The DCD group, a R3,5 billion global leader in heavy engineering solutions, has invested R240 million to recapitalise its rail operation and introduce advanced technology that will boost its global competitiveness.  Phase I of the programme, worth R100 million, was officially launched today by the Minister of Public Enterprises, Malusi Gigaba. 

The recapitalisation programme is a proactive measure to prepare for the uptick in the previously depressed rail industry. DCD Rolling Stock is a leading manufacturer and supplier of locomotives, wagons and bogies to railway, mining and industrial markets around the world.  The recapitalisation programme will be rolled out over a three- to five-year period. Phase 1 will focus on upgrading the 42 000 m2 rail manufacturing facility and plant. Full-scale production is expected to begin at the facility before the end of the year. DCD managing director Rob King explains how the initial investment is being applied: "R80 million has been spent to reclaim the manufacturing facility from sister company DCD Protected Mobility (manufactures armoured personnel vehicles), which has moved to a new purpose-built facility. An additional R10 million was spent on the installation of four robotic welding cells in October 2013 and the balance on repairs."

He says of the rationale behind the recapitalisation: “The rail industry is being revitalised by development all over Africa.  In South Africa government has made clear its intention to invest heavily in infrastructure over the next seven to 15 years, particularly in the energy and rail sectors. Given this, we are aiming to build a local manufacturing environment for long term sustainability." Looking further afield, under-developed countries with growing mining industries such as Mozambique, Zambia and Tanzania will soon demand port links for export purposes, serving as a catalyst for railway development in those regions.

General manager of DCD Rolling Stock, Petrus Mulaudzi, points out that the upgrade of the facility and new equipment will increase production volumes.  “Automation will allow for the welding of four fabricated bogie frames in the same time it takes for a single bogie using the manual process, which also substantially improves lead times."  He adds that the new equipment will more effectively utilise welding skills. “The larger robotic welding cells take the pain out of straight weld jobs, meaning our more experienced manual welders can bypass this mundane task and apply their skills to more complex and engaging projects." 

He emphasises that the new equipment installations will not downsize the workforce.  “To the contrary, existing staff will be significantly upskilled in learning to operate the sophisticated equipment and will benefit from new industry insight ahead of their peers.” He points out that this is in line with the group-wide emphasis on internal skills development. King concludes that DCD’s new rail facility and plant is another way the group is realising government’s vision of building a globally competitive manufacturing industry. 

"Local content thresholds for manufactured goods are one objective to realise government’s vision of a strong domestic manufacturing industry, but companies must also be able to add real value to the overall supply chain through competitive in-house design capability and well-trained employees.  Our recapitalisation programme will position DCD Rolling Stock to deliver on all these fronts.”  Since 1944 DCD Rolling Stock has produced over 130 000 wagons, 1 000 surface locomotives and 4 000 underground locomotives and over 278 000 bogies.