Since the Passenger Rail Agency of South Africa (PRASA) sent out invitations to prospective black investors to invest in their multi-billion rand rolling stock renewal plan, the programme is quickly gaining a head of steam.

There is a 65% local content requirement for coaches to be built in South Africa, which really adds to the investment opportunities for the previously disadvantaged.

With almost 7300 coaches required to be manufactured, the winner of the rolling stock tender will need to place great investment in local engineering capacity to meet local content requirements. This is vital if they wish to successfully bring the country’s commuter rail service into the 21st century.

Passenger coaches have an extremely diverse supplier base, with as many as 600 various components needed for the final assembly of a coach namely; window frames, glass, doors, seats, seat covers and cabling, bogeys, traction and braking systems among others.

With such a large number of parts needed, the rail engineering sector and related sectors will have an amazing opportunity to capitalise on this and this will also give them the opportunity to provide a substantial amount of jobs.

A third of Prasa’s current fleet must cease to operate within three years as the coaches have reached the end of their run.

The investment in rolling stock comes at a hefty price and with decades of little to no investment in our rail services, we have been left with an unreliable service which is responsible for the daily commute of almost two and half million people.