R400m Dunnottar train plant contract awarded to black-owned firms

17th June 2016 By: Irma Venter - Creamer Media Senior Deputy Editor

Gibela has awarded the Trencon Black Jills joint venture (JV) the R400-million contract to build the main site buildings at its Dunnottar train manufacturing plant, on the East Rand.

The plant will be used to produce the 580 trains Gibela is to supply to the Passenger Rail Agency of South Africa in a R51-billion deal signed in 2013. Another 20 trains will be imported from Brazil. Six of these trains are already in South Africa.

Gibela CEO Marc Granger describes the 21-year-old Trencon Construction as the largest black-owned construction company in South Africa. The eight-year-old Black Jills Engineering is a black-women-owned firm.

Trencon will have a 70% share in the JV and Black Jills 30%.

Construction of the new train manufacturing facility has already begun. Site mobilisation started early in May to begin work on the five manufacturing buildings (including a training centre), a central complex of two buildings (including offices and a canteen) and utility buildings used for operational purposes (such as a gatehouse).

The training centre, scheduled for an October finish, will be the first building to be completed. This will allow for staggered training in readiness for when local train manufacturing operations begin.

The first manufacturing building is to be completed in March next year. This allows for preliminary work on train production to get under way during the second quarter of the year.

The aim is for all the buildings to be completed (and fully equipped) by November next year, when full-scale assembly of the first South African-made trains will begin.

This starting date means there will be a gap between the delivery of the last Brazilian train and the delivery of the first South African produced train, says Granger. However, he believes it is more important to deliver on the goals of empowerment, local content and the revival of the domestic rail industry than to rush local manufacture.

The gross building area of the Dunnottar factory covers 53 000 m2 of the site’s total area of 270 000 m2.

“The award of the contract to the Trencon Black Jills JV reflects Gibela’s commitment to transformation in South Africa,” says Granger.

“The Trencon Black Jills JV was selected from seven entities that tendered for the main site buildings package. All tenders were adjudicated on the basis of empowerment credentials, price and, most importantly, contribution to economic development – a critical component of the overall rolling-stock project.”

The JV was specifically formed to support Gibela’s economic development plans, notes Trencon Construction special projects director Yavani Singh-Ninan.

“Black Jills will not only partner on this project, but will be mentored and developed through various initiatives.”

Black Jills MD Lebo Leshabane views the contract as a “great opportunity” for Trencon and Black Jills.

The partnership between Trencon and Black Jills Engineers is not unique to the Gibela project. The companies have also worked together on the construction of the Lillian Ngoyi Women’s Living Heritage Monument, in Pretoria.