Bombardier Snags Part of C$5.16B Contract to Supply South Africa With 1,000+ Rail Coaches

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By Vittorio Hernandez | March 18, 2014 9:31 AM EST

Canadian manufacturing giant Bombardier got part of a $5.16-billion contract to supply South Africa with 1,064 locomotives to the country's freight rail system, Transnet Freight Rail.

Bombardier is one of the four that snagged the lucrative contract, although the firm did not disclose how much is its share of the contract.

Bombardier and CSR Zhouzhou Electric will provide 599 electric locomotives and General Electric and CNR Rolling Stock will build 465 diesel engines. All the locomotives assigned to Bombardier would be manufactured in South Africa. CSR and CNR are Chinese firms.

The new locomotives are part of Transnet's $28-billion seven-year expansion plan for its railways, ports and pipelines to move faster commodities for export by 2019, mainly coal and iron ore.

Transnet Chief Executive Brian Molefe said it split the contract into four companies because no single manufacturer has the capacity or resources to deliver the 1,000 plus locomotives within the time span required.

The first delivery is expected after 15 months and the last after three years.

Bombardier was also the manufacturer of high-speed passenger trains in Johannesburg, which Toronto does not even have.

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