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Manufacture of Railway Locomotives and Rolling Stock in South Africa 2017

Liz Kneale | South Africa | 23 February 2017

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R 1 900.00(ZAR) estimated $ 119.89 (USD)*

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Report Coverage

The Manufacture of Railway Locomotives and Rolling Stock report lists domestic locomotive and rolling stock acquisitions to date, examines current conditions and describes capacity expansion programmes. Also covered are regulatory issues, developments in the rest of Africa and factors influencing the success of the local manufacturing sector. The report profiles 34 companies, including Gibela Rail Transport Consortium (RF) (Pty) Ltd, a joint venture between Alstom Southern Africa Holdings, Ubumbano Rail and New Africa Rail, and CSR E-Loco Supply (Pty) Ltd, the South African subsidiary of China’s CRRC Zhuzhou Locomotive. Also profiled is SMME, CNR Rolling Stock South Africa (Pty) Ltd, which is involved in the design, manufacture, testing, commissioning and maintenance of locomotives and rolling stock. A list of local manufacturers and suppliers of specialised systems and components to the rail manufacturing industry is included in the Appendix of this detailed report.

The Manufacture of Railway Locomotives and Rolling Stock

The railway locomotive and rolling stock manufacturing industry is part of the drive to revitalise the rail industry as a whole, and includes locomotive and rolling stock acquisition programmes by Transnet to the value of R51bn, by the Passenger Rail Association of South Africa (Prasa) valued at R123.5bn, and the proposed expansion programme of the Gautrain Management Agency estimated at R4.3bn.

Local Content Designation

The locomotive and rolling stock acquisition contracts have been awarded to consortiums and joint ventures consisting of global original equipment manufacturers (OEMs), local OEMs and empowerment partners. Successful OEMs are faced with the challenge of contractual obligations which include an average 65% local content, the establishment or expansion of local manufacturing facilities, the development of a core of skilled technical staff thereby ensuring technology transfer, and the creation of a sustainable value chain of local manufacturers and suppliers. Since July 2016 specific minimum threshold percentages for local production and content for the different classes of rail rolling stock have been adapted and range from 55% for diesel locomotives to 80% for Wagons.

Table of Contents

PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 3
2.2. Geographic Position 5
3. SIZE OF THE INDUSTRY 6
4. STATE OF THE INDUSTRY 12
4.1. Local 12
4.1.1. Corporate Actions 20
4.1.2. Regulations and Policy 22
4.1.3. Enterprise Development and Social Economic Development 24
4.2. Continental 25
4.3. International 29
5. INFLUENCING FACTORS 33
5.1. Draft White Paper on National Rail Policy 33
5.2. Localisation Requirements 34
5.3. Supplier Development 37
5.4. Economic Environment 39
5.5. Rising Operating Costs 40
5.6. Labour 40
5.7. Technology, Research and Development (R&D) and Innovation 42
5.8. Environmental Issues 44
5.9. Cyclicality 44
5.10. Electricity Constraints 44
6. COMPETITION 45
6.1. Barriers to Entry 46
7. SWOT ANALYSIS 47
8. OUTLOOK 48
9. INDUSTRY ASSOCIATIONS 48
10. REFERENCES 49
10.1. Publications 49
10.2. Websites 50
APPENDIX 1 52
Suppliers to the Rail Manufacturing Industry 52
APPENDIX 2 61
Current Localisation and Supplier Development Initiatives 61
COMPANY PROFILES 69
ABB SOUTH AFRICA (PTY) LTD 69
ACTOM (PTY) LTD 73
AFRICAN RAIL AND TRACTION SERVICES (PTY) LTD 82
ALSTOM UBUNYE (PTY) LTD 84
AMSTED RAIL AFRICA (PTY) LTD 86
ANSYS LTD 88
AVENG LTD 92
BOMBARDIER TRANSPORTATION SOUTH AFRICA (PTY) LTD 96
CNR ROLLING STOCK SOUTH AFRICA (PTY) LTD 98
CSR E-LOCO SUPPLY (PTY) LTD 100
DCD GROUP (PTY) LTD 102
DENEL VEHICLE SYSTEMS (PTY) LTD 105
ELECTRO-MOTIVE DIESEL AND LOCOMOTIVE COMPANY (PTY) LTD 107
GALISON MANUFACTURING (PTY) LTD 109
GE SOUTH AFRICA TECHNOLOGIES (PTY) LTD 111
GIBELA RAIL TRANSPORT CONSORTIUM (RF) (PTY) LTD 113
GLOBAL RAILWAY ENGINEERING (PTY) LTD 115
GLOBAL RAILWAY INTERNATIONAL (PTY) LTD 117
GRINDROD LOCOMOTIVES (PTY) LTD 118
GRINDROD RAIL CONSTRUCTION COMPANY (PTY) LTD 120
GRINDROD RAIL OPERATIONS (PTY) LTD 122
IMBANI HOLDINGS (PTY) LTD 124
KNORR-BREMSE (SOUTH AFRICA) (PTY) LTD 127
LUCCHINI SOUTH AFRICA (PTY) LTD 129
MEHLEKETO RESOURCING (PTY) LTD 130
R AND H RAIL (PTY) LTD 132
SAFREIGHT LOGISTICS (PTY) LTD 134
SIEMENS (PTY) LTD 136
SIYAHAMBA ENGINEERING (PTY) LTD 139
SWASAP (PTY) LTD 142
TRANSNET SOC LTD 144
TRIDENT SOUTH AFRICA (PTY) LTD 149
VENUS RAILWAY SOLUTIONS (PTY) LTD 151
WICTRA HOLDINGS (PTY) LTD 153