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Railway Transport Manufacture Locomotives Rolling Stock industry South Africa

Railway Transport and Manufacture of Locomotives and Rolling Stock Industry in South Africa 2023

Michael Felton | South Africa | 23 March 2023

Railway Transport and Manufacture of Locomotives and Rolling Stock Industry in South Africa 2021

Liz Kneale | South Africa | 12 March 2021

Railway Transport and Manufacture of Locomotives and Rolling Stock Industry in South Africa 2019

Liz Kneale | South Africa | 22 August 2019

Railway Transport and Manufacture of Locomotives and Rolling Stock Industry in South Africa 2017

Liz Kneale | South Africa | 28 July 2017

Railway Transport and Manufacture of Locomotives and Rolling Stock Industry in South Africa 2017

Liz Kneale | South Africa | 23 February 2017

Railway Transport and Manufacture of Locomotives and Rolling Stock Industry in South Africa 2015

Liz Kneale | South Africa | 27 October 2015

Railway Transport and Manufacture of Locomotives and Rolling Stock Industry in South Africa 2014

Liz Kneale | South Africa | 08 October 2014

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Report Coverage

This report focuses on freight and passenger rail transport and the manufacture of railway locomotives and rolling stock and includes information on the size and state of the industry, revenues, volumes, transport costs, investment and expansion and turnaround plans. There are profiles of 27 companies including major state-owned players such as PRASA and Transnet, whose businesses include Transnet Freight Rail and Transnet Engineering, Gautrain operator Bombela and locomotives and rolling stock manufacturers such as Alstom and Gibela.

Railway Transport and Manufacture of Locomotives and Rolling Stock in South Africa

The rail industry has been plagued by ageing infrastructure and governance issues. Companies have continued to shift the transport of goods to road as the country’s rail system becomes increasingly unreliable. The plan to open the rail network to private participation has failed to gain traction, with only one successful bidder to date. Theft and vandalism of rail infrastructure is rampant and locomotive availability is a major issue. The loss-making state-owned Passenger Rail Agency of South Africa (PRASA), which is responsible for most passenger rail services in the country, and Transnet Freight Rail (TFR), have been involved in procurement irregularities and irregular, fruitless and wasteful expenditure and poor governance, with ongoing investigations and appearances at the commission of inquiry into state capture.

State of Decline

South Africa's railway industry is in a state of decline, as seen by the decrease in freight and passengers transported by train, with freight volumes the lowest recorded over the past decade, and the downward trend continuing. The dilapidated rail network is forcing more freight onto the country's already overwhelmed and overburdened roads, increasing congestion and damaging infrastructure. The passenger network is even worse than freight, as passenger volumes decreased nearly 90% between 2019 and 2021, and a further 15% in 2022. Criminality, such as theft and vandalism, is the biggest challenge and safety threat to rail infrastructure.

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Railway Transport and Manufacture of Locomotives and Rolling Stock Industry in South Africa 2023

Full Report

R 20 000.00(ZAR) estimated $1054.73 (USD)*

Industry Overview

R 14 000.00(ZAR) estimated $ 738.31 (USD)*

Historical Reports

Railway Transport and Manufacture of Locomotives and Rolling Stock Industry in South Africa 2021-03-12

R 6 500.00(ZAR) estimated $342.79 (USD)*

View Report Add to Cart

Railway Transport and Manufacture of Locomotives and Rolling Stock Industry in South Africa 2019-08-22

R 1 900.00(ZAR) estimated $100.20 (USD)*

View Report Add to Cart

Railway Transport and Manufacture of Locomotives and Rolling Stock Industry in South Africa 2017-07-28

R 1 900.00(ZAR) estimated $100.20 (USD)*

View Report Add to Cart

Railway Transport and Manufacture of Locomotives and Rolling Stock Industry in South Africa 2017-02-23

R 1 900.00(ZAR) estimated $100.20 (USD)*

View Report Add to Cart

Railway Transport and Manufacture of Locomotives and Rolling Stock Industry in South Africa 2015-10-27

R 1 900.00(ZAR) estimated $100.20 (USD)*

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Railway Transport and Manufacture of Locomotives and Rolling Stock Industry in South Africa 2014-10-08

