Pretoria - A consortium led by a Chinese manufacturer was
announced as the successful bidder to supply 95 electric locomotives for
Transnet on Monday.
"This tender is historic," Public Enterprises
Minister Malusi Gigaba told reporters at Transnet Freight Rail's Capital Park
depot in Pretoria.
Seventy percent of the deal would go to CSR Zhuzhou Electric
Locomotive (CSR) and 30% to South African consortium Matsetse Basadi.
"This deal will make South Africa part of the global
supply and manufacturing chain.
Gigaba said the rail system remained the key to improving
trade, lowered carbon footprints, and also reduced road traffic.
"The last two decades have seen a migration from rail
To reverse this, the railways had to improve quality.
The first batch of locomotives would be delivered to
Transnet Freight Rail by December 2013 and the last batch was planned for
The parties committed to produce most of the locomotives
The first 10 locomotives would be assembled in CSR's
factories in China while the remainder would be made in South Africa.
The purchase was part of Transnet's long-term renewal
programme to increase capacity while also improving the average age of its
fleet, Gigaba said.
Transnet invited additional proposals for the supply of 1 064
"These are to meet and maintain the market demand
strategy volumes targets in line with the company's R300bn seven-year
investment programme," the company said in a statement.