Loading...
See More

Ndebele launches R97bn rail upgrade plan

Apr 05 2011 13:50 Fin24 & I-Net Bridge

Related Articles

Transnet capex critical: Gigaba

Not a cent spent on fast rail: Ndebele

High-speed rail plan goes to cabinet

Zuma's son slams rail deal reports

Rail revamp long overdue: Ndebele

BP unveils R140m rail facility

 
Johannesburg  - Transport Minister Sibusiso Ndebele on Tuesday announced a major upgrade to rolling stock for the rail industry and promised to create thousands of jobs in the process.

Procurement of rolling stock for Metrorial and long distance rail services will cost in the region of R97bn over 18 years, Ndebele said.

The upgrade will provide an "essential foundation to continued growth and economic development", he said.

"This will enable us to significantly increase the country's passenger rail transport network, offering new routes and destinations throughout South Africa," Ndebele said in an address to manufacturers and financiers.

Ndebele said funding for the project will come from a partnership with private sector manufacturers and financiers, as the state is unable to fund "such a large programme" from its coffers.

Tax-based allowances will be offered to investors in some cases.

An international investors' conference will be held in Cape Town in June to continue discussions on SA's rail upgrade, Ndebele said.
 
The government will ensure that procurement is in line with its industrial policy and growth objectives, and attention will be paid to developing industry through local manufacturing and sourcing of local content.

Broad-based black economic empowerment will also be considered,  he said.

Ndebele said the investment in the rolling stock would over 18 years create up to 100 000 "job opportunities".

"It is expected that through this programme, between 72 000 (and) 100 000 job opportunities for (the) skilled and semi-skilled labour force will be created over an 18-year period," he said.

The upgrade will stimulate the up-skilling of South African engineers, training of mechanical and electrical engineers, technologists and technicians, he added.

Ageing rail stock means services are unreliable and the government wants to embark on the replacement programme by 2013/4, Ndebele said.

In addition to tax breaks, there will be grant-based incentives and loan-based ones from the Industrial Development Corporation.

Ndebele said a team of advisers had been commissioned through the Passenger Rail Agency of SA and a feasibility study is expected to be completed by June.

He will then take the matter to the cabinet and the procurement process will start once cabinet approval is granted.

"In terms of the draft programme, we therefore expect the procurement process to commence immediately thereafter, with March 2012 being the latest for the commencement of this important process," he said.
sibusiso ndebele  |  rail  |  jobs
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
4 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

Retailers of any shape and size can now unlock the power of mobile transacting.
 
 

Goalkeeper saves five penalties with his FACE!

Nothing, and we mean nothing, will keep goalkeeper Scott Stirling from stopping the ball!

 
 

Men24.com

Hottie of the day: Jesselyn
This invention makes farts smell like chocolate!
11 things men don’t know about their clothes
Hilarious mortal kombat elevator prank!

Money Clinic

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