Transnet is on track to take delivery of the 95 electric locomotives it bought from China South Railway, within the agreed time frames.

Transnet awarded the contract for the supply of 95 electric locomotives to CSR in October 2012. The two parties agreed on a tight delivery schedule with the first batch of locomotives (10 of the 95) due for delivery, as was stated in October last year, in December 2013. The first 10 locomotives will be commissioned by March 2014 following endurance tests to determine readiness for operations.

Crucially, the remainder (ie 85 locomotives) will be manufactured locally in line with Transnet’s commitment to localisation of the manufacturing of imported machinery through the company’s supplier development programmes.

All 95 locomotives are expected to be delivered on time.

The transaction is part of the company’s revised R307 billion seven-year infrastructure investment programme intended to ramp up capacity ahead of demand and improve customer satisfaction. About two thirds of the investment programme will be spent at Transnet Freight Rail to boost operational performance, reliability and overall energy efficiency in the company’s rail service.

The award of the contract followed open and public tender process which drew interest from leading manufacturers around the world.  Proposals were evaluated by different sub-teams of specialists from Transnet. In line with the company’s governance processes, the evaluation was overseen and monitored by Transnet Internal Audit.

The bidders for the supply of 95 electric locomotives were evaluated on the following criteria:

• Price
• Technical ability
• Supplier development (including BEE)

These criteria are detailed in the formal invitations for proposals (RFPs or requests for proposals).

CSR was chosen through an open and a competitive bidding process. Transnet wishes to assure its potential partners that the company’s procurement policy does not prioritise geographic origins as an evaluation criterion.

Transnet is committed to maintaining the highest standards of good governance and is confident of the fairness and openness of the processes followed. The company has in place stringent governance requirements for its procurement processes, including the award of this contract.  The transaction was subjected to a rigorous auditing process conducted by Transnet Internal Audit, and received a clean bill of health.