Creamer Media Login

Chinese rail group looks to set up SA manufacturing plants

4th December 2014

Creamer Media Editor

Font size: - +

Freight logistics utility Transnet signed a memorandum of understanding (MoU) with locomotives manufacturer CSR Zhuzhou Electric Locomotive (CSR) on Thursday, which could open the way for manufacturing investments by the Chinese group in South Africa.

CSR, which produces electric locomotives, is one of the four manufacturers selected by Transnet as part of a R50-billion contract for the delivery of 1 064 electric and diesel locomotives for the group’s general freight business. The other three suppliers are the CNR Corporation, also of China, Germany-based Bombardier Transportation and General Electric, of the US.

CSR was awarded a contract to supply 359 electric locomotives at a contract value of R14.6-billion, excluding hedging and escalation costs. Prior to the award, CSR was also contracted to supply 95 Class 20E locomotives to Transnet, with an estimated price tag of R2.7-billion.

The MoU was signed in Beijing by Transnet CEO Brian Molefe and CSR president Zhou Qinghe and witnessed by Chinese President Xi Jinping and President Jacob Zuma, who is on a State visit to the country.

The areas of possible cooperation outlined in the MoU included:

The setting up of manufacturing plants in South Africa;
The establishment of a research and development facility;
Joint initiation and development of business opportunities in Africa;
Skills transfer, including establishment of a training centre in South Africa; and
Setting up a refurbishment and manufacturing plant.

Initially, Transnet would make available its manufacturing facilities in South Africa, while the Chinese firm would provide the technology. CSR would enter into a joint venture with Transnet and the new entity will be based in South Africa.

Edited by Creamer Media Reporter

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

Click Here

MAGAZINE & ONLINE

➕

RESEARCH CHANNEL AFRICA

➕

CORPORATE PACKAGES

CLICK FOR A QUOTATION

➕