GE seeks inroads into Africa railways market
Opportunities open up as Mozambique buys 26 locomotives
GENERAL Electric (GE) sees the potential to supply more locomotives built in South Africa to customers on the rest of the continent, as African governments expand and upgrade railways to boost economic growth.
The US company, which has a partnership with the engineering unit of South African state-owned rail operator Transnet, had recently exported 26 locomotives to Mozambique and was looking for more opportunities, GE South Africa chief executive Thomas Konditi said on Tuesday.
African governments were investing in rail infrastructure for freight as road transportation was more expensive, he said.
Transportation, and rail in particular, “has to be part of any economic growth”, said Konditi, who is also GE’s head of transportation in Africa.
“The infrastructure projects across the region, the continued growth of rail networks, just say that the need for locomotives and wagons and that kind of infrastructure is going to keep going.”
GE and Transnet Engineering are assembling locomotives at a facility east of Pretoria.
The company, which is based in Fairfield, Connecticut, was one of four winners of a R50 billion contract awarded by Transnet Freight Rail in March last year to supply 1 064 diesel and electric trains over four years. The factory also makes locomotives for export to other African countries under an agreement between the two companies.
“We have a cost-competitive, global-quality, first-rate technology product that you can ship out of South Africa,” said Konditi. “Looking forward, if there’s something that we can build here, we’ll try to build it.” – Bloomberg