Transnet Engineering has signed a multi-billion-rand agreement worth more than R6 billion with global transport technology provider Wabtec Corporation, in a move aimed at improving South Africa’s freight rail performance and supporting Transnet’s broader turnaround strategy.
The 10-year agreement was signed at a ceremony in Pretoria on Thursday and is intended to address persistent freight and logistics challenges by improving locomotive reliability, performance and maintenance.
The deal will also focus on modernising and upgrading South Africa’s freight locomotive fleet, while strengthening technical expertise and supporting skills development within the local workforce.
Transnet Engineering, a subsidiary of state-owned logistics company Transnet, also has a presence in the Southern African Development Community (SADC), where it has entered into agreements with countries including Botswana and the Kingdom of Eswatini.
Graduate programmes to support young professionals
Transnet Engineering chief executive Bessie Mabunda said the agreement would create opportunities for young people through graduate development programmes and technical skills training.
Mabunda said the programme would support 20 graduates every two years, helping to develop the skills required to strengthen the country’s engineering and transport technology capabilities.
“There will be, for every two years, there will be 20 graduates that will be supported through graduate programmes. That is an immense opportunity for the young person that will then grow up to have a family, have a job and all of that,” Mabunda said.
She was speaking during a media question-and-answer session following the signing ceremony.
The graduate programme is expected to provide young professionals with opportunities to gain experience in technical fields while contributing to the development of local engineering capacity.
Mining and agriculture among sectors expected to benefit
Mabunda said the agreement could also have wider economic benefits by improving the movement of freight and supporting industries that rely on an efficient logistics network.
Mining, manufacturing, automotive production, fast-moving consumer goods, agriculture and bulk fuel distribution were among the sectors she identified as potential beneficiaries of improved freight rail operations.
She said moving greater volumes through the freight system could strengthen downstream industries, support business growth and contribute to job creation.
“The more of those that we move as we enable those downstream industries, you then find that there are opportunities, things are growing, more jobs are created in those sectors,” Mabunda said.
She added that greater localisation and the transfer of technical expertise could help domestic suppliers expand their capabilities and participate more actively in the transport engineering value chain.
According to Mabunda, developing local technical skills and qualifying suppliers to undertake more specialised work could increase employment opportunities while strengthening the country’s technological capacity.
Part of broader freight logistics recovery efforts
The agreement comes as Transnet pursues efforts to improve freight rail performance and address logistical constraints that have affected the movement of goods across South Africa.
Reliable locomotives are central to increasing freight capacity, improving operational efficiency and enabling businesses to transport commodities and manufactured products more effectively.
Through the 10-year partnership, Transnet Engineering aims to strengthen locomotive maintenance and reliability while building local skills and technical expertise.
The extent to which the agreement improves freight performance will depend on its implementation and the resulting gains in locomotive availability, operational efficiency and freight capacity.
The deal represents a significant investment in Transnet Engineering’s efforts to modernise its operations, with potential implications for industries that depend on an efficient freight logistics network.