R 1 900.00(ZAR) estimated $100.20 (USD)*

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Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 11
2.2. Geographic Position 15
2.3. Size of the Industry 16
3. LOCAL 28
3.1. State of the Industry 28
3.2. Key Trends 40
3.3. Key Issues 40
3.4. Notable Players 41
3.5. Corporate Actions 44
3.6. Regulations 45
3.7. Enterprise Development and Social Development 50
4. AFRICA 51
5. INTERNATIONAL 58
6. INFLUENCING FACTORS 64
6.1. Unforeseen Events 64
6.2. Economic Environment 65
6.3. Environmental Issues 68
6.4. Technology, R&D, Innovation 70
6.5. Government Support 72
6.6. Operating and Input Costs 73
6.7. Safety and Security 74
6.8. Investment in Rolling Stock and Rail Infrastructure 77
6.9. Localisation and Supplier Development Programmes 82
6.10. Private Sector Open Access and Concessions 85
6.11. Governance and Supply Chain Issues 87
6.12. Mining Sector Issues 89
6.13. Cyclicality 90
7. COMPETITIVE ENVIRONMENT 91
7.1. Competition 91
7.2. Ownership Structure of the Industry 92
7.3. Barriers to Entry 93
8. SWOT ANALYSIS 94
9. OUTLOOK 96
10. INDUSTRY ASSOCIATIONS 97
11. REFERENCES 97
11.1. Publications 97
11.2. Websites 99
APPENDIX 1 101
Summary of Notable Players 101
COMPANY PROFILES 110
ABB South Africa (Pty) Ltd 110
ACTOM (Pty) Ltd 113
African Rail and Traction Services (Pty) Ltd 121
ALSTOM Rolling Stock SA (Pty) Ltd 122
ALSTOM Ubunye (Pty) Ltd 124
Bombela Operating Company (Pty) Ltd 126
Denel Vehicle Systems (Pty) Ltd 128
Galison Manufacturing (Pty) Ltd 130
Gibela Rail Transport Consortium (RF) (Pty) Ltd 132
Global Railway Engineering (Pty) Ltd 134
Ikusasa Rail (Pty) Ltd 136
Knorr-Bremse (South Africa) (Pty) Ltd 138
Lucchini South Africa (Pty) Ltd 140
Passenger Rail Agency of South Africa 142
Progress Rail SA (Pty) Ltd 146
R and H Rail (Pty) Ltd 148
SAFreight Logistics (Pty) Ltd 150
Siemens (Pty) Ltd 152
Siyahamba Engineering (Pty) Ltd 156
Swasap (Pty) Ltd 158
Thelo DB (Pty) Ltd 160
TMH Africa (Pty) Ltd 162
Transnet SOC Ltd 163
Traxtion Sheltam (Pty) Ltd 168
Trident South Africa (Pty) Ltd 171
Versa Rail (Pty) Ltd 173
Wabtec South Africa Technologies (Pty) Ltd 175

Report Coverage

This report focuses on freight and passenger rail transport and the manufacture of railway locomotives and rolling stock. It includes comprehensive information on Transnet, Prasa and Gautrain, including financial performance, infrastructure development and governance and supply chain issues. There are profiles of 31 companies including Transnet and Prasa, suppliers such as Siemens, ABB and Actom and logistics companies such as SAFreight Logistics.

Railway Transport and Manufacture of Locomotives and Rolling Stock in South Africa

The rail industry was plagued by aging infrastructure and governance issues prior to the onset of the coronavirus pandemic. The industry has been further affected by a decrease in rail freight and passenger volumes and revenues due to lockdown restrictions. The poor economy has led to lower production, with less freight to transport, resulting in lower investment in expansion, and reducing the demand for additional rolling stock for freight. The state-owned Passenger Rail Agency of South Africa (Prasa) and Transnet, which dominate the sector, are suffering the effects of the legacy of poor governance and procurement irregularities with ongoing investigations by the Special Investigation Unit and appearances at the commission of inquiry into state capture. Government’s proposed open access to the rail network for private sector investment should enhance competitiveness and promote efficiency in the sector.

Prasa and Transnet

In December 2019, the minister of Transport dismissed Prasa’s interim board and acting CEO and put the company into administration. A permanent board was appointed in October 2020. Prasa’s operational issues include fleets out of service and a train shortage, the deteriorating condition of rolling stock and infrastructure, a decline in the number of trains scheduled, train delays and cancellations. Transnet’s 2020 performance was affected by deteriorating economic conditions reducing the volumes requiring transport by rail, increased security incidents, adverse weather patterns and poor rail network conditions in some key corridors. Its 2021 interim results reflect significant declines in revenue and volumes as a result of the lockdown.

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Railway Transport and Manufacture of Locomotives and Rolling Stock Industry in South Africa 2021

Full Report

R 6 500.00(ZAR) estimated $342.79 (USD)*

Industry Overview

R 4 550.00(ZAR) estimated $ 239.95 (USD)*

Historical Reports

Railway Transport and Manufacture of Locomotives and Rolling Stock Industry in South Africa 2023-03-23

R 20 000.00(ZAR) estimated $1054.73 (USD)*

View Report Add to Cart

Railway Transport and Manufacture of Locomotives and Rolling Stock Industry in South Africa 2019-08-22

R 1 900.00(ZAR) estimated $100.20 (USD)*

View Report Add to Cart

Railway Transport and Manufacture of Locomotives and Rolling Stock Industry in South Africa 2017-07-28

