Friday, 23 November 2012 08:19

Transnet awards locomotive tender

Transnet awards contract for supply of 95 electric locomotives as part of fleet renewal project.

South Africa’s largest role player in the freight logistics chain announced the winning bidders of its procurement of 95 electric locomotives on the 22nd of October.

The purchase forms part of Transnet’s long-term fleet renewal programme to increase capacity, while improving the average age of its fleet. This is to deliver on the requirements of the Market Demand Strategy (MDS). In terms of the MDS, Transnet Freight Rail is expected to grow its volumes from the current 201 million tonnes per annum to over 350 million tonnes in just seven years.

Transnet’s Public Enterprises Minister, Mr Malusi Gigaba, announced the successful bidder of the purchase, which was done with the intention of boosting the operational performance, reliability and overall energy efficiency of the rail service.

The winning bidder is a joint venture between Chinese manufacturer CSR Zhuzhou Electric Locomotive (CSR), which has a 70% stake in the project, and Matsetse Basadi. It will be known as CSR E-loco Supply.   

The conglomerate and Transnet have agreed on a delivery schedule that requires the delivery of the first batch by December 2013. The delivery of the final batch is planned for September 2014.

The first 10 locos will be assembled in CSR’s factories in China, while the remainder will be made in South Africa in line with the agreed supplier development targets of 60,5% of the total value of the contract.

In addition to the 95 locomotives that will be supplied by CSR E-loco Supply, Transnet has invited additional tenders for the supply of 1064 locomotives. These are to meet and maintain the MDS volumes targets in line with the company’s R300 billion seven-year investment programme.  

According to Gigaba, the award followed an open and public tender process which drew considerable interest from various national and international companies. The evaluation had three stages of criteria, which included Broad Based Black Economic Empowerment and Supplier Development, technical, and commercial. The criteria were all detailed in formal invitations for proposals (RFPs or requests for proposals). Transnet’s commitment to the Competitive Supplier Development Programme meant that localisation, sustainability and skills development had the highest weighting within the supplier development stage.

Full thanks and acknowledgement are given to for the information given to write this article.

GIL Africa 2017