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souTh african rail freight will soon be pulled by bright red locomotives made in China， as part of the single biggest infrastructure investment initiative by a South African corporation.
The country’s state-owned freight transport and logistics company， Transnet， announced on March 17 that it had awarded a 50 billion Rand （about $4.7 billion） contract for the building of 1，064 locomotives to four global original equipment manufacturers. Two Chinese companies and two North American companies won the bidding.
The multi-billion dollar acquisition is the third major order Transnet has made for new locomotives in implementing its “road to rail” strategy， a key component of Transnet’s more than 300 billion Rand （$28.3 billion） market demand strategy.
Big Chinese contracts
Chinese company CSR Zhuzhou Electric Locomotive， a subsidiary of CSR Corp.， won contracts for building 359 electric locomotives as well as an additional purchase of 100 20E locomotives. It was the second time the company was awarded Transnet tenders， after it was granted a contract to make 95 electric locomotives in September 2012. Another Chinese company， CNR Rolling Stock South Africa， was awarded the contract for 232 diesel locomotives.
According to the contracts， original manufacturers are required to supply the locomotives within three and a half years and realize a localization rate of 60 percent in making electric locomotives and 55 percent in diesel locomotives.
The agreement fulfills the aim of making locomotives for South Africa， as well as assisting the country manufacture “Made in South Africa” locomotives.
Chinese manufacturers have shown an understanding of South African needs， according to CSR President Liu Hualong.
“CSR will gather its resources and work together with its sub-contractors and partners to fulfill our commitment to South Africans： to help realize Made-inSouth Africa locomotives，” he said.
CSR and CNR are two large rail transit comprehensive solution providers in China engaging in the manufacturing of locomotives， passenger coaches， freight wagons， urban rail vehicle and other extended products. Both multi-national groups have more than 20 subsidiaries and about 90，000 employees. Their products have been exported to more than 80 countries.
Liu attributed CSR’s good performance in recent years to its strong research and development operation. “We have four engineering testing centers， nine national-level technological centers and seven nationallevel testing and examining centers，” he said. CSR has also benefited from its efficient financing platforms， complete industrial chain and its mutually beneficial policies. “We keep the win-win concept in our mind when we cooperate with our partners，” Liu said.
For the CSR group， the 359-electric locomotive contract was its second order from Transnet. Back in September 2012， CSR Zhuzhou Electric Locomotive， bid for a $400 million contract for building 95 electric locomotives.
All these contracted locomotives are specifically designed and manufactured for South African conditions. “They are specially designed four-axle and six-axle locomotives for general freight rail business on the 1，067-meter rail gauge in South Africa，” said Johannesburg-based CSR South Africa （PTY） Ltd. General Manager Wang Guojun.
According to Wang， the first 95 electric locomotives are required to reach the power of 3，000 kw， with a maximum speed of 100 km per hour. As many as eight such electric locomotives can be connected to enhance pulling power and they can also be coupled with diesel locomotives. Locomotives designed by CSR are equipped with both AC and DC traction devices， enabling them to automatically adjust to either power supply.
The 359 electric locomotives in the new order are designed to have a pulling power of 4，650 kw and a maximum speed of 100 km per hour. Wireless data traffic and advanced power control systems will be used to raise the electricity use ratio. Most importantly， environmentally-friendly materials will be used to ensure the equipment will not emit poisonous gases at high temperatures.
Made in South Africa
The locomotive acquisition has proven to be mutually beneficial to all parties involved. “The procurement of 1，064 locomotives will be an enormous benefit to Transnet， our customers and our country，” Transnet CEO Brain Molefe said at the signing ceremony.
Molefe said that the acquisition program will enhance locomotive operational efficiency， develop engineering capabilities， improve manufacturing skills and create over 90 billion Rand （$8.5 billion） in localization benefits for the South African economy. Molefe said that approximately 30，000 direct and indirect jobs will be created in the process. In addition， energy savings of 8 to 10 percent for diesels and 80 percent for electrics are projected， including regeneration of energy by electric locomotives.
Transnet’s procurement contracts are not merely equipment acquisition contracts， they also include a transfer of technology， production localization rate， training and export of repair and maintenance services， said Wang. “This helps us create a brand new export model.” Under the terms of the contract for 95 electric locomotives， 10 are permitted to be made in China. Of these 10， nine have already been transported to South Africa and are now currently undergoing tests before going into operation， Wang said. The remaining 85 locomotives of this order will be manufactured and assembled in South Africa by CSR’s local subcontractors. The first of these are expected to be rolled out in May.
Wang said there are now more than 20 CSR engineers and technicians working in the Pretoria-based factory， who help with on-the-job training. To date， about 150 people from the factory have received training in CSR Zhuzhou Electric Locomotive.
Wang said [our] manufacturing locomotives in [CSR’s sub-contactors’ factory in] South Africa would create 2，000 jobs and help improve the production level of more than 500 local spare parts producers.
