Jul 16, 2012
Transnet issues tenders for the acquisition of 1 064 locomotivesBack
Engineering|Johannesburg|Parktown|Port|Pretoria|CoAL|Components|Design|Diesel|General Electric|Locomotives|Pipelines|Ports|Transnet|Transnet Port Terminals|Equipment|Logistics|State-owned Freight Logistics|Brian Molefe|Iron Ore|Iron-ore|Rail|Richard Vallihu|TRE CE|Locomotive|Locomotives|Pipelines|Diesel
© Reuse this
In what is arguably the group’s largest-ever single tender, Transnet has issued a request for proposals (RFP) for the supply of 599 new dual-voltage electric locomotives. In addition, tenders have been invited for 465 new diesel locomotives.
Both RFP’s will close at 10:00 on October 2, 2012, and both will attract a R40 000 nonrefundable tender charge. Formal compulsory site meetings for both tenders will be hosted at Transnet Freight Rail’s (TFR’s) head office in Parktown, Johannesburg, on August 16 and the RFP documentation will be available until August 10.
The large-scale tenders follow hot on the heels of a programme to procure 95 new electric locomotives, which will be delivered by the end of March 2014 – 45 during the group’s current financial year and a further 50 during the 2014 financial year.
A total of nine bids were received for that far smaller tender, which closed on April 17 and CE Brian Molefe said recently that the adjudication process was well advanced.
However, a number of locomotive suppliers have argued that the scale of the acquisition programmes should be increased to meet Transnet’s objective of securing both value for money and high levels of local content.
The group is currently achieving localisation levels of around 52%, an average that has been lifted materially by the 67% being achieved on a 'follow-on’ agreement with General Electric for 43 diesel-electric locomotives. These Class 43-000 locomotives are being assembled by Transnet Rail Engineering (TRE) at its workshops in Koedoespoort, north of Pretoria.
However, Molefe has reported that Transnet will insist on even higher levels of local content under its ‘fleet’ procurement model for the 1 000-plus new locomotives and that it also aims to use the acquisitions to build TRE into an original-equipment manufacturer.
TRE CE Richard Vallihu has reported that the unit is already working on an in-house locomotive design, which is being tailored to suit conditions prevailing in a number of African markets.
The locomotive-acquisition programmes have also been coupled to a plan to introduce 19 400 new wagons between 2013 and 2019. In addition, TFR plans to add 112 Class 19E locomotives to the export coal line and a further 23 Class 15E and three diesel locomotives to the export iron-ore channel.
The locomotive and wagon investments form the largest components of the group’s R300-billion market demand strategy, which will seek to upgrade and expand Transnet’s rail, ports and pipelines businesses over a seven-year horizon.
A total of R201-billion will be invested into TRE, followed by the Transnet National Ports Authority (R47-billion), Transnet Port Terminals (R33-billion), Transnet Pipelines (R11-billlion) and TRE (R4-billion).
The rail investments are designed to increase the GFB unit’s yearly volumes capacity from 79.7-million tons to 170.2-million tons by 2019, raise exports coal capacity to 97.5-million tons over the same period, increase the iron-ore export channel to 82.5-million tons and develop a new 16-million-ton-a-year manganese export channel.
During the year to March 31, 2012, GFB hauled 81-million tons, which was 9.9% higher than the 73.7-million tons achieved in 2011. Coal export volume rose 8.8% to 67.7-million tons, iron-ore volumes rose 13.2% to 52.3-million tons and the number of containers moved by rail increased 21.5% to 762 700 twenty-foot equivalent units.
Edited by: Creamer Media Reporter© Reuse this Comment Guidelines (150 word limit)
Other Infrastructure News
Recent Research Reports
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 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.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
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.
This Week's Magazine
The international Square Kilometre Array (SKA) radio telescope – which is to be jointly hosted by South Africa and Australia with, later, outstations in other countries – may not yet exist, but international scientific working groups are already deciding what...
A free Web-based solar power plant capacity-planning tool offers project planners and developers, as well as governments, a means to assess the solar energy potential of thin-film solar PV power over an area of land. The tool was developed by thin-film solar...
As yet, no specific methodology, timeline or costs have been finalised to remedy the water ingress, excessive to contractual specifications, into the Gautrain tunnel between emergency shaft two (E2) and Park Station, says Bombela Concession Company technical and...
The “seriously disruptive” electricity outages in South Africa have cost packaging group Astrapak more than R2-million in “irrecoverable downtime costs”, the company said on Monday, adding that the power cuts were negating some of the benefit of energy saving...
Bakkies and more affordable cars dominated South Africa’s new vehicle market in 2014. Unaudited data from the Department of Trade and Industry (DTI) shows that South Africa’s most popular vehicle in 2014 was the Toyota Hilux, selling 37 562 units.