Name and Location
Transnet Freight Rail (TFR) 1 064 locomotives acquisition programme, South Africa.

Client
TFR.

Project Description
The project involves the acquisition of 1 064 locomotives – 599 electric and 465 diesel – for TFR's General Freight Business unit by 2018.

Contracts for the project have been awarded to consortiums led by four major international locomotive manufacturers – General Electric (GE), China North Rail (CNR), China South Rail (CSR) Zhuzhou Electric Locomotive and Bombardier Transportation (BT). GE South Africa Technologies will supply 233 diesel locomotives; CNR Rolling Stock South Africa (CNR RSSA) 232 diesel locomotives; CSR Zhuzhou Electric Locomotive 359 electric locomotives; and BT South Africa (BTSA) 240 electric locomotives.

The contracts have strict local-content requirements of 40% each, with only 70 locomotives to be internationally produced, and the remainder at Transnet Engineering’s (TE’s) Koedoespoort and Durban facilities, in Gauteng and KwaZulu-Natal respectively.

Value
Transnet announced in March 2015 that it had secured two funding agreements, collectively valued at R13-billion, with the US Export-Import (Ex-Im) Bank and Canadian export credit agency Export Development Canada, supporting TFR’s acquisition of diesel and electric locomotives from GE and BT.

The US Ex-Im Bank agreement entails a 14-year, R6-billion guarantee being extended to Transnet for the acquisition of diesel locomotives from GE. The guarantee assisted TFR in raising funds from South African financial institutions – R2.25-billion from Absa/Barclays, R2.25-billion from Standard Bank and R1.5-billion from Old Mutual.

Export Development Canada provided TFR with a 13-year, R5.24-billion loan facility, which, together with a R1.75-billion loan from South Africa’s Investec Bank, will be used to acquire 240 electric locomotives from BT.

These locomotives will be assembled at TE’s Durban facility.

Duration
One-hundred-and-forty-eight locomotives will be delivered in 2016, 492 in 2017 and 424 in 2018.

Latest Developments
Late last year GE South Africa started production of the 233 GE Evolution Series diesel locomotives it has been contracted to supply to State-owned Transnet Freight Rail (TFR) as part of TFR’s acquisition of 1 064 electric and diesel locomotives.

Approval to begin local manufacturing was granted to GE in March 2014, following delivery of the first six Evolution Series locomotives, which were manufactured by GE, in the US.

These locomotives will serve as blueprints for the remaining 227 locally built locomotives that GE will deliver as part of Transnet's locomotive fleet renewal programme.

The group asserts that the locomotives will have 55% local content, making them the “most African” locomotives of their kind.

Booyco Engineering, based in Germiston, is building the air conditioner for the locomotive’s main cab.

Duys Engineering Group, with its head office in Pinetown, KwaZulu-Natal, but with branches across South Africa, is manufacturing the fuel tank.
TE will manufacture and assemble the locomotives’ platform, traction motors, bogies and alternators at its facility in Pretoria, while the radiators will be produced by Germiston-based Wabtec South Africa.

Powered by GE Transportation’s 12-cylinder, four-stroke diesel engine, the Evolution Series engine produces 4 200 GHP.

GE says the turbocharged engine provides efficiency, ensures fewer emissions and extends overhaul intervals; it also enhances cooling and higher-strength materials to improve reliability and allow for future increases in power and efficiency.

Key Contracts and Suppliers
GE South Africa Technologies (supply of 233 diesel locomotives); CNR RSSA (232 diesel locomotives); CSR Zhuzhou Electric Locomotive (359 electric locomotives); BTSA (240 electric locomotives); Booyco (air conditioning for locomotive main cab); Duys (manufacture of the fuel tanks); Wabtec (radiators) and TE (manufacturing and assembling the locomotives’ platform, traction motors, bogies and alternators).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Transnet, tel +27 11 308 3000, fax +27 11 308 2638 or email enquiries@transnet.net.
Booyco Engineering, +27 11 974 8640, fax +27 866 141 078 or email info@booyco.co.za.
Duys Engineering Group, tel +27 31 713 1722, fax +27 31 713 1727 or email enquiries@duys.co.za.
Wabtec South Africa, tel +27 11 974 3813.
TE, tel +27 86 172 7427.