It is not every day that forty-six Cape-gauge locomotives in great condition become available at the same time. For Traxtion, this was an opportunity that could not be passed up.
In this Coffee with the Editor, Railways Africa Editor Phillippa Dean speaks with Traxtion CEO James Holley about the R3.4 billion rolling-stock investment, considered the single largest investment made by a private rail operator in South Africa.
Holley explains the policy foundations behind the investment, including confidence in the National Rail Policy and the progress of the interim economic regulator. He also touches on the additional investment already developed and awaiting announcement, which is premised on the content of the soon-to-be-released Version 4 of the network statement by Transnet
The locomotives will undergo modernisation at Traxtion’s Rosslyn facility, where Holley notes that 79 percent of orders will be placed with South African companies, equating to roughly 60 percent local content. The project will drive approximately R207 million in downstream procurement into the domestic supply chain, in addition to around R1.6 billion for wagon procurement. The company will employ 662 people to support the project, most of whom will be trained through Traxtion’s training centre.
Holley discusses procurement of around 920 wagons, benchmarking across local and international suppliers and the competitiveness of South Africa’s manufacturing capability.
With an estimated 85 to 90 million tonnes of unmet freight demand in South Africa, Holley reflects on how this investment contributes to addressing that gap and Traxtion’s plans to continue supporting regional markets across the continent.
If you missed the original announcement, premium subscribers can get it here: https://www.railwaysafrica.com/news/traxtion-confirms-r3-4bn-rolling-stock-investment-to-unlock-rail-capacity-and-jobs
Watch the full discussion for clarity, context and insight into one of the most consequential private rail investments South Africa has seen.
