From Creamer Media in Johannesburg, this is the Real Economy Report.

Sashnee Moodley:
The Passenger Rail Agency of South Africa, along with the Gibela Rail Transportation Consortium, began open line testing on the first test train imported from Brazil last month. Anine Kilian tells us more.

Anine Kilian:
Testing took place between Wolmerton and De-Wildt in Pretoria and would be completed by the end of September in anticipation of commercial operation in October.

PRASA spokesperson Victor Dlamini noted that the acquisition of the new X’Trapolis Mega commuter trains was part of PRASA’s Modernisation Programme, which included the upgrading of key rail infrastructure over the next 20 years to enable the roll-out of new rolling stock throughout key operational corridors.
PRASA spokesperson Victor Dlamini:
 

Anine Kilian:
He added that the Test Train 2 was also currently being tested.

PRASA spokesperson Victor Dlamini:
 

Anine Kilian:
In 2014, PRASA and Gibela reached financial close for the manufacture of 600 new trains at a cost of R59-billion. Gibela would manufacture 580 trains in South Africa and 20 trains in Brazil, with the contract subject to a 65% localisation target.

PRASA spokesperson Victor Dlamini:

Sashnee Moodley:
Other news making headlines this week:

Metals sector forfeiting billions as imports capture 55% domestic market share
‘Steel committee’ to be set up to monitor AMSA’s ‘fair pricing’ pledge
And, growing CSI projects in KwaZulu-Natal

The share held by South African metals and engineering producers of the domestic market fell to just 45% last year as imports continued to rise, representing a material decline from a peak of over 65% in 2002.
Seifsa chief economist Henk Langenhoven

Government would, within weeks, finalise a “fair pricing” agreement with steel producer ArcelorMittal South Africa and establish a “steel committee” to monitor implementation of the formula.
DTI deputy director-general for industrial policy Garth Strachan

More business and projects in KwaZulu-Natal have subsequently led to increased involvement in CSI projects for international engineering and project management consultancy Royal HaskoningDHV.
Royal HaskoningDHV South Africa MD Salani Sithole

That’s Creamer Media’s Real Economy Report. Join us again next week for more news and insight into South Africa’s real economy.