• 10 tips to find bargains

    Susan Erasmus gives advice on how bargain hunters can get the most bang for their buck.

  • Inside Labour

    Labour's bitter breaches need to be seen in historical context, says Terry Bell.

  • Rich getting richer

    Economists differ on how to tackle the chasm between rich and poor, says Leopold Scholtz.

Loading...
See More

Transnet to get locomotive upgrade

Feb 21 2011 13:37 Sapa

Related Articles

New CEO to help Transnet get money

Afric Oil to use Transnet pipeline

Transnet issues bond to fund expansion

Transnet chair to take on dual role

Four men race for Transnet top job

Transnet gets new chief

 
Pretoria - Public Enterprises Minister Malusi Gigaba on Monday unveiled the latest locomotive to enter service with Transnet as part of its R93.5bn capitalisation scheme.

Neither Transnet nor General Electric would say how much each locomotive would cost.

In terms of the deal, 10 of the General Electric C30ACi locomotives will be built in the United States and 90 will be built at Koedoespoort over the next two years.

It was not the company's "policy" to disclose the price of the locomotives, said GE president and chief executive of transportation Lorenzo Simonelli.

Gigaba said the locomotives were part of Transnet's fleet renewal plan and the company's R93.5bn five-year capital investment programme, which could be increased to R110bn.

According to Transnet and GE, three of the locomotives would have the same hauling power of four of the older locomotives in use and would save about 600 000 litres of fuel a year.

The locomotives would also be more environmentally friendly, producing less carbon dioxide than older models, and would be known locally as GE class 43 locomotives.

They are the first of their kind in Africa to use AC electric power.

"The many years of neglect of public investment in infrastructure capacity has created a very (sic) untenable situation for economic growth and development, and impacted negatively on jobs and skills development, especially those of artisans and apprentices as well as the country's local industrial and manufacturing capability," said Gigaba.

He said neglect of the rail network had denied the country many economic opportunities and economic capacity.

The neglect, which had taken place since 1992, had reduced the capacity of the manufacturing sector to export and to distribute between the country's economic hubs.

He said that even the current investment in infrastructure was "not at levels that we would like to see it at."

The improvement in the country's rail infrastructure would also help to take pressure off the country's roads.

Gigaba said he would like to see Transnet achieve employment equity targets, because failure by state-owned enterprises would send a poor signal to the private sector.

"Failure by state-owned enterprises to transform undermines and puts the brakes on the government's transformation objectives in the broader corporate sector, as the latter feels no pressure to transform if the former is not itself transformed. We are going to demand concrete action in this regard," he said.

general electric  |  transnet  |  malusi gigaba

NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
9 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

Brought to you by BizNews

More from BizNews

We're talking about:

SMALL BUSINESS

Johannesburg has been selected to host the Global Entrepreneurship Congress in 2017. "[The congress] will ensure that small business development remains firmly on the national agenda and the radar screen of all stakeholders, the Small Business Development minister said.
 
 

10 most expensive cars In the world

This is car porn at its best!

 
 

Luxury living

Seven of the most expensive children's toys ever made
5 millionaires turned murderers
The youngest billionaires in the world and how they made it
Watch: Flying first class has never been this luxurious!

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

How do you see your boss? He/sheis:

Previous results · Suggest a vote

Loading...