http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.20Change: 0.11
R/$ = 11.08Change: 0.00
Au 1216.40 $/ozChange: -0.63
Pt 1339.00 $/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 Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jan 10, 2012

Transnet boosts locomotive manufacturing capacity, confirms new order for 43 more GE units

Back
Transnet CEO Brian Molefe, Transnet Rail Engineering CE Richard Vallihu and GE Africa president and CEO Jay Ireland on the significance of the latest acquisition to South Africa's locomotive manufacturing capacity. Camera Work: Nicholas Boyd. Editing: Darlene Creamer.
Engineering|Erie|Nelspruit|Pretoria|Africa|CoAL|Diesel|Eskom|GE Transportation Systems|General Electric|Locomotives|Systems|Transnet|Witbank|Africa|Australia|Mexico|South Africa|United States|Koedoespoort Facility|Equipment|Logistics|Manufacturing|Manufacturing Hub|Offered Maintenance Services|Potential Original Equipment Supplier|Product|Services|State-owned Freight Logistics|Systems|Transport|Phalaborwa-Richards Bay|Brian Molefe|Infrastructure|Iron Ore|Mafika Mkwanazi|Power|Rail|Richard Vallihu|TRE CE|Locomotive|Locomotives|Pennsylvania|Diesel
Engineering||Africa|CoAL|Diesel|Eskom|General Electric|Locomotives|Systems|Transnet||Africa|||Equipment|Logistics|Manufacturing|Services|Systems|Transport||Infrastructure|Iron Ore|Power|Rail||Locomotive|Locomotives||
engineering|erie|nelspruit|pretoria|africa-company|coal|diesel-company|eskom|ge-transportation-systems|general-electric|locomotives|systems-company|transnet|witbank|africa|australia-country|mexico|south-africa|united-states|koedoespoort-facility|equipment|logistics|manufacturing|manufacturing-hub|offered-maintenance-services|potential-original-equipment-supplier|product|services|state-owned-freight-logistics|systems|transport-industry-term|phalaborwa-richards-bay|brian-molefe|infrastructure|iron-ore|mafika-mkwanazi|power|rail|richard-vallihu|tre-ce|locomotive|locomotives-product|pennsylvania|diesel
© Reuse this



State-owned freight logistics group Transnet has concluded a 'follow-on’ agreement with General Electric (GE), of the US, for a further 43 diesel-electric locomotives, over-and-above the 100 already being purchased under a deal concluded in 2009. No contract value has been disclosed, owing to a confidentiality agreement between the two companies.

The 143 locomotives will be introduced to the Phalaborwa-Richards Bay corridor (53), the Sishen-Saldanha iron-ore corridor (30), the Witbank-Nelspruit-Komatipoort line (32) and to transport coal to Eskom power stations (28).

The 43 Class 43-000 locomotives are to be built by Transnet Rail Engineering (TRE) at its workshops in Koedoespoort, north of Pretoria, and will include higher local content levels than those achieved with the first batch.

Transnet chairperson Mafika Mkwanazi indicated at a function at the Koedoespoort facility that the deal further consolidated TRE as a potential original equipment supplier of locomotives for third parties, including other African and international railways businesses. A non-group sales target of R1-billion has been set for TRE.

TRE already supplies wagons and offers maintenance services to non-group customer, but is now looking to become a significant manufacturing hub for locomotives.

LOCOMOTIVE HUB

Besides its GE relationship, which has reportedly already generated enquiries from the rest of Africa, as well as from Queensland, Australia, TRE CE Richard Vallihu tells Engineering News Online that the company is also working on a TRE locomotive design, which is being tailored to suite conditions prevailing in a number of African markets.

About R70-million has been invested to create the facilities needed to produce "world-class" locomotives and Vallihu said efforts are also being made to increase TRE’s internal research and product development capacity.

This vision is receiving strong support from Public Enterprises Minister Malusi Gigaba, who is keen for State-owned companies, such as Transnet, to use their infrastructure budgets to support the development of local industry, which could eventually also supply markets outside of South Africa.

ENLARGED PIPELINE

He also reiterated his desire for Transnet to enlarge its capital programmes beyond the R110-billion pipeline already approved for the coming five years. He says it is premature to offer details, but stresses that the increase will “not simply be handsome, but beautiful”.

An upscaled pipeline, Gigaba indicates, should create even more opportunity for industrialisation in line with the recently concluded ‘Local Procurement Accord’, under which government, business and labour set an aspirational goal of procuring 75% of their needs from local industry.

CEO Brian Molefe indicated that more than 65% of the latest GE contract value could be considered to be local content as framed by government’s Competitive Supplier Development Programme, which covers aspects such as localisation of parts and production, skills transfer and development, technology transfer, industrialisation, social investment and job creation. In total 337 new jobs would be created as a result of the contract.

