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Transnet Freight Rail 1 064 locomotives acquisition programme, South Africa

24th August 2018

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

     

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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).

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 Class 44 diesel locomotives, CNR Rolling Stock South Africa (CNR RSSA) 232 Class 45 diesel locomotives, CSR Zhuzhou Electric Locomotive 359 Class 22E electric locomotives and BT South Africa (BTSA) 240 Class 23 E 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 (TE) 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.

Potential Job Creation
Since the award of the contract, Bombardier, in partnership with its local supply chain, has created about just over 500 jobs, with more than 300 people working directly for Bombardier South Africa. Of these, 140 are directly involved in production of the locomotives. This will ramp up to 167 during peak production.

Bombardier is working with 220 local suppliers, of which 23 are black-owned small, medium-sized and microenterprises, and 12 are small development enterprises.

Value
As at March 31, 2018, the cumulative expenditure incurred on the 1 064 locomotive contract amounted to R30.1-billion, with R7.3-billion spent in the financial year to March.


Duration
Not stated.

Latest Developments
In the year to March 31, 2018, TFR accepted 402 locomotives from the 1 064 locomotives project.

To date 203 of the 233 Class 44 diesel locomotives, 21 of the 232 Class 45 diesel locomotives, 168 of the 359 Class 22E electric locomotives and ten of the 240 Class 23 E electric locomotives have been accepted into TFR’s operations.

Sixteen more locomotives have been delivered and are undergoing acceptance testing.

Meanwhile, Transnet’s team of nonexecutive directors is leading a review of the company’s procurement process pertaining to the 1 064 locomotive contracts.

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
TFR media relations manager Thembekile Klass, tel +27 11 544 9678 or email TFRmedia@transnet.net.
 
 

 

Edited by Creamer Media Reporter

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