R 1 900.00(ZAR) estimated $100.20 (USD)*

View Report Add to Cart

Railway Transport and Manufacture of Locomotives and Rolling Stock Industry in South Africa 2017-02-23

R 1 900.00(ZAR) estimated $100.20 (USD)*

View Report Add to Cart

Railway Transport and Manufacture of Locomotives and Rolling Stock Industry in South Africa 2015-10-27

R 1 900.00(ZAR) estimated $100.20 (USD)*

View Report Add to Cart

Railway Transport and Manufacture of Locomotives and Rolling Stock Industry in South Africa 2014-10-08

R 1 900.00(ZAR) estimated $100.20 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 6
2.2. Geographic Position 9
3. SIZE OF THE INDUSTRY 12
4. STATE OF THE INDUSTRY 19
4.1. Local: Overview 19
4.1.1. Local: Prasa 20
4.1.2. Local: Gautrain 23
4.1.3. Local: Transnet Freight Rail 25
4.1.4. Corporate Actions 27
4.1.5. Regulations 28
4.1.6. Enterprise Development and Social Economic Development 33
4.2. Continental 36
4.3. International 40
5. INFLUENCING FACTORS 47
5.1. Coronavirus 47
5.2. Economic Environment 50
5.3. Rising Operating and Input Costs 52
5.4. Investment in Rolling Stock and Rail Infrastructure 54
5.5. Private Sector Capacity Expansion Projects 60
5.6. Private Sector Open Access and Concessions 61
5.7. Governance and Supply Chain Issues 62
5.8. Localisation and Supplier Development Programmes 64
5.9. Challenges and Issues Facing the Mining Sector 66
5.10. Technology, Research and Development (R&D) and Innovation 67
5.11. Labour 68
5.12. Crime, Security and Safety 72
5.13. Cyclicality 75
5.14. Environmental Issues 75
6. COMPETITION 77
6.1. Barriers to Entry 78
7. SWOT ANALYSIS 78
8. OUTLOOK 80
9. INDUSTRY ASSOCIATIONS 81
10. REFERENCES 82
10.1. Publications 82
10.2. Websites 84
APPENDIX 1 86
Transnet Freight Rail Business Units: Commodities and Critical Train Flows 86
APPENDIX 2 89
Summary of Notable players 89
APPENDIX 3 98
Current and Future Passenger and Freight Rail Related Projects on the African Continent 98
APPENDIX 4 105
Suppliers to the Rail Manufacturing Industry 105
APPENDIX 5 112
Localisation and Supplier Development Initiatives and Incentives 112
COMPANY PROFILES 115
ABB SOUTH AFRICA (PTY) LTD 115
ACTOM (PTY) LTD 118
AFRICAN RAIL AND TRACTION SERVICES (PTY) LTD 126
ALSTOM UBUNYE (PTY) LTD 127
BOMBARDIER TRANSPORTATION SOUTH AFRICA (PTY) LTD 129
BOMBELA OPERATING COMPANY (PTY) LTD 131
CRRC E-LOCO SUPPLY (PTY) LTD 133
CRRC SA ROLLING STOCK (PTY) LTD 135
DENEL VEHICLE SYSTEMS (PTY) LTD 137
ETION LTD 140
GALISON MANUFACTURING (PTY) LTD 144
GIBELA RAIL TRANSPORT CONSORTIUM (RF) (PTY) LTD 146
GLOBAL RAILWAY ENGINEERING (PTY) LTD 149
IKUSASA RAIL (PTY) LTD 151
KNORR-BREMSE (SOUTH AFRICA) (PTY) LTD 153
LUCCHINI SOUTH AFRICA (PTY) LTD 155
PASSENGER RAIL AGENCY OF SOUTH AFRICA 157
PROGRESS RAIL SA (PTY) LTD 161
R AND H RAIL (PTY) LTD 163
SAFREIGHT LOGISTICS (PTY) LTD 165
SIEMENS (PTY) LTD 167
SIYAHAMBA ENGINEERING (PTY) LTD 171
SWASAP (PTY) LTD 173
THELO DB (PTY) LTD 175
TMH AFRICA (PTY) LTD 176
TRANSNET SOC LTD 177
TRAXTION SHELTAM (PTY) LTD 182
TRIDENT SOUTH AFRICA (PTY) LTD 185
VERSA RAIL (PTY) LTD 187
WABTEC SOUTH AFRICA TECHNOLOGIES (PTY) LTD 189
WICTRA HOLDINGS (PTY) LTD 191

Report Coverage

This report focuses on freight and passenger rail transport and the manufacture of railway locomotives and rolling stock and includes comprehensive information on the state and size of the industry, volumes and tonnages, investment in rolling stock and infrastructure and significant projects and corporate actions in South Africa, on the continent and internationally. There are 31 company profiles including Transnet, Prasa and Bombela Operating Company, which operates Gautrain. Other profiled companies include Traxtion Sheltam which provides services to the coal mining, ferrochrome, gold mining and paper and pulp industries and African Rail and Traction Services, part of the Surtees Rail Group, which operates and controls rail systems.

