Name of the Project
Transnet Freight Rail (TFR) 1 064 locomotives acquisition programme.

Location
South Africa.

Client
TFR.

Project Description
The project involves the acquisition of 1 064 locomotives – 599 electric and 465 diesel – for TFR's General Freight Business (GFB) unit by 2018.

Contracts for the project have been awarded to consortiums led by four major international locomotive manufacturers – General Electric (GE), China North Rail (CNR), China South Rail (CSR) Zhuzhou Electric Locomotive and Bombardier Transportation (BT).

GE South Africa Technologies will supply 233 diesel locomotives; CNR Rolling Stock South Africa (CNR RSSA) 232 diesel locomotives; CSR Zhuzhou Electric Locomotive 359 electric locomotives; and BT South Africa (BTSA) 240 electric locomotives.

The contracts have stringent local-content, skills development and training commitments as dictated by the supplier development programme.

All but 70 locomotives will be built at Transnet Engineering plants in Pretoria and Durban. The suppliers have to date complied with and exceeded the minimum local-content criteria for rolling stock of 60% for electric locomotives and 55% for diesel locomotives.

Jobs to be Created
Not stated.

Value
Transnet announced in March 2015 that it had secured two funding agreements, collectively valued at R13-billion, with the US Export-Import (Ex-Im) Bank and Canadian export credit agency Export Development Canada, supporting TFR’s acquisition of diesel and electric locomotives from GE and BT.

The US Ex-Im Bank agreement entails a 14-year, R6-billion guarantee being extended to Transnet for the acquisition of diesel locomotives from GE. The guarantee assisted TFR in raising funds from South African financial institutions – R2.25-billion from Absa/Barclays, R2.25-billion from Standard Bank and R1.5-billion from Old Mutual.

Export Development Canada provided TFR with a 13-year, R5.24-billion loan facility, which, together with a R1.75-billion loan from South Africa’s Investec Bank, will be used to acquire 240 electric locomotives from BT.

These locomotives will be assembled at TE’s Durban facility.

Duration
One-hundred-and-forty-eight locomotives will be delivered in 2016, 492 in 2017 and 424 in 2018.

Latest Developments
In Transnet’s results for the six months ended September 2016, released in November, the company reported progress regarding the delivery of the diesel and electric locomotives for the GFB.

Of the 359 Class 22E electric locomotives ordered, 59 locomotives were reported to have been accepted into operations in the six-month period.

Of the 233 Class 44 diesel locomotives, 59 locomotives had been accepted into operations, with an additional 18 locomotives undergoing acceptance testing.

Of the 232 Class 45 diesel locomotives, two locomotives had been delivered and were undergoing acceptance testing.

Of the 240 Class 23E electric locomotives, nine car bodies had been completed.

Key Contracts and Suppliers
GE South Africa Technologies (233 diesel locomotives); CNR RSSA (232 diesel locomotives); CSR Zhuzhou Electric Locomotive (359 electric locomotives); BTSA (240 electric locomotives); Booyco (air conditioning for locomotive main cab); Duys (manufacture of the fuel tanks); Wabtec (radiators) and TE (manufacturing and assembling the locomotives’ platform, traction motors, bogies and alternators).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Transnet, tel +27 11 308 3000, fax +27 11 308 2638 or email enquiries@transnet.net.
Wabtec South Africa, tel +27 11 974 3813.
TE, tel +27 86 172 7427.