R30-bn locomotive tender up for grabs

A tender for the purchase of 1000 new diesel and electric locomotives valued at around R30 billion will open before the end of the current financial year, according to Transnet GCE Brian Molefe. He said this would be “one big tender” that would ramp up efficiency within the organisation. “We intend to pursue a programmatic procurement process because once we start setting up the production facilities to manufacture these locos in South Africa, you can’t change suppliers every year and change the production lines every year. So it will be one big tender.” Molefe said during the current financial year Transnet was planning to purchase at least 95 new electric locomotives. “This does not form part of the 1000 locomotive programme. The tender for these locos is already out.” According to Molefe, the purchase of the locomotives will significantly boost local content levels. In a deal with General Electric for the order of 100 locomotives local content of 67% was achieved. “We are now getting average local content of around 52% but expect to improve this figure in the long run. “Already R2.9 billion has been spent on local content by international suppliers while they are at the same time transferring knowledge and expertise to up-skill local suppliers. We are also seeing increased on-the-job training and apprenticeships being built into international supplier contracts.”