Railway Transport and Manufacture of Locomotives and Rolling Stock

Freight and passenger rail transport and the manufacture of railway locomotives and rolling stock in South Africa is dominated by Transnet, the Passenger Rail Agency of South Africa (Prasa) and Gautrain, all of which are feeling the effects of the poor economy on passenger numbers, freight volumes and costs. Additionally, Transnet and Prasa have been directly linked to allegations of state capture and various corporate governance contraventions and wrongful activities including the award of multi-billion-rand contracts.

Recovery Plan

The proposed National Rail Policy plans to stimulate a renaissance in the South African railway sector by introducing remedial infrastructural investment and institutional interventions to position rail as the backbone of the national transport sector. About 42% of the more than R750bn investment in infrastructure projects to 2050 in terms of the National Transport Master Plan is earmarked for the rail sector. Proposed capital expenditure and expansion projects of Transnet, Prasa and Gautrain are expected to lead this revival. Gautrain plans to extend its route while Prasa plans to arrest its decline and return to stability, while renewing its rolling stock. Transnet’s strategy is based on the digitisation and integration of all elements in the value chain.

Read More..
Railway Transport and Manufacture of Locomotives and Rolling Stock Industry in South Africa 2019

Full Report

R 1 900.00(ZAR) estimated $100.20 (USD)*

Industry Overview

R 1 330.00(ZAR) estimated $ 70.14 (USD)*

Historical Reports

Railway Transport and Manufacture of Locomotives and Rolling Stock Industry in South Africa 2023-03-23

R 20 000.00(ZAR) estimated $1054.73 (USD)*

View Report Add to Cart

Railway Transport and Manufacture of Locomotives and Rolling Stock Industry in South Africa 2021-03-12

R 6 500.00(ZAR) estimated $342.79 (USD)*

View Report Add to Cart

Railway Transport and Manufacture of Locomotives and Rolling Stock Industry in South Africa 2017-07-28

R 1 900.00(ZAR) estimated $100.20 (USD)*

View Report Add to Cart

Railway Transport and Manufacture of Locomotives and Rolling Stock Industry in South Africa 2017-02-23

R 1 900.00(ZAR) estimated $100.20 (USD)*

View Report Add to Cart

Railway Transport and Manufacture of Locomotives and Rolling Stock Industry in South Africa 2015-10-27

R 1 900.00(ZAR) estimated $100.20 (USD)*

View Report Add to Cart

Railway Transport and Manufacture of Locomotives and Rolling Stock Industry in South Africa 2014-10-08

R 1 900.00(ZAR) estimated $100.20 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 7
2.2. Geographic Position 9
3. SIZE OF THE INDUSTRY 11
4. STATE OF THE INDUSTRY 17
4.1. Local 17
4.1.1. Corporate Actions 26
4.1.2. Regulations 31
4.1.3. Enterprise Development and Social Economic Development 36
4.2. Continental 40
4.3. International 48
5. INFLUENCING FACTORS 55
5.1. Economic Environment 55
5.2. Rising Operating Costs 57
5.3. Investment in Rolling Stock and Rail Infrastructure 60
5.4. Governance and Supply Chain Issues 67
5.5. Localisation Requirements and Supplier Development Programmes 70
5.6. Movement from Road to Rail 71
5.7. Challenges and Issues facing the Mining Industry 74
5.8. Technology, Research and Development (R&D) and Innovation 75
5.9. Labour 78
5.10. Environmental Issues 84
5.11. Cyclicality 85
5.12. Crime, Safety and Security 86
6. COMPETITION 89
6.1. Barriers to Entry 91
7. SWOT ANALYSIS 91
8. OUTLOOK 93
9. INDUSTRY ASSOCIATIONS 94
10. REFERENCES 95
10.1. Publications 95
10.2. Websites 97
APPENDIX 1 99
Notable Players in the Rail Sector 99
APPENDIX 2 107
Transnet Freight Rail Business Units: Commodities and Critical Train Flows 107
APPENDIX 3 110
Prasa Medium Term Capital Expenditure Programme 2019/20 to 2021/22 110
APPENDIX 4 111
Suppliers to the Rail Manufacturing Industry 111
Appendix 5 120
Current Localisation and Supplier Development Initiatives and Incentives 120
COMPANY PROFILES 129
ABB SOUTH AFRICA (PTY) LTD 129
ACTOM (PTY) LTD 132
AFRICAN RAIL AND TRACTION SERVICES (PTY) LTD 140
ALSTOM UBUNYE (PTY) LTD 142
BOMBARDIER TRANSPORTATION SOUTH AFRICA (PTY) LTD 144
BOMBELA OPERATING COMPANY (PTY) LTD 146
CRRC E-LOCO SUPPLY (PTY) LTD 148
CRRC SA ROLLING STOCK (PTY) LTD 150
DENEL VEHICLE SYSTEMS (PTY) LTD 152
ETION LTD 155
GALISON MANUFACTURING (PTY) LTD 159
GE SOUTH AFRICA TECHNOLOGIES (PTY) LTD 161
GIBELA RAIL TRANSPORT CONSORTIUM (RF) (PTY) LTD 163
GLOBAL RAILWAY ENGINEERING (PTY) LTD 166
IKUSASA RAIL (PTY) LTD 168
KNORR-BREMSE (SOUTH AFRICA) (PTY) LTD 170
LUCCHINI SOUTH AFRICA (PTY) LTD 172
MEHLEKETO RESOURCING (PTY) LTD 174
PASSENGER RAIL AGENCY OF SOUTH AFRICA 176
PROGRESS RAIL SA (PTY) LTD 179
R AND H RAIL (PTY) LTD 181
SAFREIGHT LOGISTICS (PTY) LTD 183
SIEMENS (PTY) LTD 185
SIYAHAMBA ENGINEERING (PTY) LTD 189
SWASAP (PTY) LTD 192
TMH AFRICA (PTY) LTD 194
TRANSNET SOC LTD 195
TRAXTION SHELTAM (PTY) LTD 200
TRIDENT SOUTH AFRICA (PTY) LTD 203
VERSA RAIL (PTY) LTD 205
WICTRA HOLDINGS (PTY) LTD 207