The level of localisation in the 43 locomotives has also been increased to 29.8%, as compared with 20.3% for the first 100 units, with the first ten having been manufactured and assembled at GE's facilities in Erie, Pennsylvania, in the US, and delivered between January and April last year.

The balance of the Class 43-000 locomotives will be assembled by TRE at the Koedoespoort facilities, at a rate of one every three days, with the first 28 locally produced units having already been delivered to Transnet Freight Rail (TFR).

TRE has geared up for the assembly by sending 60 employees to GE facilities in the US, Mexico and Australia, while GE sent technical services teams to South Africa to oversee the establishment of the facilities required to produce the units.

GE Africa president and CEO Jay Ireland says the relationship has enabled the US group to create a manufacturing “foothold” in Africa, which should improve its ability to compete for rail opportunities across the continent. He also indicates that GE may seek to replicate the localisation model achieved with TRE in other African countries.

VOLUMES TARGET

The diesel-electric units are based on GE's 3 300-hp, fuel-efficient C320-ACi technology platform, designed by GE Transportation Systems and Ireland says the locomotives will improve TFR’s hauling capacity, while reducing emissions.

TFR COO Mlamuli Buthelezi reports that the locomotives are already helping to bolster the performance, with two locomotives being used on 70-wagon trains. Hitherto, TFR has required five locomotives to operate 50-wagon trains.

Therefore, Buthelezi is confident that TFR will meet its 200-million ton target for 2011/12, which would be a 9% improvement on the previous year. In fact, he indicates the business is on track to move up to 72-million tons of coal and 54-million tons of iron-ore by March 31.
 

Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Construction News
After fully acquiring Nungu Trading 88 through a sale of shares and claims agreement, earlier this month, property group Texton Property Fund is now the sole owner of the 3 865 m2, AAA-grade office property Babcock House, in Bedfordview. Tenanted by Babcock Ntuthuko...
Marking one of the biggest private sector-led commercial property developments in Johannesburg’s inner city, property groups Attacq and Atterbury Property Holdings are a week away from the soft launch of the R1.3-billion Newtown Junction mixed-use development, in the...
Zukie Siyotula, Wandile Mseleku and Govert Rietema.
African investment management firm Thebe Investment Corporation has acquired a 15% stake in Burgan Cape Terminals, which was, last year, awarded a 20-year contract by Transnet National Ports Authority (TNPA) to develop and manage fuel storage and distribution...
More
 
 
Latest News
President Jacob Zuma would next month officially launch the Dube Tradeport, in Durban, as an industrial development zone (IDZ), the Department of Trade and Industry (DTI) announced on Friday. At the launch event, which was scheduled to take place on October 7, the...
JSE-listed York Timber Holdings on Friday said it expected its operating profit for the year ended June 30 to be between 25% and 30% lower than that of the prior year. As a result of the lower operating profit, combined with a 1% increase in the company’s biological...
Engineering solutions provider ELB Group has reported an 18% increase in turnover for the year, boosting overall income, from R1.9-billion in 2013, to R2.3-billion for the 12 months ended June 30. Describing this as “a satisfactory result, given the current difficult...
More
 
 
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 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 road...
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.
 
 
 
 
 
This Week's Magazine
MANUFACTURING CAPABILITY Reliable Transformers designs and manufactures dry-type and oil-filled power and distribution transformers up to 3.5 MVA
While Ekurhuleni-based transformer manufacturer Reliable Transformers currently designs, manufactures and tests its products according to the SANS 780 specifications for distribution transformers and other applicable transformer specifications, it is working towards...
GHAREEB SAAD Kaspersky Lab products contain strong heuristics engines that monitor suspicious file execution to detect attacks
Global endpoint security solutions company Kaspersky Lab has introduced new measures to prevent cyber criminals from accessing sensitive data, alongside its malware-signature and heuristic device analysis detection methods. Threats to mobile devices have increased...
MICHAEL FLETCHER Real-time information available to government when citizens use publicly funded Wi-Fi networks will enable it to communicate with citizens and provide services
To ensure uptake and a positive impact, Wireless Fidelity (Wi-Fi) networks in cities must be provided at schools, community centres and commercial centres to enable citizens and government to access information that will improve access to and delivery of services....
Eco-estate Monaghan Farm, located near Lanseria airport, north-west of Johannesburg, has taken a new approach to modern living and sustainability with its 517 ha development, dedicated to farm living.
Forklift and lift-truck distributor Goscor Lift Hi-Reach launched the Genie SX-180, the tallest self-propelled super boom in Africa, in Johannesburg last month. “As the official distributor of the well-known Genie range of equipment in Southern Africa, we are pleased...
 
 
 
 
 
 
 
 
 
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