To promote localization， CSR is considering building an industry park in South Africa with its partners. Wang said that this move would not only promote production localization， but also create much needed jobs.
The country’s state-owned freight transport and logistics company， Transnet， announced on March 17 that it had awarded a 50 billion Rand （about $4.7 billion） contract for the building of 1，064 locomotives to four global original equipment manufacturers. Two Chinese companies and two North American companies won the bidding.
The multi-billion dollar acquisition is the third major order Transnet has made for new locomotives in implementing its “road to rail” strategy， a key component of Transnet’s more than 300 billion Rand （$28.3 billion） market demand strategy.
Big Chinese contracts
Chinese company CSR Zhuzhou Electric Locomotive， a subsidiary of CSR Corp.， won contracts for building 359 electric locomotives as well as an additional purchase of 100 20E locomotives. It was the second time the company was awarded Transnet tenders， after it was granted a contract to make 95 electric locomotives in September 2012. Another Chinese company， CNR Rolling Stock South Africa， was awarded the contract for 232 diesel locomotives.
According to the contracts， original manufacturers are required to supply the locomotives within three and a half years and realize a localization rate of 60 percent in making electric locomotives and 55 percent in diesel locomotives.
The agreement fulfills the aim of making locomotives for South Africa， as well as assisting the country manufacture “Made in South Africa” locomotives.
Chinese manufacturers have shown an understanding of South African needs， according to CSR President Liu Hualong.
“CSR will gather its resources and work together with its sub-contractors and partners to fulfill our commitment to South Africans： to help realize Made-inSouth Africa locomotives，” he said.
CSR and CNR are two large rail transit comprehensive solution providers in China engaging in the manufacturing of locomotives， passenger coaches， freight wagons， urban rail vehicle and other extended products. Both multi-national groups have more than 20 subsidiaries and about 90，000 employees. Their products have been exported to more than 80 countries.
Liu attributed CSR’s good performance in recent years to its strong research and development operation. “We have four engineering testing centers， nine national-level technological centers and seven nationallevel testing and examining centers，” he said. CSR has also benefited from its efficient financing platforms， complete industrial chain and its mutually beneficial policies. “We keep the win-win concept in our mind when we cooperate with our partners，” Liu said.
For the CSR group， the 359-electric locomotive contract was its second order from Transnet. Back in September 2012， CSR Zhuzhou Electric Locomotive， bid for a $400 million contract for building 95 electric locomotives.
All these contracted locomotives are specifically designed and manufactured for South African conditions. “They are specially designed four-axle and six-axle locomotives for general freight rail business on the 1，067-meter rail gauge in South Africa，” said Johannesburg-based CSR South Africa （PTY） Ltd. General Manager Wang Guojun.
According to Wang， the first 95 electric locomotives are required to reach the power of 3，000 kw， with a maximum speed of 100 km per hour. As many as eight such electric locomotives can be connected to enhance pulling power and they can also be coupled with diesel locomotives. Locomotives designed by CSR are equipped with both AC and DC traction devices， enabling them to automatically adjust to either power supply.
The 359 electric locomotives in the new order are designed to have a pulling power of 4，650 kw and a maximum speed of 100 km per hour. Wireless data traffic and advanced power control systems will be used to raise the electricity use ratio. Most importantly， environmentally-friendly materials will be used to ensure the equipment will not emit poisonous gases at high temperatures.
Made in South Africa
The locomotive acquisition has proven to be mutually beneficial to all parties involved. “The procurement of 1，064 locomotives will be an enormous benefit to Transnet， our customers and our country，” Transnet CEO Brain Molefe said at the signing ceremony.
Molefe said that the acquisition program will enhance locomotive operational efficiency， develop engineering capabilities， improve manufacturing skills and create over 90 billion Rand （$8.5 billion） in localization benefits for the South African economy. Molefe said that approximately 30，000 direct and indirect jobs will be created in the process. In addition， energy savings of 8 to 10 percent for diesels and 80 percent for electrics are projected， including regeneration of energy by electric locomotives.
Transnet’s procurement contracts are not merely equipment acquisition contracts， they also include a transfer of technology， production localization rate， training and export of repair and maintenance services， said Wang. “This helps us create a brand new export model.” Under the terms of the contract for 95 electric locomotives， 10 are permitted to be made in China. Of these 10， nine have already been transported to South Africa and are now currently undergoing tests before going into operation， Wang said. The remaining 85 locomotives of this order will be manufactured and assembled in South Africa by CSR’s local subcontractors. The first of these are expected to be rolled out in May.
Wang said there are now more than 20 CSR engineers and technicians working in the Pretoria-based factory， who help with on-the-job training. To date， about 150 people from the factory have received training in CSR Zhuzhou Electric Locomotive.
Wang said [our] manufacturing locomotives in [CSR’s sub-contactors’ factory in] South Africa would create 2，000 jobs and help improve the production level of more than 500 local spare parts producers.
To promote localization， CSR is considering building an industry park in South Africa with its partners. Wang said that this move would not only promote production localization， but also create much needed jobs.