotive manufacturer sources local suppliers

TRAXX AFRICA
Bombardier has been manufacturing this dual-voltage, multi-systems locomotive for ten years

TRAXX AFRICA Bombardier has been manufacturing this dual-voltage, multi-systems locomotive for ten years

Photo by Bombardier

27th June 2014

By: David Oliveira

Creamer Media Staff Writer

  

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Rail technology manufacturer Bombardier Transportation South Africa (BTSA) is in the process of negotiating and signing supplier subcontracts for the supply of 240 electric locomotives at a base cost of R10.4-billion to State-owned rail operator Transnet.

Bombardier Transportation business development director David Anglin explains that the design review for the project is awaiting approval from Transnet, while the remaining project documents are being put together before manufacturing can start.

He adds that BTSA has only secured Transnet Engineering (TE) as a subcontractor for the project and is in the process of signing contracts with other suppliers.

“This is significant, as TE has massive infrastructure capabilities throughout the country. We have agreed that they are a qualified supplier for this project and we are already engaging with them on this project,” says BTSA Southern Africa chief country representative Aubrey Lekwane.

Anglin states that the suppliers for this project will be a mix of global suppliers Bombardier does business with, which have a local base, and local suppliers the company has not previously worked with.

“We have been in discussion with a number of suppliers to make sure we get a balanced structure through the industry, which is key to the modernisation and industrialisation strategies of South Africa,” he adds.

Lekwane says: “This project will lay the foundation for BTSA to look at export opportunities within the Southern African Development Community and other areas, such as South America, where we have existing business.”

Anglin explains that BTSA will be supplying the TRAXX Africa platform, which is modelled on the European-deployed TRAXX platform. “We have been manufacturing this dual-voltage, multisystems locomotive, which can run on alternating or direct current, for ten years.

“This is a successful platform and we are re-engineering the platform to handle the more demanding operational requirements of Transnet,” he asserts.

Anglin notes that all 240 of the electric locomotives will be manufactured in South Africa, while Lekwane states: “This is a somewhat radical approach, as we are not going to be building locomotives elsewhere and then transfering completed units for testing. The very first locomotives will be taking shape here in South Africa.”

Anglin says that while Transnet requires a local content quota of 60%, BTSA will strive to reach beyond this. He notes that BTSA is still assessing the final level of local content, owing to the tender changing from one supplier for 599 electric locomotives to its being split between BTSA and Chinese locomotive manufacturer China South Rail Zhuzhou Electric Locomotive.

Meanwhile, Lekwane notes that Bombardier is now 26% owned by local employee and business trusts, of which 20% is allocated towards current and future black-owned businesses and the remaining 6% is dedicated to current and future workers of BTSA.

“The employee stock ownership plan unit holders are intended to benefit the majority of black workers, while select business unit holders must achieve at least 75% black equity ownership to qualify for the scheme,” he says.

Lekwane adds that, at the time the restructured entity started operations, it decided to give units to some of the black-owned businesses that emerged as a result of the Gautrain project. “We identified three companies that provided a range of services to the Gautrain project, which included a company involved in transportation services, cleaning services and stationary supply.

“Since the introduction of 26% broad-based black equity players in Bombardier Transportation from July 2012, BTSA has submitted a number of large bids and was successful in the supply of a rail control signalling upgrade for Prasa and, of course, the locomotive contract award

.

The locomotive contract award has resulted in sharp interest from specific black manufacturers to acquire broad- based black business units offered in the BTSA scheme,” Lekwane concludes.

Edited by Megan van Wyngaardt
Creamer Media Contributing Editor Online

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