Report Coverage

As well as covering passenger and freight transportation by rail, the detailed report on the South African rail sector includes information on the manufacture of concrete railway sleepers and turnouts. The report profiles the two state-owned entities, PRASA and Transnet, as well as four other role players in the railway transport sector.

Railway Transport

South Africa’s current rail network is the eleventh-largest in the world at 22,387 route-km or 30,400 track-km. It comprises 12,801km of national network, 7,278km of branch lines and 2,228km of narrow gauge urban network, as well as 80km of standard gauge regional rapid transit network. The Department of Transport regulates all transportation in the country and shares its responsibility for both passenger and freight infrastructure and operations with the Passenger Rail Agency of South Africa (PRASA), the Rail Safety Regulator (RSR) and Transnet SOC Ltd. The Department of Transport has oversight over PRASA and RSR, while Transnet, a state-owned company, falls under the Department of Public Enterprises. The Gauteng Provincial Government, through the Gautrain Management Agency (GMA), is the owner of the R27bn Gautrain system.

Revitalising the Rail Sector

The proposed National Rail Policy plans to stimulate a renaissance in the South African railway sector by introducing remedial infrastructural investment plus institutional interventions to position rail as the backbone of the national transport sector. Total capital expenditure by Transnet in the 2016 financial year reached R34bn with R11.1bn spent on the expansion of infrastructure and equipment and R18.5bn spent on maintaining capacity in the rail and ports divisions. For the 2017/2018 fiscal year the Minister of Transport allocated R19bn. The major revitalisation investment will entail the conversion of an outdated Cape gauge network to a standard gauge high-performance national rail network and the provision of sufficient capacity for heavy haul and general freight services, as well as for regional rapid transit and long-distance passenger services.

Read More..
Railway Transport and Manufacture of Locomotives and Rolling Stock Industry in South Africa 2017

Full Report

R 1 900.00(ZAR) estimated $100.20 (USD)*

Industry Overview

R 1 330.00(ZAR) estimated $ 70.14 (USD)*

Historical Reports

Railway Transport and Manufacture of Locomotives and Rolling Stock Industry in South Africa 2023-03-23

R 20 000.00(ZAR) estimated $1054.73 (USD)*

View Report Add to Cart

Railway Transport and Manufacture of Locomotives and Rolling Stock Industry in South Africa 2021-03-12

R 6 500.00(ZAR) estimated $342.79 (USD)*

View Report Add to Cart

Railway Transport and Manufacture of Locomotives and Rolling Stock Industry in South Africa 2019-08-22

R 1 900.00(ZAR) estimated $100.20 (USD)*

View Report Add to Cart

Railway Transport and Manufacture of Locomotives and Rolling Stock Industry in South Africa 2017-02-23

R 1 900.00(ZAR) estimated $100.20 (USD)*

View Report Add to Cart

Railway Transport and Manufacture of Locomotives and Rolling Stock Industry in South Africa 2015-10-27

R 1 900.00(ZAR) estimated $100.20 (USD)*

View Report Add to Cart

Railway Transport and Manufacture of Locomotives and Rolling Stock Industry in South Africa 2014-10-08

