Pretoria - Acting Performance Monitoring and Evaluation Minister Angie Motshekga says Cabinet is pleased with the awarding of a R50-billion contract by Transnet for the building of 1 064 locomotives.
“Cabinet is pleased with the move to revitalise South Africa’s rail system, with the awarding of a R50-billion contract by Transnet for the building of 1 064 modern and technologically advanced locomotives.
“Transnet Engineering’s role in the agreement is to ensure that the division is transformed into a global, original equipment manufacturer over time,” she said, while addressing reporters on the outcomes of the Cabinet meeting on Thursday.
The transaction is intended to transform the South African rail industry by growing existing small businesses and creating new ones.
On Monday, Transnet Group Chief Executive Brian Molefe announced four original global equipment manufacturers, including Chinese company CSR Zhuzhou Electric Locomotive and Bombardier South Africa, which will supply 599 electric locomotives.
The other two companies, which will build and supply 465 diesel locomotives, are General Electric South Africa Technologies and CNR Rolling Stock South Africa.
The multi-billion rand acquisition is South Africa’s single biggest infrastructure investment initiative by a corporate. - SAnews.gov.za
