Oct 22, 2012
Transnet awards loco tender to Chinese-led groupBack
Pretoria|Matsetse|Public Enterprises|Transnet|China|South Africa|Capital Park Depot|Locomotive Original-equipment Manufacturer|Manufacturing|State-owned Logistics|Malusi Gigaba|DC|DC Drive Technology
© Reuse this
Speaking at the official signing at Transnet Freight Rail’s (TRF’s) Capital Park depot, in Pretoria, on Monday, Public Enterprises Minister Malusi Gigaba said the R2.6-billion contract could lay a platform for South Africa to become a significant locomotive original-equipment manufacturer (OEM) and further develop trade and investment relationships with foreign countries.
The agreement marked the first time Transnet would procure locomotives from a Chinese OEM.
Transnet’s minimum local-content level of 60% stipulates that the majority of the manufacturing and assembly of the locomotives would take place in South Africa. Engines and some components would be imported from China.
The first 10 locomotives would be assembled in CSR’s factories in China. The remaining 85 would be made in South Africa, with minimum supplier development targets of 60.5% of the total value of contract.
This was in line with Transnet’s commitment to the Department of Public Enterprises-led Competitive Supplier Development Programme, which aimed to localise the manufacturing of imported equipment.
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.
Zhuzhou Electric Locomotive, in a 70:30 joint venture with Matsetse Basadi, would deliver the first of the locomotives to TFR’s general freight business by December 2013.
The final batch would be delivered by September 2014.
The newly ordered locomotives, which would be configured to operate using both 3 kV DC and 25 kV AC power supply, are more energy efficient and use less power on TFR’s DC drive technology. They are also capable of regenerating back to the power grid and have longer maintenance cycles of 90 to 120 days, compared with the current 36 to 60 days.
Transnet issued tenders – in line with its market demand strategy and R300-billion seven-year investment programme – to add 465 diesel locomotives and another 599 electric locomotives to its general freight business fleet by 2019.
Edited by: Mariaan Webb© Reuse this Comment Guidelines
Other Transport & Logistics News
Updated 41 minutes ago The roll-out of e-tolling on Gauteng’s highways has resulted in a “lot of work” for fleet administrators, says Imperial Fleet Management (IFM) CEO Nicholas De Canha. The need to make payments within seven days, every seven days – if not using a prepaid or...
Updated 32 minutes ago Employment in the formal nonagricutural sector increased by 16 000 persons, or 0.2%, quarter-on-quarter during the three months ended September 30, to an estimated 8.45-million employees, Statistics South Africa (Stats SA) has found. On a year-on-year basis,...
Updated 51 minutes ago The roll-out of e-tolling on Gauteng’s highways has resulted in a “lot of work” for fleet administrators, says Imperial Fleet Management (IFM) CEO Nicholas De Canha. The need to make payments within seven days, every seven days – if not using a prepaid or...
Recent Research Reports
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
Road and Rail 2013: A review of South Africa's road and rail infrastructure (PDF Report)
Creamer Media’s Road and Rail 2013 Report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move...
Liquid Fuels 2013 (PDF Report)
Creamer Media’s 2013 Liquid Fuels report examines South Africa’s liquid fuels market, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing,...
Projects in Progress - Second Edition (PDF Report)
Creamer Media’s second Projects in Progress supplement considers some of the major project developments under way, including high-profile energy and transport projects, as well as a few of the lower-profile public and private developments. What remains apparent is...
Water 2013: A review of South Africa’s water sector (PDF Report)
Creamer Media’s Water 2013 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.
Canadian Mining Roundup for June 2013 (PDF Report)
The June 2013 roundup includes details of the development of TSX-V-listed Aldridge Minerals’ flagship Yenipazar polymetallic project, in Turkey; the Canadian Nuclear Safety Commission’s renewal of Cameco’s uranium mining licence pertaining to the Cigar Lake...
This Week's Magazine
Mitsubishi Motors South Africa (MMSA) has introduced a 4x2 derivative of its Pajero Sport sports-utility vehicle (SUV), which will give it access to a substantial slice of the full-size SUV market, where it will compete with the likes of the Ford Everest, Chevrolet...
South African Energy Minister Ben Martins has affirmed that the government wants the country to be globally competitive in the nuclear sector. "Our responsibility has always been ... to ensure that, in nuclear energy, South Africa can compete with the rest of the...
Mercedes-Benz South Africa (MBSA) president and CEO Dr Martin Zimmermann describes the new S-Class as “a special place to be”, with the car creating a sense of “wellness” once you are seated inside the German brand’s flagship model. It is difficult to argue...
Water scarcity and water-quality issues are broadly recognised and understood in most political, business and civil organisations in South Africa, but solving water issues will require wide and continuous action in catchments and municipalities by organisations and...
Work is well under way on the R212-million Imvutshane dam, 30 km north-west of Stanger, in KwaZulu-Natal, which is a key link in supplying people in rural Maphumulo with a reliable source of safe drinking water.