From Creamer Media in Johannesburg, this is the Real Economy Report.
The awarding of a locomotive tender by State-owned logistics group Transnet to a consortium led by Chinese manufacturer China South Rail Zhuzhou Electric Locomotive could enable South Africa to localise manufacturing and establish its own original-equipment manufacturing hub. Natasha Odendaal has the story.
State-owned logistics group Transnet has awarded a R2.6-billlion contract – for the supply of 95 electric locomotives – to a Chinese consortium – a contract which the Department of Public Enterprises hoped would lay a platform for South Africa to become a significant locomotive original-equipment manufacturer - and further develop trade and investment relationships with foreign countries.
The contract would enable skills development and knowledge transfer within the domestic manufacturing sector, as well as create jobs, capability and capacity, and enable South Africa to establish itself as an OEM hub, exporting regional and internationally.
Public Enterprises Minister Malusi Gigaba tells us more.
Public Enterprises Minister Malusi Gigaba
Shannon de Ryhove:
Other news making headlines this week: South Africa moves to procure 7 761 MW of baseload IPP power by 2025; and capex culling is a ‘last resort’ as Transnet reviews the impact of a soft economy on its R300-billion plan; and
Energy Minister Dipuo Peters says the Department of Energy has received “concurrence” from the National Energy Regulator of South Africa for a Ministerial determination opening the way for the procurement of 7 761 MW of baseload capacity from independent power producers between now and 2025.
Energy Minister Dipuo Peters
State-owned freight logistics group Transnet is reviewing ways to de-risk its R300-billion market demand strategy in light of the weaker-than-expected economic outlook, which could negatively affect commodity and container volumes.
Transnet CEO Brian Molefe
That’s Creamer Media’s Real Economy Report. Join us again next week for more news and insight into South Africa’s real economy.