http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 17.94Change: -0.16
R/$ = 15.91Change: -0.07
Au 1198.53 $/ozChange: 5.48
Pt 936.00 $/ozChange: 3.50
 
 
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  
 
 
Jun 25, 2012

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

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

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
Craig Uren
The price of a new truck in South Africa will probably increase by around 10% in the first half of this year, estimates Isuzu Truck South Africa (ITSA) director and COO Craig Uren, with another 5% possible in the second half of 2016. These general price increases are...
The use of an SMS that directs Gauteng e-toll users to pay outstanding fees is illegal, said the Organisation Undoing Tax Abuse (Outa) on Wednesday. Outa, which changed its name from Opposition to Urban Tolling Alliance recently, said it needed the public to...
Much Asphalt has completed the acquisition of SprayPave, following Competition Commission approval for the transaction, says Much Asphalt MD Bennie Greyling. Much Asphalt is South Africa’s largest manufacturer of asphalt products. The company’s acquisition of...
Article contains comments
More
 
 
Latest News
Steel producer Evraz Highveld Steel and Vanadium announced on Wednesday that the Department of Labour had put a “pause” to Training Layoff Scheme (TLS) payments in response to confirmation that the proposed sale of the business to International Resources Limited...
About 2 000 workers at LafargeHolcim's South African unit will on Thursday launch an open-ended strike over pay, a labour union said on Wednesday. "The industrial strike would encompass the entire workforce and it will be a total withdrawal of labour by our members...
French Economy, Industry and Digital Affairs Minister Emmanuel Macron has announced the creation of six new French tech hubs in Cape Town, San Francisco, London, Tokyo, New York and Hong Kong. “I am delighted that Cape Town has been designated as a French tech hub....
More
 
 
Recent Research Reports
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...
Energy Roundup – February 2016 (PDF Report)
The February 2016 roundup covers activities across South Africa for December 2015 and January 2016 and includes details of a Government Gazette notice that confirms Cabinet’s decision to move ahead with the 9 600 MW nuclear procurement programme; State-owned power...
Energy Roundup - December 2015 (PDF Report)
The December 2015 roundup includes details of State-owned utility Eskom’s application to claw back R22.8-billion; South Africa’s ranking as an investment destination for renewable energy; and a nuclear expert’s thoughts on reactor designs for South Africa’s nuclear...
Water 2015: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2015 Report considers the aforementioned issues, not only in the South African context but also in the African and global context in terms of supply and demand, water stress and insecurity, and access to water and sanitation, besides others.
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
 
 
 
 
 
This Week's Magazine
Power and automation company ABB is in the launch phase of its highest payload, multipurpose industrial robot, the IRB 8700. The robot has a reach of 3.5 m and can handle a payload of up to 800 kg. “When designing the IRB 8700, we emphasised reach and payload, as...
Identity and Access Management (IAM) is a critical facet of a connected security ecosystem, as controlling the confidentiality, integrity and authorisation of data access and use is key to securing new digital business channels. However, companies face several...
RORY YOUNG Managed security services provide companies with a means to actively monitor their environment and ward against threats
Data underpins digital business models, the digital economy, the Internet of Things and the fundamental changes in the ways people interact and protecting data is crucial to securing new ways of doing business, says T-Systems South Africa information and...
The City of Cape Town will issue a tender for the procurement of electric buses for its MyCiTi service, in line with the council’s commitment to lower its carbon footprint, says executive mayor Patricia de Lille. The tender, to be advertised early in February, will...
The iSimangaliso Wetland Park Authority signed a R10-million contract last month with local tailings storage facility specialists Cyclone Engineering Projects to remove about 100 000 m3 of dredge spoil obstructing the natural course of the uMfolozi river, in...
 
 
 
 
 
 
 
 
 
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