R 1 900.00(ZAR) estimated $100.20 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 6
2.2. Geographic Position 7
3. SIZE OF THE INDUSTRY 9
4. STATE OF THE INDUSTRY 15
4.1. Local 15
4.1.1. Corporate Actions 22
4.1.2. Regulations 22
4.1.3. Enterprise Development and Social Economic Development 25
4.2. Continental 28
4.3. International 30
5. INFLUENCING FACTORS 31
5.1. National Rail Policy – Draft White Paper 31
5.2. Economic Environment 33
5.3. Rising Operating Costs 33
5.4. Investment in Rolling Stock and Rail Infrastructure 35
5.5. Supply Chain Issues 44
5.6. The Movement from Road to Rail 45
5.7. Private Sector Participation (PSP) 48
5.8. Challenges and Issues Facing the Mining Industry 49
5.9. Technology, Research & Development (R&D) and Innovation 50
5.10. Labour 52
5.11. Cyclicality 55
5.12. Environmental Concerns 56
5.13. Crime, Safety and Security 56
6. COMPETITION 58
6.1. Barriers to Entry 60
7. SWOT ANALYSIS 60
8. OUTLOOK 61
9. INDUSTRY ASSOCIATIONS 62
10. REFERENCES 62
10.1. Publications 62
10.2. Websites 64
APPENDIX 1 65
Railway operators who applied for a railway safety permit during the period 2016/17, in accordance with the Railway Safety Regulator Act 65
APPENDIX 2 71
Transnet Freight Rail Business Units: Commodities and Critical Train Flows 71
APPENDIX 3 74
Examples of Current and Future Rail-Related Projects on the African Continent 74
APPENDIX 4 77
PRASA Capital Expenditure Programme MTEF 2017-2020 77
APPENDIX 5 78
Overview of the Manufacture of Concrete Sleepers and Turnouts 78
COMPANY PROFILES 87
BOMBELA OPERATING COMPANY (PTY) LTD 87
GRINDROD CORRIDOR MANAGEMENT (PTY) LTD 89
GRINDROD RAIL OPERATIONS (PTY) LTD 91
PASSENGER RAIL AGENCY OF SOUTH AFRICA 93
SAFREIGHT LOGISTICS (PTY) LTD 96
TRANSNET SOC LTD 98

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.

Read More..
Railway Transport and Manufacture of Locomotives and Rolling Stock Industry in South Africa 2017

Full Report

R 1 900.00(ZAR) estimated $100.20 (USD)*

Industry Overview

R 1 330.00(ZAR) estimated $ 70.14 (USD)*

Historical Reports

Railway Transport and Manufacture of Locomotives and Rolling Stock Industry in South Africa 2023-03-23

R 20 000.00(ZAR) estimated $1054.73 (USD)*

View Report Add to Cart

Railway Transport and Manufacture of Locomotives and Rolling Stock Industry in South Africa 2021-03-12

R 6 500.00(ZAR) estimated $342.79 (USD)*

View Report Add to Cart

Railway Transport and Manufacture of Locomotives and Rolling Stock Industry in South Africa 2019-08-22

R 1 900.00(ZAR) estimated $100.20 (USD)*

View Report Add to Cart

Railway Transport and Manufacture of Locomotives and Rolling Stock Industry in South Africa 2017-07-28

R 1 900.00(ZAR) estimated $100.20 (USD)*

View Report Add to Cart

Railway Transport and Manufacture of Locomotives and Rolling Stock Industry in South Africa 2015-10-27

R 1 900.00(ZAR) estimated $100.20 (USD)*

View Report Add to Cart

Railway Transport and Manufacture of Locomotives and Rolling Stock Industry in South Africa 2014-10-08

R 1 900.00(ZAR) estimated $100.20 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
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

Report Coverage

The report on the South African Railway sector focuses on the current state of the sector, developments within the sector and factors influencing the success of the industry. The report profiles seven companies including the two state-owned enterprises as well as independent entities, Bombela Operating Company (Pty) Ltd, the operator and maintainer of the Gautrain and Grindrod Rail Operations (Pty) Ltd, which has a fleet of 65 locomotives.

Railway Transport

This report covers passenger and freight transportation by rail, sectors characterised by decades of ageing infrastructure, poor maintenance and lack of investment. During the past few years low economic growth, the drop in commodity prices, low manufacturing and mining output and electricity constraints, have all had a negative effect on Transnet Freight Rail’s freight rail volumes. PRASA’s Mainline Passenger Services have also seen dwindling numbers with statistics for 2013/14 showing 1 million passengers were carried on long distance services compared to 3 million in 2009/10.

