Advertise with fastmoving.co.za
 
 

Transnet eyes potential for supplying wagons
Transnet eyes potential for supplying wagons

Transnet eyes potential for supplying wagons

FMCG SUPPLIER NEWS

Business Day - Oct 7th 2011, 08:14

Transnet unit participating in a tender to supply as many as 740 wagons for Mauritania’s state rail authority.  

TRANSNET Rail Engineering (TRE), the train-building unit of state-owned freight and logistics company Transnet, is pushing to establish itself as a supplier of wagons and locomotives following confirmation that it is participating in a tender to supply as many as 740 wagons for Mauritania’s state rail authority.

In an interview yesterday, the company’s GM for marketing, Thoba Majoka, said its wagons sell for R750000 each, which makes the contract worth about R550m.

"It is a large contract and there are many other contracts on the continent. That is why it’s important we market ourselves and say we are available to manufacture," he said.

Mauritania needs the wagons for transporting iron ore.

TRE has passed the technical capability test for the Mauritania contract and on October 16 the company’s financial capability will be evaluated, he said.

Transnet is already building [wagons for Rio Tinto to move coal from its mine in northern Mozambique, TRE CEO Richard Vallihu said. "We have a contract to build 200 wagons for Rio Tinto; we have completed 150 of those wagons."

Mr Majoka said the balance of the contract would be completed by about December.

In the Democratic Republic of Congo, TRE was pursuing a smaller tender to supply 30 wagons to the state rail authority, he said.

"We went to the (Congo) for the first time and it’s a small contract, but it’s important for us. They want dual-purpose wagons that can carry containers and be converted to be able to carry logs."

TRE competed with four other companies, two of them Chinese, one Japanese and one French. "We put in a very competitive price. They opened the tenders when we were there and we saw we were the lowest in terms of price," he said.

The order, worth about R25m, is important for TRE because "there is huge potential in that country".

In SA, there is a good possibility that the contract TRE has with General Electric to build 90 heavy- load Class 43 locomotives could be extended by a further 43 locomotives to a total of 133.

"It has not been confirmed but there are discussions."

The current General Electric contract for locomotives is the largest Transnet has with a locomotive supplier and is part of the programme Transnet has to revitalise its aging fleet in order to meet the demands of coal and iron ore mining companies.

Of the 90 locomotives being built in SA under the General Electric contract, 10 were built in the US. Seven have been completed and are in service on the coal and iron ore lines. The balance of the contract for 83 locomotives will be completed by March next year.

TRE is also eyeing the 20-year fleet renewal programme of the Passenger Rail Agency of SA (Prasa), the owner and operator of commuter rail service Metrorail.

Prasa will spend about R110bn over the next 20 years on the acquisition of new coaches, wagons and locomotives.

"We have the capability to play some role and be a part of the (Prasa) programme," said Mr Majoka, adding that TRE also had the capability to play a part in the localisation programme.

The state has indicated it wants the successful winners of the Prasa tenders to ensure that at least 65% of the content is obtained from SA.

"We want them to consider us as well … it is an opportunity to grow our skills even further and create a proudly SA rail company that can supply Africa with coaches and wagons rather than going to China and Europe," said Mr Majoka. 

Read more about: logistics | services | supplier news

Related News

Blackstone in $19bn deal to buy US warehouse assets from Singapore’s GLP
04/06/2019 - 10:57
Blackstone Group is buying US industrial warehouse properties from Singapore-based logistics provider GLP for $18.7bn, in what the companies billed as the largest private real estate transaction globally.

Beating the #BlackFriday delivery blues
20/11/2018 - 10:16
The biggest challenge on Black Friday isn’t a system crash or a payment failure. It’s the delivery problems that come after the purchases have been made. This year, courier companies are working closely with e-tailers to ensure that delivery expectations are met – but consumers can also play their part in getting their parcels as quickly and efficiently as possible.

Growing import demand contributes to expanding logistics and warehousing sector
16/11/2018 - 11:05
The inflow of imports, most consumer goods, is contributing to increasing demand for storage, logistics and warehousing services in South Africa, and a clear correlation is visible in the trend of wholesale and retail trade sales in comparison to imports.

The future of logistics depends on four key elements: customer-centricity, sustainability, technology and people
01/10/2018 - 09:32
DHL, the world’s leading international express services provider, showcased the key trends that could impact the logistics industry in the next five to ten years, at an event held in Sandton, Johannesburg on Thursday 20 September.

Customer engagement through gamification
17/08/2018 - 13:55
Gamification provides insurers with an ideal platform to enhance customer engagement. With apps like MEGA MEDS, that turns medicine management into a fun experience, and the likes of the Discovery Insure Driving Challenge, that rewards customers who are good drivers, there is significant potential for insurers and others to take a different approach to dealing with stakeholders.