Business Day

Prasa’s local content for train sets too low, says DCD

- MARK ALLIX Industrial Correspond­ent allixm@bdfm.co.za

HEAVY Engineerin­g firm DCD says the Passenger Rail Agency of SA (Prasa) has set the bar too low for local content in its procuremen­t of train sets.

The company said an updated tender issued by Prasa on July 18 still required only a zero to 40% local content threshold over the first three years of its 20-year R123bn procuremen­t programme.

This meant foreign manufactur­ers could supply complete motorised electric coaches or components at the expense of South African industry.

DCD said the message it was getting from the market was that such products would be imported by Prasa for the first three years. This comes as suppliers in SA are already achieving more than 50% local content in making railway products for related statutory body Transnet.

“In Prasa’s instance they have not engaged properly with industry,” DCD MD Rob King said last week.

“It is in the interest of foreign manufactur­ers to tell the state that SA does not have the capacity (to make train sets) — and we challenge that,” he said. He also said that 85% of Prasa’s tender process was based on price, with only 7% factored for local content and job creation.

Prasa was unable to respond before going to print.

Transnet Freight Rail (TFR) last Monday issued a possible R25bn tender for 599 electric locomotive­s and 465 diesel locomotive­s for general freight transport. The immediate local content threshold is 60% for electric locomotive­s and 55% for diesel versions. “I think TFR have got it right,” Mr King said.

Earlier this month, DCD launched a bogie that meets internatio­nal and TFR specificat­ions, having 85% local content. Bogies are wheeled chassis for heavy transport equipment such as train coaches.

DCD said its product greatly beat Prasa’s tender requiremen­ts for companies to become preferred suppliers. The group subsequent­ly made representa­tions to the government, stating Prasa’s minimum local content requiremen­ts were too low.

Daryl Leggitt, technical manager at DCD Rolling Stock, said last week it appeared Prasa wanted proven products, because passenger railway coaches had not been built in SA for 20 years, despite DCD products already meeting specificat­ions.

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