Gauteng Premier, Mr David Makhura
Minister of Public Enterprises, Ms Lynne Brown
Transnet Chairperson, Ms Linda Mabaso
Transnet Group Chief Executive, Mr Brian Molefe
The Executive team and staff of Transnet,
The Chief Executive of CSR Zhuzhou Electric Locomotives Company,
Distinguished Guests,
Ladies and Gentlemen,
 
Good morning, Dumelang!
 
It is indeed a great pleasure to be with you here today.

We meet during a sad week given the tragic passing of our Minister of Public Service and Administration Mr Collins Chabane and his two protectors Sergeants Lesiba Sekele and Lawrence Lentsoane.

Memorial services are being held for them today. It is a painful loss for the country as a whole.

We will take forward Minister Chabane’s legacy through continuing the good work that he dedicated his life to, the building of a better life for all our people especially the poor and the working class. May their souls rest in peace.

Ladies and gentlemen,

In the 2012 State of the Nation Address I announced Transnet’s 300 billion rand market demand strategy. Today we are able to see tangible results.

We are pleased to join Transnet to witness and celebrate the completion and delivery of 95 electric locomotives, delivered by Transnet in collaboration with partners CSR Zhuzhou Electric Locomotives Company.

The acquisition of these locomotives forms part of Transnet's long-term fleet renewal programme aimed at increasing capacity whilst reducing the average age of our locomotives fleet.

It also forms part of governments national infrastructure development programme, designed to improve the social and economic infrastructure to boost the economy and improve the quality of life.

We also welcome the fact that this project marks the success of Transnet’s first venture into the production of electric locomotives.

I commend Transnet for the transition to a low carbon freight system through introducing these locomotives that are energy efficient. This will help reduce emissions and save electricity.  

It is also a significant step towards Transnet’s long-term goal of developing Transnet Engineering into an Original Equipment Manufacturer.
 
The delivery of these locomotives will enable Transnet to transport more freight on rail and also in a more efficient way. This will advance government’s objective of shifting the transportation of goods from road to rail.

In this way, we are certainly making progress and moving forward with improving transport logistics.

As I explained in the State of the Nation Address in 2012 when announcing the Market Demand Strategy, our objective is to increase rail, ports and pipeline capacity through infrastructure spend and efficiency improvements.

Over the past five years as Transnet you have invested more than 140 billion rand in the maintenance and expansion of our country’s rail, ports and pipeline networks.

This is very important given our focus on promoting infrastructure development to boost economic growth and job creation as well as skills development.
In this particular project, 190 people were trained in China and 260 people were employed in the assembly.

The training received from the Chinese counterparts, will ensure that Transnet has the necessary capability to effectively maintain these locomotives over their economic lifespan, thereby sustaining local jobs.

Ladies and gentlemen

It is also very pleasing that Transnet did not only partner with a Broad-Based Black Economic Empowerment company but that this consortium of CSR includes a black-woman owned company and a community trust.

By promoting indigenous enterprises, micro and small enterprise development, we expand employment and entrepreneurial opportunities for all.

This further strengthens our Government’s commitment to not only promote industrialization but to also bring historically marginalised groups into the mainstream of the economy.

Honoured guests,

Transnet’s tangible commitment to Government’s strategic objective of localization is commendable.

We welcome the fact that 85 of the 95 locomotives were assembled in South Africa.

This will contribute to the development of local industries by stimulating local commerce, strengthening industrial cycles, as well as building up the manufacturing capacity of the rail industry.

It is also encouraging that of the total 2.7 billion rand contract value of this transaction, at least 65%, or 1.7 billion rand was committed to local supplier development.   

The strategic partnership with China has also provided great learning opportunities for South Africa, particularly in terms of optimal utilization of resources, technological advancement and skills transfer as distinctive benefits.

Undoubtedly, building skills and technological transfer remain essential components to improving productivity and building world class organisations.

Esteemed guests,

The successful achievement of the delivery of 95 locomotives has set a great platform for Transnet to deliver on the acquisition of the one thousand and sixty four (1064) locomotives which was announced in the previous year.

It sets us on the path to growing this sector and doing better each time. For example, over time, our people should gradually move from just supplying the steel and other raw material required in making more complicated components like traction motors for example.

We should be able to manufacture those traction motors ourselves.

Our aim is also to see the country building up the capacity and capability to manufacture its own locomotives in the future.

We should be able to also export to other countries and especially to our neighbouring countries and the rest of the continent.

This will certainly contribute greatly to our objective of regional integration and improving economic activities within the continent.

In fact, a recent meeting of the African Union Heads of States took a decision to nominate South Africa to champion the manufacturing of rolling stock for the continent.

Ladies and gentlemen

Transnet continues to play a critical role in other sectors of our economy including supporting our mining sector. In response to the global Manganese market, South Africa’s production of Manganese is projected to increase significantly in anticipation of a deficit in global supply by 2017 onwards.

Last year in May, Transnet received approval to begin the manganese expansion project to provide the necessary rail and port infrastructure in response to this project.

We are pleased that you have committed to reserve up to 25% of the volumes to emerging and junior miners.

Affordable access to the Transnet rail and port export system will improve their viability and sustainability.

As part of our drive towards economic transformation and empowerment, Black people and especially youth and black women, should take advantage of these opportunities by developing the requisite skills in this regard in order to defeat the ill of unemployment.

Ladies and gentlemen

We are also very happy with the contribution of Transnet to youth development.

State owned companies and enterprises must contribute to skills development and Transnet is playing its part. In the past financial year, Transnet awarded 138 full-time engineering bursaries, and offered 258 Engineers in Training among other noble interventions.

You should continue this good work as our youth is the future and if we invest in them, we are building a better tomorrow.

Ladies and gentlemen

I would like to take this opportunity to congratulate you on the delivery of the 95 locomotives.

I look forward to more achievements as the company implements the infrastructure build programme and in all other spheres of work.

Together we are moving South Africa forward.

I thank you.

Issued by: The Presidency
Pretoria