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Is the tender awarded to Matsetse Basadi joint venture with CSR ZhuZhu of China is intended to create local employment, skills development and the transfer of skills in the next two years of the contract

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Is the tender awarded to Matsetse Basadi joint venture with CSR ZhuZhu of China is intended to create local employment, skills development and the transfer of skills in the next two years of the contract
27/07/2012

Question for written reply

Question no.: 2938

Date of publication: 26 October 2012

2938. Mr M A Nhanha (COPE) to ask the Minister of Public Enterprises:

(1) Whether the tender awarded to Matsetse Basadi joint venture with CSR ZhuZhu of China is intended to create local employment, skills development and the transfer of skills in the next two years of the contract; if not why not; if so, how many locomotives (a) are destined for delivery as complete built units from China and (b) will be assembled locally;

(2) Whether he has found that such short-lived contract terminating in September 2014 is economically viable for such huge contract in all aspects of empowerment and skills transfer; if not, what is the position in this regard; if so, what are the relevant details;

(3)(a) How much does his department intend spending during the duration of the contract and (b) what are the names of the local shareholders of the joint ventures?  NW3695E

Reply:

According to Transnet the tender awarded to Matsetse Basadi is a joint venture with CSR Zhuzhou electric locomotive of China which will contribute to the creation of local employment, skills development and the transfer of skills.

(1)(a) Seven (7) locomotives will be assembled in China.

(1)(b) 88 locomotives will be assembled in South Africa by Transnet Rail Engineering (TRE).

(2) The 2 year contract is due to Transnet’s urgent requirement for the locomotives.  Although the period may be deemed to be short, the long term vision is to ensure that the SA economy benefits from the following:

  • TRE being the local assembly partner to CSR Zhuzhou;
  • Build capacity at TRE to assemble electric locomotives;
  • Build capacity at TRE to cater for planned maintenance and repairs requiredduring the life of the locomotives;
  • Sourcing and repair of components from ‘downstream’ local suppliers; and
  • Increase the possibility of exporting these locomotives on the Continent and the rest of the world.
(3)(a) None.  

(3)(b) The names of the local shareholders of the Matsetse Basadi Consortium are the following:

  • Basi Dirang Systems
  • Matsetse Industrial Services
  • Matla A Batho Community Trust
Page last modified:14/03/2014 16:07