Chinese loco manufacturer to set up SA operation

Transnet and Chinese locomotives manufacturer CSR Zhuzhou Electric Locomotive (CSR) last week signed a Memorandum of Understanding (MoU) that will see CSR setting up manufacturing facilities in South Africa for the production and maintenance of electric locomotives as well as core rail equipment and components for African markets.

The agreement was signed in Beijing by Transnet Group chief executive Brian Molefe and CSR Chairman and President Zhou Qinghe.

The areas of possible cooperation include:
• The establishment of a research and development facility;
• The setting up of manufacturing plants in South Africa;
• Joint initiation and development of business opportunities in Africa;
• Skills transfer, including establishment of a training centre in South Africa; and
• Setting up a refurbishment and manufacturing plant.

Initially, Transnet will make available its manufacturing facilities in South Africa, while the OEM will provide the technology that will enable the manufacture and maintenance of locomotives and core rail components.

CSR will enter into a joint venture with Transnet and the entity will be based in South Africa. 

Molefe is expected to conclude a similar agreement with another locomotive manufacturer, China CNR Corporation, which produces diesel locomotives.

CSR, which produces electric locomotives, was one of four manufacturers to whom Transnet awarded a R50-billion contract for the building of 1064 locomotives earlier this year. The other three were China CNR Corporation, German-based Bombardier Transportation and United States’ General Electric.

All except 70 of the locomotives will be built at Transnet Engineering’s plants in Koedoespoort, Pretoria and Durban.

The award has stringent local content, skills development and training commitments as dictated by the Supplier Development Programme, a government initiative whose main goal is to localise the production of imported machinery and equipment, a Molefe said. “A key element of this is skills transfer that will transform Transnet Engineering into an OEM for locomotives.”