http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.04Change: -0.16
R/$ = 12.07Change: -0.10
Au 1204.60 $/ozChange: 1.40
Pt 1170.50 $/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 Letters 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|Services|Solutions|Supply Chains|Billy Ainsworth|Infrastructure|Motors|Rail|Locomotive|Locomotives|Motors|Minas Gerais|Diesel
Engineering||Africa|Components|Diesel|Locomotives|Motors||Africa||Motors|Products|Services|Solutions||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|services|solutions|supply-chains|billy-ainsworth|infrastructure|motors-person|rail|locomotive|locomotives-product|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 Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Transport & Logistics News
The last of the 26 mooring units comprising the Port of Ngqura’s automated mooring system (AMS) have arrived at the port and are expected to improve port efficiency and safety, further driving the Transnet National Ports Authority’s (TNPA’s) objective of establishing...
Acting Transnet CEO Siyabonga Gama
Acting Transnet CEO Siyabonga Gama, who was appointed to the position following the surprise secondment of Brian Molefe to Eskom, has placed revenue diversification at the top of his list of immediate priorities, with the weak commodity outlook seen as having the...
Monwabisi Kalawe
Suspended South African Airways (SAA) CEO Monwabisi Kalawe has resigned, with immediate effect, as his relationship with the State-owned carrier had been “irretrievably broken down”. The step was taken following arbitration proceedings between Kalawe and SAA, in the...
More
 
 
Latest News
South African mining and energy adviser Ted Blom has raised a litany of concerns about the state of power utility Eskom and has warned of runaway costs and shortfalls in coal and water, as well as rail capacity. Blom was surprised by the recent buoyancy shown by...
JSE-listed Astrapak will sell specialised packaging systems manufacturer Knilam to Mapflex SA for R17.7-million. The proceeds would be used to reduce Astrapak’s current level of gearing.
The last of the 26 mooring units comprising the Port of Ngqura’s automated mooring system (AMS) have arrived at the port and are expected to improve port efficiency and safety, further driving the Transnet National Ports Authority’s (TNPA’s) objective of establishing...
More
 
 
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
 
 
 
 
 
This Week's Magazine
Sappi Southern Africa CEO Alex Thiel
Forest products group Sappi has confirmed the selection of its 25 MW biomass-to-power project, to be erected at its Ngodwana mill, in Mpumalanga, as a preferred bidder under the South African government’s Renewable Energy Independent Power Producer Procurement...
Information and communications technology (ICT) distributor DCC is making Windows- and Android-operating systems tablets available through retailers and education equipment suppliers to provide school children with affordable, high-performance education tools. The...
Another cement manufacturer is set to enter the Ugandan market, raising hopes that prices will come down and spur growth in the construction industry. National Cement, a Kenyan manufacturer, has unveiled plans to invest $195-million in a new manufacturing plant in...
With growth rates exceeding that in the developed world – at an average of between 4% and 5% between 2002 and 2014 – African countries provide investors with ample reason to tap into booming consumer demand says Manufacturing Circle executive director Coenraad...
The South African Chamber of Commerce and Industry’s (Sacci’s) Business Confidence Index (BCI) decreased by 3.7 index points month-on-month to 89.1 in March.
 
 
 
 
 
 
 
 
 
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 $96 Close
Subscribe Now for $96