TRANSNET has bypassed domestic engineering groups in awarding contracts valued at R50bn to two Chinese and two North American railway groups for the building of 1,064 electric and diesel locomotives, as part of Transnet’s R308bn market demand strategy to 2019.Heavy engineering firms complain that the first years of South Africa’s drive to localise manufacturing content through preferential procurement has excluded them, despite meeting requirements in the context of the state’s focus on industrialisation in South Africa and the rest of Africa.Transnet’s new locomotives are destined for its general freight business. The state-owned rail utility wants to ease traffic on South Africa’s congested and worn roads system by nearly doubling general rail freight volumes to 170-million tonnes in the next six years.China’s CSR Zhuzhou Electric Locomotive and CNR Rolling Stock SA, and their empowerment partners, will make about 60% of the locomotives. North American groups Bombardier Transporta...
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