Name of the Project
Traxtion Group rail investment.
Location
South Africa.
Project Owner/s
Traxtion Group.
Project Description
Traxtion Group has announced its intention to embark on a significant investment programme in South Africa’s rail sector.
This follows the Economic Recovery Plan presented by President Cyril Ramaphosa at the joint sitting of Parliament in October, where he announced that the State would grant third-party access to the core rail network within the next 12 months.
Under this new policy, private freight rail operators will be allowed to operate on the State-owned rail infrastructure, alongside and complementary to State-owned transport and logistics company Transnet.
Traxtion’s initial investment includes a locomotive and wagon build programme, which will depend on the conclusion of the appropriate access rights with Transnet.
Traxtion also plans to invest in locomotives and wagons over the next five years as part of a carefully scaled rolling stock procurement programme.
The rolling stock investment programme will result in Traxtion’s partnering with a blue-chip original-equipment manufacturer supplier for locomotives to be assembled in the local market. For the wagons, Traxtion will partner with domestic manufacturers.
Potential Job Creation
Not stated.
Capital Expenditure
The wagon build programme will involve an investment of R1.5-billion.
Traxtion also plans to invest a further R14-billion to R17-billion in locomotives and wagons over the next five years.
The initial investment has the support of Traxtion’s shareholders, including Harith General Partners, the leading Pan-African fund manager for infrastructure development across the continent, and Principle Capital, a London-based investment company.
Planned Start/End Date
Not stated.
Latest Developments
None stated.
Key Contracts, Suppliers and Consultants
None stated.
Contact Details for Project Information
Traxtion Group, tel +27 41 581 4400 or email info@traxtion.africa.