adminGE was considering extending its relationship with TRE beyond the scope of their existing relationship to secure new business in the region. “Sub-Saharan Africa is an important region for us as rail continues to be enhanced and infrastructure is developed,” Mr Simonelli said in an interview yesterday. He is visiting SA to monitor progress on GE’s localisation programme under its contract to build 143 diesel locomotives for Transnet Rail.
TRE had held initial discussions with Queensland National Rail in Australia over the possible supply of GE locomotives that are being manufactured at Koedoespoort near Pretoria,
TRE CEO Richard Vallihu said. The demand was mainly from the coal-mining companies, which used narrow-gauge railways to move the coal in that country.
TRE was also looking to supply narrow-gauge, also known as Cape gauge, locomotives to Nigeria, Mr Vallihu said.
GE was working with TRE to manufacture diesel locomotives as part of the government’s competitive supplier development programme, which the state hopes will revitalise the
country’s industrial sector by stimulating demand.
GE had undertaken to have as much as 65 percent of the locomotives manufactured in SA. Work on 54 locomotives had already been completed under the programme. Mr Vallihu
said the proportion of local content was climbing as TRE’s logistics and supplier base deepened.
TRE was upgrading its plant and technology for the company to assemble the modern AC traction motors used in the Class 43 locomotives GE is selling to Transnet.
“The technology is very modern and we have sent 140 people abroad to GE facilities all over the world to (become) knowledgeable about the technologies,” Mr Vallihu said.
Koedoespoort would be able to assemble these components within the next 12 to 18 months, he said.
TRE had completed its refurbishment programme on GE locomotives in Namibia and Botswana and was upgrading Class 33 locomotives with new technology to extend their operating lives, Mr Vallihu said.
“These locos are already 35 years old. We upgrade them; clear the deck and put in modern components, extend their lives by another 15 to 20 years,” he said.
GE did not have manufacturing facilities in Africa, Mr Simonelli said. “TRE has a lot of capabilities and has proven to be a very good partner.”
Asked how the two may choose to co-operate on future contracts, Mr Simonelli said a joint venture was “one potential way for us to work together”.
He said: “There is no doubt the scale of the market in SA and Africa is important to us and the expansion plans that are laid out make it an important place for us to be in.” — Businessday.
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