Name and Location
New Rolling Stock Procurement Programme, nationwide, South Africa.

Client
Passenger Rail Agency of South Africa (Prasa).

Project Description
The Department of Transport, through PRASA, is to invest in a new rail rolling stock fleet-renewal programme across South Africa.

The programme will upgrade and expand the current rail infrastructure by introducing new stock for commuter rail service Metrorail and long-distance locomotives and coaches for Shosholoza Meyl, and by offering more routes between destinations in South Africa.

The aim is to replace the current old and dilapidated fleet, which has reached the end of its design life.

As part of the procurement programme, PRASA aims to upgrade and construct fully functional modern maintenance depots at Braamfontein, Wolmerton, Salt River, Durban Yard and Springfield, which will be able to support and service PRASA’s new metro trains by the time the first new train sets are delivered in the first quarter of 2015. The new depots will provide for the maintenance demand of the new, increased fleet, and PRASA’s existing metro trains, until 2034.

Value
R123-billion.

An extra R14.5-billion will be invested in signalling, new depots, modern stations and integrated ticketing.

Duration
The 20-year procurement process will be divided into two periods, with the first ten-year contract running from 2015 and the second from 2025.

The first new trains are expected for delivery in 2015.

Latest Developments
PRASA and Gibela Rail Transportation have signed a R51-billion contract for the supply of 600 passenger trains, comprising 3 600 coaches, to be delivered between 2015 and 2025.

The contract also includes the construction of a local manufacturing facility.

Gibela will also provide technical support and supply spare parts to PRASA over the next 18 years.

The local manufacturing facility will be built in Ekurhuleni, east of Johannesburg, and will house an engineering centre and a training facility. Construction on the manufacturing facility is expected to start in 2014, with the factory to come on line in 2015.

This is one of the biggest rail transport contracts worldwide and the biggest ever awarded to Alstom.

Through the contract, PRASA will be supplied with the newly developed X’Trapolis Mega train, developed by Alstom to fit the 1 067 mm gauge in South Africa.

Each train will be able to travel at up to120 km/h, with the ability to be upgraded to 160 km/h. Each single-deck train will comprise six cars and will be able to carry more than 1 300 passengers.

The first 20 trains will be manufactured at Alstom’s facility, in Brazil, while the South African manufacturing facility is being completed.

The project will create more than 1 500 direct jobs in the local factory and more than 33 000 indirect jobs over the first ten years, achieving a local-content level of more than 65%.

Through the rolling stock programme, PRASA would procure 7 224 new rolling stock to the value of R123-billion over a 20-year period.

The procurement of the rolling stock was being done in two phases, with the first phase having been launched with the signing of the Gibela contract.

Key Contracts and Suppliers
KPMG, Gibb Engineering and Science, Interfleet Technology and Edward Nathan Sonnenbergs (feasibility study), as well as Gibela Rail Transportation, comprising Alstom and Actom (Phase 1 – rolling stock supply contract).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
KPMG corporate finance, Walter Meyer, tel +27 21 408 7220 or email market.engagement@kpmg.co.za.
Prasa, tel +27 12 748 7000; or head of communications Nana Zenani, cell +27 82 626 8844 or email nzenani@prasa.com.
Actom, tel +27 11 820 5111 or fax +27 11 820 5100.
Alstom, tel +27 11 518 8100.