M a r k e t N e w s

AFRICA STRENGTHENS TIES WITH CHINA

Posted on : Saturday, 27th December 2014

Africa’s Transnet and Chinese manufacturer CSR Zhuzhou Electric Locomotive (CSR) signed a Memorandum of Understanding (MoU).

This was part of South African president Jacob Zuma’s state visit to assist trade between the two countries.  

“Today’s MoU paves the way for Transnet to conclude agreements with CSR to set up manufacturing facilities in South Africa to exploit opportunities for the production and maintenance of electric locomotives as well as core rail equipment and components for African markets,” said Transnet.

The deal was signed in Beijing by Brian Molefe, Transnet Group Chief Executive, and Zhou Qinghe, CSR Chairman and President with presidents Zuma and Xi Jinping acting as witnesses.

The venture between CSR and Transnet will be based in South Africa.

“In terms of the agreement, Transnet and CSR will contribute their respective expertise and will leverage their unique expertise and experience and provide access to the know-how of their highly qualified and specialised business divisions.”

The areas they will collaborate on will include: setting up of manufacturing plants in South Africa, joint initiation and development of business opportunities in Africa and skills transfer.

Molefe is set to conclude a similar agreement with China CNR Corporation, a diesel locomotive manufacturer.

Earlier this year Transnet granted a 50 billion rand contract for the building of 1064 locomotives to four manufacturers including: CSR, China CNR Corporation, German-based Bombardier Transportation and United States’ General Electric.

“In line with South Africa’s commitment to boost its manufacturing capacity, all the locomotives except 70 will be built at Transnet Engineering’s plants in Koedoespoort, Pretoria and Durban, driving South Africa’s regional integration objectives. Transnet Engineering is the company’s engineering, manufacturing and rolling stock maintenance division,” said Transnet.

 

Source : www.cnbcafrica.com
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