The Gibela Rail Transport Consortium (Gibela) reported on Wednesday that it would begin building a
R1-billion factory complex at Dunnottar, in the Gauteng metropolitan area of Ekurhuleni, during the third quarter of 2015.

The 85 000 m² factory was being established to manufacture trains for the State-owned Passenger Rail Agency of South Africa (PRASA), in line with a R51-billion contract for the supply of 600 new trains over 10 years.

PRASA signed the contract with the Alstom-led consortium in October 2013, following a competitive-bidding process. It was initially anticipated that factory construction would begin in early 2015, but delays related to securing the site resulted in the schedule slipping.

The first 20 trains were being made in Brazil, while the remaining 580 units would be assembled at the Dunnottar industrial complex, with the last train scheduled for delivery in 2027.

At its peak, the manufacturing facility would produce 62 trains a year, in line with Alstom’s X’Ttrapolis MEGA commuter train design.

The Dunnottar facility would also accommodate local component suppliers in an effort to ensure that the contract’s 65% local-content stipulation was met.

Gibela CEO Marc Granger said the consortium was aware of the challenges associated with developing a sustainable industry and that “a special relationship with new and established South African suppliers” would need to be created.

The factory would provide employment for at least 1 500 people and Gibela indicated that its recruitment process was at an advanced planning stage. Employment preference would be given to those with academic qualifications or recognised artisanal skills.

Gibela said the Brazil factory had completed the first six-car train, which was currently undergoing testing ahead of shipment to South Africa for delivery in November.