NEW STOCK FOR SA PASSENGER RAIL

Posted on 10 July 2009 by Railways Africa Editor

coach-invest

According to Passenger Rail Agency of South Africa (Prasa) CEO Tshepo Lucky Montana, governmental approval sought for a proposed R80 billion new rolling stock programme may be given during 2009. It will involve the constriction of 6,800 new commuter coaches for Metrorail. “I really hope it can happen this year, as the lead time on procuring new rolling stock is three years, and we can’t really wait any longer,” Montana was quoted saying. He sees South Africa needing between 560 and 600 new coaches every year for the next ten to twelve years. This would allow for increased passenger numbers, with growth presently estimated at about 8% annually.

The current three-year medium-term framework coach refurbishment project, worth some R7 billion, is sufficient only to cater for present passenger demand, Montana explained to Engineering News: “The project is buying us time, but it is not a long-term solution.” He regards the current economic downturn as the ideal time to implement new capacity plans. “If we use this time, we won’t have overcrowding when the upswing happens. I hope government shares this view, and regards this programme as extremely important. We can’t postpone any further,” he told the magazine.  Engineering News comments: “Metrorail currently refurbishes around 700 coaches a year, up from 180 coaches three years ago. It quotes Montana saying that: ‘Once government gives the formal stamp, we will invite bidders to tender for the project. We envisage that this will not be a sole Prasa project, but that the National Treasury will also be involved.’   “There would, no doubt, be some strings attached for the winning bidders, particularly given government’s stated intention of building industrial capacity around infrastructure developments. Hesitant to discuss details before the issuance of the tender, Montana confirmed that the aim would probably be to limit the imported component, and to build capacity and skills to manufacture the rolling stock locally: ‘We have taken the decision not to destroy our local industry. However, we urge industry to use the refurbishment programme to become more competitive. We can’t act in a protectionist fashion. We have certain World Trade Organisation obligations.’  “Partnerships between local and international companies might be promoted,” Engineering News concludes, “especially given the magnitude of the proposed recapitalisation tender.”