Name and Location
New Rolling Stock Procurement Programme, nationwide, South Africa.

Client
Passenger Rail Agency of South Africa (PRASA).

Project Description
The Department of Transport, through PRASA, is to invest in a new rail rolling stock fleet-renewal programme across South Africa.

The programme will upgrade and expand the current rail infrastructure by introducing new stock for commuter rail service Metrorail, and by offering more routes between destinations in South Africa.

The aim is to replace the old fleet, which has reached the end of its design life.

As part of the procurement programme, PRASA aims to upgrade and construct fully functional modern maintenance depots at Braamfontein, Wolmerton, Salt River, Durban Yard and Springfield, which will support and service PRASA’s new metro trains by the time the first new train sets are delivered in the first quarter of 2015. The new depots will provide for the maintenance demand of the new, increased fleet, and PRASA’s existing metro trains, until 2034.

The modernisation will mainly consist of the refurbishment or upgrade of selected existing buildings, the construction of additional operational buildings and the reconstruction of the staging yards. The initial phase of the works will include the demolition of selected existing buildings in preparation for the upgrade.

The upgrade will result in the introduction of the following technologies at the depots to optimise operational efficiencies:
• new in-floor lifting system (synchronised retractable train lifting jacks);
• new universal lifting system, which allows for the synchronised lifting of different types of trains;
• underfloor wheel lathe, which enables wheel set profiling in situ; and
• yard signalling, to allow for the efficient control of train movements within the yards.

Value
R123-billion.

An extra R14.5-billion will be invested in signalling, new depots, modern stations and integrated ticketing.

Duration
The 20-year procurement process will comprise two periods – the first ten-year contract will run from 2015 and the second from 2025.

The first new trains are expected for delivery in 2015.

Latest Developments
The first 20 trains in PRASA’s ten-year, R51-billion deal to procure 600 new trains, should be shipped from Brazil by the end of 2015, says Gibela CEO Marc Granger.

Granger says that PRASA should start using these first new trains, which will replace its old Metrorail rolling stock, in 2016.

The remaining 580 trains of the contract will be manufactured at a new industrial park in Dunnottar, on the East Rand, with construction on this site to start in February 2015.

At full production, this facility should produce 62 trains a year.

Production of the first South African trains is scheduled to start in 2017. They are expected to have about 65% to 70% local content.

The R51-billion price tag is subject to inflation and exchange rate fluctuations.

Payment during the first five years of the deal will be in rands, moving to multicurrency payments.

Gibela has already received its first payment from Treasury.

Granger has also noted that Gibela has secured a maintenance, spares supply and technical support contract from PRASA for a period of 19 years, in a deal worth an estimated R10-billion.

This figure will be influenced by the trains’ operating schedule.

In executing its contracts, Gibela will create 1 500 direct jobs, says Granger, and another 8 000 direct jobs in the supply chain.

Just under R800-million has been earmarked for skills development, R746-million for the development of rail sector enterprises and R273-million for community programmes.

Ten South African engineers are already participating in an 18-month training programme.

The train Gibela will supply to PRASA is the X’Trapolis MEtric GAuge (Mega) unit.

Each train will have six cars, and will be about 120 m to 130 m long. One train will be able to carry 1 200 passengers, with WiFi and closed circuit television infrastructure inside.

Each Mega unit will have a stainless steel structure, and 90% of its components will be recyclable. The maximum speed will be 120 km/h.

“We are busy identifying existing suppliers in the country. We also have to organise the establishment of some new businesses,” says Granger.

These suppliers will also be housed at the Dunnottar site.

The 70 ha industrial park will include a 36 ha train assembly site, a 10 ha bogie, traction and motor site, and a 25 ha supplier park.

The site might revert to PRASA at the end of the ten-year train assembly contract.

Granger says the global General Electric (GE) deal, currently being negotiated, whereby GE will acquire Alstom’s energy-related businesses, will not influence the Gibela–PRASA transaction.

The deal affects Alstom’s power-related businesses only, with all transport activities remaining with the French Alstom group.

Key Contracts and Suppliers
KPMG, Gibb Engineering and Science, Interfleet Technology and Edward Nathan Sonnenbergs (ENS – feasibility study) and Gibela Rail Transportation, comprising Alstom and its black economic-empowerment equity partners (Phase 1 – rolling stock supply contract).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
PRASA, Moffet Mofokeng, tel +27 12 748 7000 or email momofokeng@prasa.com.
KPMG corporate finance Walter Meyer, tel +27 21 408 7220 or email market.engagement@kpmg.co.za.
Gibb Engineering and Science, tel +27 11 519 4600 or fax +27 11 807 5670.
Interfleet Technology, tel +44 1332 223000 or fax +44 1332 223001.
ENS, tel +27 11 269 7600, fax +27 11 269 7899 or email info@ensafrica.com.
Alstom, tel +27 11 518 8100.