Investment Programmes

PRASA and Transnet are implementing huge capital investment programmes to revitalise the rail industry and to create rail capacity ahead of expected demand, to enable a shift of traffic from road to rail. The passenger division will implement a R123.5bn Rolling Stock Renewal Programme supported by programmes to increase capacity and upgrade stations and national signalling systems while Transnet’s Market Demand Strategy will invest R336.6bn on capital projects over a seven-year period.

Enabling Legislation

Strategic investment-led policy interventions aligned to the Government’s National Development Plan are being introduced to support the revitalisation of the railway industry. Government has already published the Green Paper on National Rail Policy for comment and a Single Transport Economic Regulator (STER) to address the regulatory shortcomings across the transport sector has been proposed. Meanwhile the Department of Transport plans to develop and implement the Private Sector Participation (PSP) Framework for ports and freight rail.

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Railway Transport and Manufacture of Locomotives and Rolling Stock Industry in South Africa 2015

Full Report

R 1 900.00(ZAR) estimated $100.20 (USD)*

Industry Overview

R 1 330.00(ZAR) estimated $ 70.14 (USD)*

Historical Reports

Railway Transport and Manufacture of Locomotives and Rolling Stock Industry in South Africa 2023-03-23

R 20 000.00(ZAR) estimated $1054.73 (USD)*

View Report Add to Cart

Railway Transport and Manufacture of Locomotives and Rolling Stock Industry in South Africa 2021-03-12

R 6 500.00(ZAR) estimated $342.79 (USD)*

View Report Add to Cart

Railway Transport and Manufacture of Locomotives and Rolling Stock Industry in South Africa 2019-08-22

R 1 900.00(ZAR) estimated $100.20 (USD)*

View Report Add to Cart

Railway Transport and Manufacture of Locomotives and Rolling Stock Industry in South Africa 2017-07-28

R 1 900.00(ZAR) estimated $100.20 (USD)*

View Report Add to Cart

Railway Transport and Manufacture of Locomotives and Rolling Stock Industry in South Africa 2017-02-23

R 1 900.00(ZAR) estimated $100.20 (USD)*

View Report Add to Cart

Railway Transport and Manufacture of Locomotives and Rolling Stock Industry in South Africa 2014-10-08

R 1 900.00(ZAR) estimated $100.20 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Supply Chain 5
2.2. Geographic Position 6
3. SIZE OF THE INDUSTRY 9
3.1. Passenger Rail Services: PRASA 10
3.2. Passenger Rail Services: Gautrain 11
3.3. Freight Rail Services 11
4. STATE OF THE INDUSTRY 16
4.1. Local 16
4.1.1. Passenger Rail Services 18
4.1.2. Passenger Rail Services: Gautrain 20
4.1.3. Freight Rail Services 21
4.1.4. Corporate Actions 24
4.1.5. Regulations and Government Programmes 24
4.1.6. Enterprise Development and Social Economic Development 27
4.2. Continental 30
4.2.1. Passenger Rail Services 31
4.2.2. Freight Rail Services 31
4.3. International 33
5. INFLUENCING FACTORS 35
5.1. Green Paper on National Rail Policy 35
5.2. Improved Regulatory Oversight 36
5.3. Investment in Rolling Stock and Rail Infrastructure 37
5.4. The Movement from Road to Rail 44
5.5. Private Sector Participation (PSP) 47
5.6. Economic Environment 49
5.7. Challenges and Issues Facing the Mining Industry 51
5.8. Rising Operating Costs 53
5.9. Technology, Research and Development (R&D) and Innovation 54
5.10. Labour 57
5.11. Cyclicality 61
5.12. Environmental Concerns 62
5.13. Safety and Security 64
5.14. Electricity Supply Constraints 66
5.15. Government Initiatives 67
6. COMPETITION 68
6.1. Barriers to Entry 70
7. SWOT ANALYSIS 71
8. OUTLOOK 72
9. INDUSTRY ASSOCIATIONS 73
10. REFERENCES 73
10.1. Publications 73
10.2. Websites 75
APPENDIX 1 77
Rail Operators Excluding PRASA, TFR and Gautrain 77
APPENDIX 2 83
Transnet Freight Rail Business Units: Commodities and Critical Train Flows 83
APPENDIX 3 86
Current and Future Rail-Related Projects on African Continent 86
APPENDIX 4 89
TETA: Rail Sector Scarce Skills 89
COMPANY PROFILES 91
African Rail and Traction Services (Pty) Ltd 91
Bombela Operating Company (Pty) Ltd 93
Grindrod Corridor Management (Pty) Ltd 95
Grindrod Rail Operations (Pty) Ltd 97
Passenger Rail Agency of South Africa 99
SAFreight Logistics (Pty) Ltd 103
Transnet SOC Ltd 105

Extract

Massive investment in railway networks and infrastructure on the African continent will increase the demand for locomotives and rolling stock...

