Date: 09/01/2012

Source: The Department of Public Enterprises

Title: SA: Gigaba: Address by the Minister of Public Enterprises, at the signing ceremony between Transnet and General Electric, Tshwane 

Programme director
Honourable Dikobe Ben Martins, Deputy Minister of Public Enterprises
His Excellency, Mr. Donald Gips, US Ambassador
Mr Tshediso Matona, Director-General of Public Enterprises
Mr Mafika Mkhwanazi, Transnet Chairperson
Mr Brian Molefe, GCE of Transnet
Mr Richard Vallihu, Chief Executive of Transnet Rail Engineering
Mr Jay Ireland, Chief Executive Officer of General Electric Africa
Distinguished guests
Ladies and gentlemen,

I would like to express our gratitude to the Chairperson of the board, the board and the Executive Management of Transnet for inviting us to this occasion and for honouring government’s commitment to public investment which we see as a critical instrument to economic development.

Exactly eleven month ago we saw the delivery of locomotives by General Electric (GE) to Transnet which are part of our plans to revitalise South Africa’s rail infrastructure capacity.

We have gathered today to celebrate another milestone of Transnet Capex programme, the signing of the contract between Transnet and General Electric to build other 43C30ACi diesel-electric locomotives.

This contractual agreement signifies Transnet’s commitment to the sustainable development of our country’s industrial capacity and continued improvement of rail efficiencies.

This event breathes further life to the recently signed Local Procurement Accord with social partners, which underscores the strategic intent of our Industrial policy strategy and calls for increased localisation of production or manufacturing goods with an objective of reducing dependency on imported capital goods – reaping the multiplier effect for the economy.

This occasion today is not only about procurement from local suppliers, local building and assembling of locomotives, sustainable employment and skills development, but will also launch South Africa as a competitive manufacturing destination of rail equipment within the global rail industry, therefore creating opportunity for markets, in particular the African market, given our proximity and thus generating the required revenue to meet our social development needs.

Lastly, I am delighted by the inclusion of apprentice programme to this transaction as it will expand our country’s skills base and transfer technical knowledge to young people who struggle to join labour market due to lack of skills.

Indeed, as recently as Sunday 8th January 2012, on the occasion of the Centenary Celebrations of the ruling party in Mangaung, President Zuma said:

“We should take urgent and practical steps to place education and skills development at the centre of our transformation and development agenda.”

Through this contract, we are giving practical effect, among others, to this injunction by the President.

I urge Transnet, GE and other Original Equipment Manufacturers (OEM) involved in this mega project to adopt a handholding approach, support small local manufacturing industry and be open to incurring economic cost in the interest of building our industrial capacity and social transformation.

Both the department and Transnet are committed to investing in new capacity in order to ensure that we enhance our rail infrastructure and consequently continue to support both domestic and international trade in South Africa - that is, general freight and export business.

I thank you.