Fin24

Gigaba: New Transnet tender historic

2012-10-22 14:32

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 road."

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 September 2014.

The parties committed to produce most of the locomotives locally.

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 locomotives.

"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.


Comments
  • Poloyatonki1.lee - 2012-10-22 14:48

    Sounds good.

      wesley.bischoff - 2012-10-22 15:26

      Hopefully this will cause less transport by road, increase freight competition, which will lead to lower food prices?

  • gerrit.vanpletzen - 2012-10-22 15:10

    Ask Namibia how many of the Chinese locomotives are still running, before you celebrate. Two of the Chinese crap locomotives are needed to do the work of one of the old Diesel Electric units they had before.

      wesley.bischoff - 2012-10-22 15:27

      Ok Mr Negative

  • annelise.venter.7 - 2012-10-22 15:20

    So more money leaves our shores. We should have made it all locally with local manufacturers. How can you create wealth and jobs if you are always paying foreigners and the profit goes back to their country?

  • frans.visserdsb - 2012-10-22 15:25

    how much?

  • judith.taylor.56 - 2012-10-22 15:47

    A move in the right direction - perhaps I'll be able to go by train to see my grandsons in the Eastern Cape soon!

  • ro.jhb.1 - 2012-10-22 15:52

    Everyone knows the Chinese allocate 5% of the contract price to bribes - so the question o crooked ANC crony - who got this 5%?

  • bobi.tsotetsi - 2012-10-22 15:57

    South Africa has turned into a mini china! Y give our money to de richest

  • thabo.mkokeli - 2012-10-22 16:59

    Joining BRIC nations has really made SA to think doing business with other blocks is betrayal to BRIC.

  • arthur.salvado - 2012-10-22 17:30

    It's only time before massive fraud is revealed. Huge money not to be taken advantage of. Watch the Sunday paper over the next few months. Any bets ? Otherwise, it's good to invest in proper infra structure and nothing wrong with Chinese made goods .

  • Rob Allen - 2012-10-22 17:46

    this will be another effing corrupt disaster but nothing new suppose. well done SA

  • pages:
  • 1