Description

This report focuses on the manufacture of railway locomotives and rolling stock. The industry is driven by the collective investments, valued at more than R430bn, of Transnet and the Passenger Rail Agency of South Africa (PRASA).

Railway Transport and Manufacture of Locomotives and Rolling Stock Industry in South Africa 2014

Full Report

R 1 900.00(ZAR) estimated $100.20 (USD)*

Industry Overview

R 1 330.00(ZAR) estimated $ 70.14 (USD)*

Historical Reports

Railway Transport and Manufacture of Locomotives and Rolling Stock Industry in South Africa 2023-03-23

R 20 000.00(ZAR) estimated $1054.73 (USD)*

View Report Add to Cart

Railway Transport and Manufacture of Locomotives and Rolling Stock Industry in South Africa 2021-03-12

R 6 500.00(ZAR) estimated $342.79 (USD)*

View Report Add to Cart

Railway Transport and Manufacture of Locomotives and Rolling Stock Industry in South Africa 2019-08-22

R 1 900.00(ZAR) estimated $100.20 (USD)*

View Report Add to Cart

Railway Transport and Manufacture of Locomotives and Rolling Stock Industry in South Africa 2017-07-28

R 1 900.00(ZAR) estimated $100.20 (USD)*

View Report Add to Cart

Railway Transport and Manufacture of Locomotives and Rolling Stock Industry in South Africa 2017-02-23

R 1 900.00(ZAR) estimated $100.20 (USD)*

View Report Add to Cart

Railway Transport and Manufacture of Locomotives and Rolling Stock Industry in South Africa 2015-10-27

R 1 900.00(ZAR) estimated $100.20 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Supply Chain 2
2.2. Geographic Position 3
3. SIZE OF THE INDUSTRY 3
4. STATE OF THE INDUSTRY 9
4.1. Local 9
4.1.1. Corporate Actions 12
4.1.2. Regulations and Policy 12
4.1.3. Enterprise Development and Social Economic Development 14
4.2. Continental 16
4.3. International 17
5. INFLUENCING FACTORS 20
5.1. Revitalisation of the Domestic Rail Industry 20
5.2. Localisation Requirements 20
5.3. Supplier Development 21
5.4. Economic Environment 22
5.5. State and Competitiveness of the Manufacturing Sector 23
5.6. Rising Operating Costs 24
5.7. Labour 25
5.7.1. General 25
5.7.2. Unions 25
5.7.3. Skills and Training 26
5.8. Technology 27
5.9. Environmental Concerns 28
5.10. Cyclicality 28
6. COMPETITION 28
6.1. Barriers to Entry 29
6.2. Research and Development (R&D) and Innovation 29
7. SWOT ANALYSIS 29
8. OUTLOOK 30
9. INDUSTRY ASSOCIATIONS 31
10. REFERENCES 31
10.1. Publications 31
10.2. Websites 32
APPENDIX 1 34
Suppliers to the Rail Manufacturing Industry 34
APPENDIX 2 41
Focus Areas for Local Content 41
APPENDIX 3 42
Current Supplier Development Initiatives 42
ORGANOGRAM 47
COMPANY PROFILES 49
ABB SOUTH AFRICA (PTY) LTD 49
ACTOM (PTY) LTD 52
ANSYS LTD 59
ARUP (PTY) LTD 61
AVENG LTD 63
BAE SYSTEMS - LAND SYSTEMS SOUTH AFRICA (PTY) LTD 67
BOMBARDIER TRANSPORTATION SOUTH AFRICA (PTY) LTD 69
CNR ROLLING STOCK SOUTH AFRICA (PTY) LTD 71
CSR E-LOCO SUPPLY (PTY) LTD 72
DCD GROUP (PTY) LTD 73
GE SOUTH AFRICA TECHNOLOGIES (PTY) LTD 76
GIBELA RAIL TRANSPORT CONSORTIUM (RF) (PTY) LTD 77
GRINDROD LOCOMOTIVES (PTY) LTD 79
GRINDROD RAIL CONSTRUCTION COMPANY LTD 81
IMBANI HOLDINGS (PTY) LTD 83
KNORR-BREMSE (SOUTH AFRICA) (PTY) LTD 85
MEHLEKETO RESOURCING (PTY) LTD 86
OPICONSIVIA INVESTMENTS 265 (PTY) LTD 87
R&H RAIL (PTY) LTD 88
RRL GRINDROD (PTY) LTD 89
SAFREIGHT LOGISTICS (PTY) LTD 90
SIYAHAMBA ENGINEERING (PTY) LTD 92
SWASAP (PTY) LTD 94
TRANSNET SOC LTD 96
TRIDENT SOUTH AFRICA (PTY) LTD 99
VENUS RAILWAY SOLUTIONS (PTY) LTD 101
WICTRA HOLDINGS (PTY) LTD 102