1. PORTFOLIO COMMITTEE ON TRADE AND INDUSTRY
Follow up on local public procurement
Date: 5th September 2017

2. Contents

3. Rolling Stock Fleet Renewal Programme

4. Rolling Stock Fleet Renewal Programme

5. Adopted Strategy for Economic Development

6. PRASA’s contract with the Gibela Rail Transport Consortium

7. Localization Commitments
Localization targets for both the supply and maintenance of the new trains:
Manufacture and Supply
Delivery Year
May 2020
May 2021
May 2022
May 2023
May 2024
May 2025
May 2026
May 2027
May 2028
May 2029
May 2030
Local Content %
43.30%
67%
69.00%
69%
72%
72.00%
75%
Contract Year
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
Local Content %
50%
85%
92%
89%
87%
84%
81%
78%
77%
76%
Maintenance
Contract Year
2027
2028
2029
2030
2031
2032
2033
2034
2035
Local Content %
76%
74%
73%
72%
71%
Local Content:
is measured throughout the supply chain, i.e., up to the raw materials used within a component
measures South African value add on components, i.e., if the raw material is foreign, but has local manufacturing, then the local manufacturing portion will only count as Local Content.
Gibela will thus require companies within its supply chain to have Local Content commitments on their products

8. Localization Commitments

9. Phasing of Localization aligned to Manufacturing Activity

10. Progress to date

11. Localisation on the 1st 20 Trains (1/2)

12. Localization on the 1st 20 Trains (1/2)

13. New Factory: Manufacturing of Trains in SA
Construction of the factory at Dunnottar Park, Ekurhuleni has advanced:
Construction of Training Centre and main Car-Body Shell Building are complete
Fittings and Tooling currently being installed in preparation for the start of operations
Operations targeted to commence by Q4 2017
Gibela is currently in the process of on-boarding suppliers for South African manufacturing activities
R1 billion manufacturing facility, including training centre

14. Construction of the Local Factory – SMME Development

15. SMME Suppliers during Construction (Phase 1)

16. SMME Suppliers during Construction (Phase 2)

17. Local Factory - Progress

18. Local Factory - Progress

19. Local Factory - Progress

20. Local Factory - Progress

21. Supplier Park: Manufacturing of Trains in SA
Is a critical enabler for the development of a central industrial rail hub which will support localization
Mobilization to develop the Supplier Park that supports the Local Factory is currently underway
7 Companies already have in principle agreement to have facilities in the Supplier Park

22. B-BBEE Procurement & Enterprise Development – Progress to date
19 QSEs and 4 BWOs have been awarded for components used for the first train manufactured in South-Africa
AfroCapital (100% BWO) has been identified as a strategic supplier of value-added steel and is currently being developed by Gibela
Looking forward, there is a commitment to significant preferential procurement targets: 70% B-BBEE, 13% QSE & EME and 3.5% BWO procurement
Gibela has spent R14m in Enterprise Development and the overall commitments amounts to R892m over the life of the project
3 programmes have been developed to offer a variety of support to current and potential suppliers including a development fund of R124m
In addition, Gibela will fund an incubator programme that will allow small companies to focus on technical aspects of their business
7 companies are currently in the selection phase for the incubator programme

23. Job Creation – Progress to date
1080 Citizens
969 Black Citizens
531 Skilled Black Citizens
246 Black Women
763 Black Youth
Job Creation
Management Control & Employment Equity
Black Disabled Employees 12
Black Employees In Top and Senior Management 32
Black Women In Top and Senior Management 10
Black Employees in Middle Management
181
during manufacture, maintenance and construction to date
Black Women in Middle Management 61
Black Employees in Junior Management
456
Black Women in Junior Management 81

24. Skills Development – Progress to Date

25. Maths and Science programme an example of a successful initiative kicked off in 2016

26. Refurbishment of Existing Fleet

27. Local Content Achievements – Refurbishment of Existing Fleet
Major Components
Labour = 100% Local
Job Creation = 2241 jobs
Total Local Expenditure FY16/17 = R1.34bn
Total Localisation = close to 99%

28. Refurbishment and Overhauls - Major Suppliers

29. The FUTURE of South African Passenger Rail is here!
Thank You
The FUTURE of South African Passenger Rail is here!
THANK YOU