Loading...

R51bn rail contract comes into effect

Apr 29 2014 15:47

Johannesburg - A R51bn contract between the Passenger Rail Agency of SA (Prasa) and Gibela Rail Transportation signed last year has come into effect, Prasa said on Tuesday.

"Thanks to this contract, over 3 000 new Metrorail coaches specifically designed for South Africa will soon replace the old generation with high standards of safety, reliability and comfort," CEO Lucky Montana said in a statement.

The contract for the supply of 600 commuter trains, including 3 600 coaches, over the next decade was signed on October 14 last year and came into effect on Saturday.

The contract included construction of a local train manufacturing plant, but the first 20 trains would be built by Alstom Lapa's plant in Brazil.

Gibela would provide technical support and supply spare parts over 18 years.

Gibela would build a R1bn factory in Dunnottar, near Nigel in Gauteng, to produce the 580 trains to be manufactured in South Africa.

Gibela CEO Marc Granger said the company and its shareholders, Alstom and black economic empowerment equity partners, were ready to start work on the project.

"To date, we have signed letters of intent with 35 suppliers for a wide range of components and raw material to be sourced from South Africa," Granger said.

The project would create over 33 000 direct and indirect jobs over 10 years. Gibela would train around 19 000 people during the project.

"From a site establishment perspective, we will be constructing a new factory and this will give us an opportunity to contribute to the creation of sustainable and enduring economic and social developments for the benefit of the people of South Africa," Granger said.

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

prasa  |  lucky montana  |  transport  |  economy

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
31 comments
Comments have been closed for this article.
 

Company Snapshot

We're talking about: MINI BUDGET

Finance Minister Malusi Gigaba has laid bare South Africa's economic woes. Visit our Mini Budget Special for all the action.
 

Money Clinic

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

Voting Booth

Free education in South Africa is:

Previous results · Suggest a vote

Loading...