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Bombardier Confirms Value of Contract with Transnet Freight Rail for Locomotives in South Africa

April 2, 2014 Berlin Transportation,  Press Release

  • 240 BOMBARDIER TRAXX locomotives to be delivered from April 2016 until December 2017
  • Contract volume approximately $1.2 billion US

Rail technology leader Bombardier Transportation today announced the value of the contract between its subsidiary Bombardier Transportation South Africa (Pty) Ltd and Transnet Freight Rail (TFR) for the delivery of 240 electric TRAXX Africa locomotives. The contract became fully effective at the end of March after it was originally signed and announced on March 17, 2014. Bombardier’s total contract value based on the list price is approximately 13 billion South African Rand (893 million euro, $1.2 billion US).

The order is part of the largest locomotive supply project in South Africa’s history, with overall orders for 599 electric and 465 diesel locomotives from four different suppliers. TFR will use the 240 TRAXX Africa dual-voltage electric locomotives for its general freight business. Bombardier will produce the new locomotives in South Africa until the end of 2017, with the first delivery expected in April 2016. The locomotives will be designed for speeds of up to 100 km/h.

Lutz Bertling, President and COO, Bombardier Transportation, said: “This landmark order demonstrates how Bombardier Transportation continues to grow local roots in key emerging markets such as South Africa. The Evolution of Mobility is a global promise to drive economic growth with products and a supply chain that benefit the communities in which we operate.”

Bombardier Transportation South Africa is owned by Bombardier Transportation GmbH at 74 per cent of the company, with the remaining 26 per cent owned by South African employees and business trusts. These 26 per cent of shares are owned by employees’ trusts at 6 per cent, ensuring that the majority are black beneficiaries, and 20 per cent is allocated to a business trust for current and future qualifying business associates and suppliers, including NGOs.

Bombardier is in the process of identifying a number of key subcontractors with experience in the rail industry and engineering who together with our European facilities will support the transfer of technology and know-how to the South African rail industry for this project. More than 60 per cent of the contract scope will be localized, ensuring investments in local manufacturing capacity, training and further improving the skills development of local employees, while working with local partners to achieve the same objectives.

The TRAXX Africa design benefits from the vast experience of the TRAXX dual voltage locomotives operated by many of the leading European rail freight and passenger operators. TRAXX locomotives are well known for their high reliability, excellent traction capabilities, energy efficiency and low maintenance cost.

About Bombardier Transportation

Bombardier Transportation, a global leader in rail technology, offers the broadest portfolio in the rail industry and delivers innovative products and services that set new standards in sustainable mobility. BOMBARDIER ECO4 technologies – built on the four cornerstones of energy, efficiency, economy and ecology – conserve energy, protect the environment and help to improve total train performance for operators and passengers. Bombardier Transportation is headquartered in Berlin, Germany, and has a very diverse customer base with products or services in more than 60 countries. It has an installed base of over 100,000 vehicles worldwide.

About Bombardier

Bombardier is the world’s only manufacturer of both planes and trains. Looking far ahead while delivering today, Bombardier is evolving mobility worldwide by answering the call for more efficient, sustainable and enjoyable transportation everywhere. Our vehicles, services and, most of all, our employees are what make us a global leader in transportation.

Bombardier is headquartered in Montréal, Canada. Our shares are traded on the Toronto Stock Exchange (BBD) and we are listed on the Dow Jones Sustainability World and North America Indexes. In the fiscal year ended December 31, 2013, we posted revenues of $18.2 billion. News and information are available at bombardier.com or follow us on Twitter @Bombardier.

Notes to Editors

Follow Bombardier Transportation on Twitter @BombardierRail.

BOMBARDIER, TRAXX and ECO4 are trademarks of Bombardier Inc. or its subsidiaries

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