Jul 30, 2012
Transnet outlines localisation thresholds for big locomotive tendersBack
Engineering|Johannesburg|Parktown|Africa|CoAL|Diesel|Locomotives|Pipelines|Ports|Road|Rolling Stock|rolling-stock|SECURITY|Transnet|Africa|South Africa|Equipment|Freight Logistics|Logistics|Manufacturing|Products|Mboniso Sigonyela|Rail|Locomotive|Locomotives|Operations|Pipelines|Diesel
© Reuse this
The State-owned company, which issued the two tenders in late July, has also confirmed with Engineering News Online that it aims to have both contracts in place by the end of its current financial year, which runs to March 31, 2013. The schedule is subject, however, to gaining board and Public Finance Management Act sanction.
The procurement process is designed to lower the average age of Transnet Freight Rail’s (TFR’s) locomotive fleet from 37 years to around 20 years and is coupled to a plan to introduce 19 400 new wagons between 2013 and 2019.
The total GFB acquisition of 1 064 locomotives is the single-biggest procurement ever undertaken by Transnet and it has been estimated that the acquisition could involve an investment of R35-billion.
Given its scale, government, Transnet’s sole shareholder, is insisting that it be accompanied by significant localisation and supplier development in line with South Africa’s Competitive Supplier Development Programme.
“The tenders are programmatic and are targeted at industrialising and localising the manufacturing of equipment, focusing on skills development, job creation and preservation and the localisation of suppliers,” spokesperson Mboniso Sigonyela explains.
He says the large-scale tenders are informed by a desire to attract suppliers able to commit to delivering high levels of localisation, while creating of jobs, transferring of technical skills and intellectual property.
Transnet will also seek to increase the capability and capacity of the South African rolling stock industry, including Transnet Rail Engineering, and integrating such suppliers into the global supply chains of key original equipment manufacturers.
The group is optimistic that the security of demand offered by the tenders will allow suppliers to commit to investing in South African operations and enable suppliers to commit to transferring skills to the domestic manufacturing sector.
The actual units locomotives will be deployed on corridors carrying commodities such as manganese, domestic coal, chrome ore, magnetite, rock phosphate and containers, as well as agricultural products, such as wheat, grain and deciduous fruit.
Sigonyela says some of the locomotives will also be used to bolster over-border capacity to promote South Africa’s “gateway status”.
The investment is in line with the group’s larger R300-billion, seven-year market demand strategy, which aims to modernise and expand South Africa’s rail, ports and pipelines capacity.
For GFB, which currently has an estimated market share of 15%, the locomotive procurement programme has been designed to support the shift of rail-friendly products from road to rail and raise its market share to around 30%.
“The acquisitions are . . . in line with TFR's strategy to be one of the top five global railways by 2020,” Sigonyela concludes.
Both requests for proposal (RFP) will close at 10:00 on October 2, and both will attract a R40 000 nonrefundable tender charge. Formal compulsory site meetings for both tenders will be hosted at TFR’s head office in Parktown, Johannesburg, on August 16, and the RFP documentation will be available until August 10.
Edited by: Creamer Media Reporter© Reuse this Comment Guidelines (150 word limit)
Other Infrastructure News
The petrol price will increase by R1.62/ℓ next week, while diesel would increase by R1.24/ℓ, the Department of Energy (DoE) revealed on Friday. The DoE said the adjustment was based on local and international factors.
Recent Research Reports
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
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...
This Week's Magazine
Projected capital expenditure (capex) in the South African automotive assembly industry should reach a record R7.48-billion this year, says the National Association of Automobile Manufacturers of South Africa (Naamsa) in its 2014 fourth quarter business review. Capex...
After several years of navigating project-threatening red tape and currency fluctuations, the 4.4 MW Bronkhorstspruit biogas power plant, which will supply clean energy to a leading automotive manufacturer in Gauteng, is expected to enter production before June....
South African paper and pulp producer Sappi reported earlier this month that it would build a pilot plant for the production of low-cost Cellulose NanoFibrils, or CNF (nanocellulose) at the Brightlands Chemelot Campus in Sittard-Geleen in the Netherlands.
The long-term outlook for Nigeria is a country that has the potential to be very strong. So affirmed International Monetary Fund (IMF) Nigeria Mission Chief and Senior Resident Representative Dr Gene Leon on recently. "But we are starting from a point of huge...
Poor infrastructure planning and inadequate maintenance are becoming increasingly problematic for new developments and the associated infrastructure required to support such developments. In many urban and rural municipalities, the state of infrastructure has been...