Khulu Phasiwe, Public Policy Correspondent
29 April 2004
Johannesburg — ELECTRICAL engineering and electronics company Siemens Southern Africa said yesterday it was confident of winning a portion of the R15bn tender to refurbish Spoornet's locomotives and wagons.
The coveted fleet renewal tender the largest freight railway contract to be issued in Africa has reportedly attracted several international rolling stock manufacturers, like Alstom and Bombadier.
Engineering group Murray & Roberts which, like Siemens Southern Africa, had previously done refurbishment work for Spoornet and the South African Rail Commuter Corporation (SARCC) is also believed to have submitted its tender with various original equipment manufacturers.
The fleet-renewal programme, which includes outright purchase of new locomotives and wagons and the upgrade of existing ones, is aimed at addressing capacity constraints that have recently hampered Spoornet's efficiency.
Gorman Zimba, Siemens Southern Africa's divisional MD for transportation systems, said the company was "very hungry to take this kind of work".
Siemens said it would partner with Transwerk, a Transnet rolling stock maintenance business unit, if it won the tender.
Transwerk's existing infrastructure and expertise would ensure an immediate launch of the fleet renewal programme without further delays.
The move would also eliminate costs of establishing a new repair facility.
"Too much time has been wasted already," Zimba said.
Siemens executive director Koos Smit said the company had secured financial backing, allowing it to start the upgrade as soon as the tender was awarded.
"A consortium led by Standard Bank, Commerzbank and KFW have made three distinct financial offers that do not require government guarantees and cover 100% total order value financing," said Smit.
"These include a German finance scheme and a local and German finance lease structured by Siemens Financial Services."
He said financial institutions had set aside R1,7bn for the initial phase of the Spoornet's fleet renewal programme.
Spoornet's parent company Transnet confirmed the tender "is in the process of being adjudicated".
Smit said Siemens was also "very interested" in the electricity generation market, which is expected to face supply shortages in 2007.
Government has said it would invite independent power producers to build new power stations as part of its strategy to liberalise the market dominated by state-owned power utility Eskom.
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