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Thursday, May 12, 2011

Sishen line gets iron horses instead of steel factories - Report

Thursday, 12 May 2011

Just after economic development minister Mr Ebrahim Patel told delegates to the World Economic Forum on Africa that the days of simply transporting iron ore down the long Sishen to Saldanha rail route to be shipped abroad for benefication should be rethought, a question in Parliament shows that there are no short term plans for a change to this practice.

In a reply to Mr Mlindi Nhanha of Cope, public enterprises minister Mr Malusi Gibaba confirmed that Transnet was in the process of acquiring 32 locomotives from Mitsui in Japan.

He not only noted that no company had tendered for the contract to deliver them because the procurement of these additional 32 locomotives was confirmed to Mitsui, but that Transnet selected Mitsui because it is already manufacturing 44 of this specification of locomotives.

Asked by Mr Nhanha for the value of the transaction, he said that this could not be made public because it is commercially sensitive.

From May to September 2012, two engines a month would be delivered. Three would arrive in October 2012, two in November 2012 and one in December 2012. In 2013, two a month would be delivered from January to April 2013, rising to three in May 2013, dropping again to two a month in June and July and then the last one of the 32 would be delivered in August 2011.

According to Engineering News, in March 2011, newly appointed Transnet CEO Mr Brian Molefe reported that the locomotives would be ordered to boost capacity to 61 million tonnes a year on the 860 kilometers iron ore line. They will fall under the command of Transnet subsidiary Transnet Freight Rail. (sourced from www.iol.co.za)

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