http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.12Change: 0.07
R/$ = 10.90Change: 0.06
Au 1234.93 $/ozChange: -1.99
Pt 1364.00 $/ozChange: -4.00
 
 
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 Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jun 25, 2012

New venture to make diesel locomotives in SA for local, African markets

Back
Engineering|Johannesburg|Africa|Caterpillar|Components|Diesel|EMD|Locomotives|Motors|Progress Rail Services|Africa|Brazil|South Africa|United States|Motors|Products|Railway Products|Supply Chains|Billy Ainsworth|Infrastructure|Motors|Rail|Locomotive|Locomotives|Motors|Minas Gerais|Diesel
Engineering||Africa|Components|Diesel|Locomotives|Motors||Africa||Motors|Products||Infrastructure|Motors|Rail|Locomotive|Locomotives|Motors||
engineering|johannesburg|africa-company|caterpillar|components|diesel-company|emd|locomotives|motors-company|progress-rail-services|africa|brazil|south-africa|united-states|motors-industry-term|products|railway-products|supply-chains|billy-ainsworth|infrastructure|motors-person|rail|locomotive|locomotives-product|motors|minas-gerais-province-or-state|diesel
More Insight
© Reuse this



The production of Electro-Motive Diesel (EMD) railway locomotives in South Africa is set to recommence following the announcement on Monday of a joint venture (JV) between US railway products and services company Progress Rail Services and EMD (part of the Caterpillar group) and Barloworld. The programme will involve a “significant” but undisclosed investment in South Africa by the US company.

The timescale for the re-establishment of an assembly plant in South Africa has also not been divulged. Various options are being evaluated. “We could move pretty quick” said Progress Rail Services and EMD CEO Billy Ainsworth at Barloworld corporate offices in Sandton, north of Johannesburg.

Although some components will be imported, localisation will be a key part of the programme. “Our goal is to do as much as we can in South Africa.” He cited Brazil as an example, where the first locomotives off the new Sete Lagoas assembly plant (in the state of Minas Gerais) have a local content approaching 50% – the aim is to increase this to at least 60%.

The company plans to benefit from the fact that a number of South African companies already form part of the supply chains of other Caterpillar group companies. “We’ll be able to leverage the Caterpillar supplier network in South Africa,” he affirmed.

Although Barloworld is a well-established partner of Caterpillar, Ainsworth made a point of stating that the South African company had not been selected because of this relationship.
Rather, it was because of the infrastructure, knowledge and skills that Barloworld could bring to the JV.

“We’re not just a locomotive company and we’re not coming to South Africa just as a locomotive company,” he stated. “We have a very broad net. Customers can come to us for one-stop shopping.” The company is divided into two divisions – locomotive and railcar services and engineering and track services (the latter including signalling).

Nor is South Africa the only target market. “It’s really going to serve sub-Saharan Africa,” explained Ainsworth.”We like Africa. We look at Africa and see lots of opportunities. Interest rates are low. Inflation is under control. It’s an area that makes sense to invest in, over a long time.”

Earlier in the twentieth century EMD, then part of the General Motors group, produced locomotives in South Africa, but withdrew from the country as a result of anti-apartheid sanctions. Some 800 EMD locomotives were supplied to South African operators. Many are still in operation.

Meanwhile, Sibani Mngomezulu has been appointed as CEO of Electro-Motive Diesel Africa.

“We have every confidence that under Sibani’s leadership the Electro-Motive Diesel Africa team will realise their vision of becoming the rail solutions provider of choice in South Africa and the region,” commented Barloworld CEO Clive Thomson.

 

Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Transport & Logistics News
Updated 7 hours ago Construction on the bus rapid transport stations for Phase 1A of the Rustenburg Rapid Transport (RRT) project was likely to start before the end of the year, with the construction tenders currently being adjudicated, RRT said on Tuesday. Phase 1A of this four-phase...
As from April 2017, the Department of Trade and Industry (DTI) aims to only support the completely knockdown production (CKD) of trucks in South Africa, and no longer semi-knockdown (SKD) assembly, says DTI automotive chief director Mkhululi Mlota. “It is not yet...
A view of the DAe plant in Kempton Park, east of Johannesburg
South African aerospace companies Aerosud and Denel Aerostructures (DAe) signed a tripartite memorandum of understanding (MoU) with European major airliner company Airbus at the DAe plant at OR Tambo International Airport, in Kempton Park, on Tuesday. The MoU creates...
More
 
 
Latest News
Construction on the bus rapid transport stations for Phase 1A of the Rustenburg Rapid Transport (RRT) project was likely to start before the end of the year, with the construction tenders currently being adjudicated, RRT said on Tuesday. Phase 1A of this four-phase...
Hundreds of innovators and entrepreneurs have gathered in Cape Town to discuss how to support more innovation in South Africa in a bid to drive the economy forward. Venture capitalists, dealmakers, entrepreneurs and academics have been mingling at the South African...
South African business leaders were more likely than their global counterparts to encourage creative behaviours and “disruptive processes” to drive innovation, the South African results of the GE Global Innovation Barometer, released on Tuesday, have shown. The 2014...
More
 
 
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
 
 
 
 
 
This Week's Magazine
The board of UD Trucks Southern Africa (UDTSA) has announced the resignation of MD Jacques Carelse.   Long-time UD employee, corporate planning and marketing GM, Rory Schulz, has been appointed as acting MD while the process started to appoint a new MD. The Japanese...
There is a need to start planning another pumped storage scheme in South Africa. Much work has already been done at a site in the Limpopo province and the project was very close to being put out to tender at one stage. In 2008/9 the National Energy Regulator of South...
The Coega Development Corporation (CDC) is preparing to leverage its strategic coastal position to develop the Eastern Cape economy through proposed aquaculture development zones (ADZs), with a proposed R2-billion project aiming to contribute $278-million to the...
Completion of the ongoing construction of the 102 km Zomba–Jali–Phalombe–Chitakale road, in southern Malawi, has been extended from June  to December 15 because of persistent rains and difficulties in paying the contractor. The project is being undertaken by Kuwait's...
The Malawi government has awarded South African firm  Fischer Consortium the  contract to upgrade the Malawi Road Traffic Information System. The Directorate of Road Traffic and Safety Services at Malawi's Ministry of Transport and Public Works says Fischer...
 
 
 
 
 
 
 
 
 
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