15 August 2012

South Africa: TRE's New Manufacturing Facility Boosts Prasa's Fleet Renewal Plans

According to the International Rail Journal, Transnet Rail Engineering (TRE) is planning to build a new factory to assemble commuter trains for Passenger Rail Agency of South Africa (Prasa), a significant boost for South Africa's rolling stock manufacturing capability.

In April, Prasa launched a R123.5bn fleet renewal programme aimed to acquire up to 7224 new vehicles over the next 20 years.

Prasa CEO Lucky Montana said the plan for TRE to carry the burden of the investment in manufacturing capacity - which could be as high as R4bn - is in lime with the government's Preferential Procurement Policy Framework Act, which aims to bring new rigour to state spending and foster domestic rolling stock manufacturing.

However, the International Rail Journal reports that manufacturers warned Prasa that socioeconomic imperatives in the tender, - which include job creation, skills development and local content, would drive up the cost of the vehicles.

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