http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.14Change: 0.09
R/$ = 10.51Change: 0.07
Au 1305.10 $/ozChange: -2.25
Pt 1483.20 $/ozChange: -0.30
 
 
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 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|Railway Products|Supply Chains|Billy Ainsworth|Infrastructure|Motors|Rail|Locomotive|Locomotives|Motors|Minas Gerais|Diesel
Engineering||Africa|Components|Diesel|Locomotives|Motors||Africa||Motors||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|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
 
 
 
 
 
 
 
 
Other Manufacturing News
A Metrorail coach in need of refurbishment
Updated 4 hours ago The Passenger Rail Agency of South Africa (PRASA) will continue refurbishing its existing Metrorail fleet for another 15 years, despite the R51-billion acquisition of 600 new trains of six cars each, signed last year. Not all the new coaches will come on stream at...
Wayne Samson
Updated 5 hours ago A “perfect storm” of weak demand, a depressed consumer market, the cancellation of the residential mass roll-out (RMR) programme and slower-than-expected OpenView high-definition (OVHD) sales had weighed on the financial performance of JSE-listed Ellies during...
South Africa's biggest union took the latest pay offer to its members for approval on Wednesday in a fresh effort to end a three-week strike that has halted output at several car factories. More than 200 000 metal and engineering workers led by the National Union of...
More
 
 
Latest News
Updated 2 hours 33 minutes ago President Jacob Zuma announced the composition on Wednesday of the ‘Energy Security Cabinet Sub-Committee’, which he said would oversee the development of South Africa’s future energy mix. Delivering his Budget Vote in the National Assembly, Zuma said the...
Cesa CEO Lefadi Makibinyane
Updated 2 hours 34 minutes ago Consulting Engineers South Africa (Cesa) on Wednesday stated that it welcomed government’s move to lead municipalities back to basics and to put in place institutional mechanisms to enable them to deliver core municipal services, as announced by Cooperative...
Updated 2 hours 55 minutes ago JSE-listed construction firm Group Five on Wednesday announced that it expected its fully diluted headline earnings per share (HEPS) for the year ended June 30 to be between 20% and 30% higher, at 382c to 414c, than the fully-diluted HEPS of 318c achieved during the...
More
 
 
Recent Research Reports
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.
Real Economy Insight: Steel 2014 (PDF Report)
This four-page brief covers key developments in the steel industry over the past 12 months. It provides an overview of the global and South African steel and stainless steel markets, South Africa’s major steel producers and events that have shaped these markets.
 
 
 
 
 
This Week's Magazine
Local aerospace company Denel Aerostructures (DAe), part of the State-owned Denel Group, has won a fourth contract to manufacture parts for the Airbus A400M military air transport and air-to-air refuelling aircraft. The new contract, which was won in an international...
Bob Skinstad
Although CEO Mark McChlery and chief marketing officer Bob Skinstad likened themselves to children in a playground when taking on the task of “reengineering and repositioning” the Seartec brand, the “young, dynamic and enthusiastic guys” were like proud...
An increasing number of buyers, in both the new and used car markets, are opting for finance structures that lower their monthly repayments, says asset financing company WesBank. These include the use of large balloon payments (also known as residuals), as well as...
Tertiary education institutions can use search engine giant Google’s Chromebook to provide secure mobile end-point devices for students on which they can share documents, work collaboratively on documents and access education materials and applications being used...
Local ceiling and partition company Abbeycon has beaten global competition at the Saint-Gobain Gypsum International Trophy competition, which was held last month in Berlin, Germany.
 
 
 
 
 
 
 
 
 
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