South African State-owned defence industrial group Denel is hoping to enter the railway manufacturing sector, following the launching of multibillion-rand programmes to modernise the country’s national railway network. These include the acquisition of new locomotives and both passenger and freight rolling stock and the upgrading of railway infrastructure.

“We have a local company with a strong history of success in the delivery of the most sophisticated engineering and technology projects,” affirmed Denel group CEO Riaz Saloojee. “It just makes sense for the rail industry to tap into the knowledge and systems that are already available locally and have helped to build the country’s much-admired defence sector.”

The group sees the railway modernisation programme as an opportunity to expand its business, make it more profitable and create more skilled jobs while also contributing to the revitalisation of the country’s strategic infrastructure. It would also support the government’s desire that State-owned companies share their knowledge and expertise. To this end, Denel is currently negotiating with the State-owned railway operators Transnet and the Passenger Rail Agency of South Africa (PRASA) as well as with the consortium executing the 20-year railway refurbishment programme.

“While Denel has made its mark in the aerospace and defence industries, delivering world-class products like the Rooivalk helicopter and the Badger infantry combat vehicle to support the SANDF [South African National Defence Force], in recent years we have also expanded our research and development activities towards advanced manufacturing,” he stated.

The group believes that systems developed to guide missiles could be adapted for use in railway signalling networks and that technology used in the production of complex aircraft parts could be used to make interiors for railway coaches. Thus, Denel Aerostructures produces large, predominantly composites and aluminium structures, that are both light and strong, for the Airbus A400M military airlift aircraft. Panels made from the same materials could be used in the manufacture of new coaches.

The Denel group can also provide expertise and capacity in steel metal machining and systems engineering and design. “These are just some of the skills and experience which we can offer to PRASA and Transnet,” said Saloojee. “This will also enable them to meet their own objectives to produce more than 65% of the contract’s value within South Africa and to generate direct and indirect jobs.”