Name of the Project
Transnet Freight Rail (TFR) 1 064 locomotives acquisition programme.

Location
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 (GFB) 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 Class 44 diesel locomotives, CNR Rolling Stock South Africa (CNR RSSA) 232 Class 45 diesel locomotives, CSR Zhuzhou Electric Locomotive 359 Class 22E electric locomotives and BT South Africa (BTSA) 240 Class 23 E electric locomotives.

The contracts have stringent local-content, skills development and training commitments as dictated by the supplier development programme.

All but 70 locomotives will be built at Transnet Engineering (TE) plants in Pretoria and Durban. The suppliers have, to date, complied with and exceeded the minimum local-content criteria for rolling stock of 60% for electric locomotives and 55% for diesel locomotives.

Potential Job Creation
Since the award of the contract, Bombardier, in partnership with its local supply chain, has created just over 500 jobs, with more than 300 people working directly for Bombardier South Africa. Of these, 140 are directly involved in production of the locomotives. This will ramp up to 167 during peak production.

Bombardier is working with 220 local suppliers, of which 23 are black-owned small, medium-sized and microenterprises, and 12 are small development enterprises.

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
TFR has formally accepted the first of 460 TRAXX Class 23 E locomotives at the Transnet Engineering head office, in Durban.

Fifteen locomotives are in the final stages of dynamic acceptance testing and are expected to start work in the new year. A further eight are in production.

Production will ramp up next year, with all 240 locomotives expected to be delivered by the end of 2019.

The contract for the trains was signed in 2014 between Canadian train manufacturer Bombardier and Transnet as part of the parastatal’s Market Demand Strategy (MDS). The MDS aims to renew the fleet, decreasing the average age of locomotives from 44 to 25 years. 

Out of the four contracts concluded with four original-equipment manufacturers for the manufacture of 1 064 locomotives, Bombardier has been the only one to prototype a locomotive specifically designed for the South African track gauge, railways standard and climate. The new 23 E can reach speeds of 100 km/h. It has a separate blower for every traction motor, increasing cooling, power and overall reliability.

The Wired Train Bus communication allows for up to eight locomotives to work together for heavier loads and the train is ready to operate using radio-distributed power – a wireless communication system that allows for the operation of long trains, with locomotives distributed along each train.

Bombardier’s MyBT fleet software transmits real-time data about the locomotive, improving maintainability, and high-value components have been moved from the roof to the side of the locomotive, increasing reliability and reducing the chance of damage. The locomotive has a particularly robust underframe that includes an anticlimber, a safety device which limits impact in the event of a crash or derailment.

Key Contracts and Suppliers
GE South Africa Technologies (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
TFR media relations manager Thembekile Klass, tel +27 11 544 9678 or email TFRmedia@transnet.net.