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Representatives from China's CSR Zhuzhou Electric Locomotive and South Africa's Transnet group sign electric locomotive procurement contract. By Li Jianguo
Chinese companies, CSR Zhuzhou Electric Locomotive and CNR Rolling Stock SA, have won $3-billion locomotives contracts in a Rand 50 billion (about $4.7 billion) locomotive procurement contract from Transnet Group in South Africa. The signing ceremony was held between Transnet and the successful bidders in Johannesburg, South Africa on March 17, 2014.
Transnet, a large South African rail, port and pipeline company, headquartered in Johannesburg, awarded the contract to the two Chinese groups and two North American railway groups for the building of 1,064 electric and diesel locomotives.
Chinese groups CSR Zhuzhou Electric Locomotive and CNR Rolling Stock SA and their partners will manufacture about 60 percent of the locomotives, in what Transnet said is the largest ever locomotive supply contract in South Africa's history.
CSR Zhuzhou Electric Locomotive will supply 459 electric locomotives, while CNR Rolling Stock SA will provide 232 diesel locomotives. Bombardier Transportation SA and General Electric SA Technologies will provide the remainder.
"This marks a significant milestone in (Transnet's) history together with substantial socioeconomic benefits for South Africa," Transnet CEO Brian Molefe said.
Molefe said the transaction would create 30,000 jobs in total, while substantially reducing freight pressure on South African roads.
President and CEO of CSR Zhuzhou Electric Locomotive Zhou Qinghe said that the project can greatly help improve the efficiency of railway system and electricity use in South Africa.
According to contracts, more than 60 percent of the projects will be localized, and this will significantly benefit South African manufacturing, providing technology transfer, high level technical skills, and on-the-job training. Zhou said that CSR Zhuzhou Electric Locomotive has already built production base in South Africa, as well as in Malaysia and Turkey.
This was the second time CSR Zhuzhou Electric Locomotive won Transnet projects. In October 2012, the company won the contract of 95 electric locomotives from Transnet.
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