Name of the Project
Transnet Freight Rail (TFR) 1 064 locomotives acquisition programme.

Location
South Africa.

Project Owner/s
TFR.

Project Description
The project involves the acquisition of 1 064 locomotives – 599 electric and 465 diesel – for TFR's General Freight Business (GFB).

Contracts for the project were awarded to consortiums led by four major international locomotive manufacturers:

•    Wabtec Corporation – 233 Class 44 diesel locomotives, 
•    CNR Rolling Stock South Africa (CNR RSSA) – 240 Class 45 diesel locomotives, 
•    CRRC E-Loco Supply (formerly CSR E-Loco Supply) – 359 Class 22E electric locomotives, and 
•    Bombardier Transporation South Africa (BTSA) – 232 Class 23 E electric locomotives.

The contracts have stringent local-content, skills development and training commitments as dictated by the supplier development programme.

Potential Job Creation
Not stated.

Capital Expenditure
R54.5-billion.

Planned Start/End Date
Not stated.

Latest Developments
A South African court has set aside an R8-billion contract between TFR and Wabtec Corp for 233 diesel locomotives, part of a long-running crackdown against corruption in government institutions.

The Gauteng High Court’s decision comes seven years after President Cyril Ramaphosa first referred claims of graft at logistics company Transnet for investigation.

A South African panel that spent four years probing graft in 2022 found Transnet fell victim to racketeering during former President Jacob Zuma’s rule, making it the “primary site” of State capture, a local term to describe how private companies worked with government and State-company officials to funnel funds from these entities.

The April 14 ruling marks “a pivotal advancement in our ongoing efforts to combat State capture and restore integrity in South Africa’s state-owned enterprises,” the Special Investigating Unit (SIU) – a government agency that probes State corruption – and Transnet said.

As part of the settlement, Transnet will keep the locomotives delivered by Wabtec, formerly GE South Africa Technologies, the SIU said. Wabtec will retain all payments received under the contract, while Transnet will receive R70.4-million.

Further, Wabtec will provide Transnet with a credit of R70.4-million “to fulfil outstanding supplier development obligations”.

Key Contracts, Suppliers and Consultants
GE South Africa Technologies (233 diesel locomotives); CNR RSSA (232 diesel locomotives); CRRC E-Loco Supply (359 electric locomotives); BTSA (240 electric locomotives); Booyco (air conditioning for locomotive main cab); Duys (manufacture of the fuel tanks); Wabtec (radiators) and TE (manufacturing and assembling the locomotives’ platform, traction motors, bogies and alternators).

Contact Details for Project Information
TFR media relations manager Thembekile Klass, tel +27 11 544 9678 or email TFRmedia@transnet.net.