African Railway Systems notes Import regulations may stop small Loco Operators
South Africa’s smaller locomotive and rolling stock operators are unlikely to benefit from Transnet opening its network to private operators unless rules around importing used equipment are changed.
This is the view of African Railway Systems chief operating officer Dylan Knott, who said existing rules laid down by the International Trade Administration Commission (ITAC), which forbid imported second-hand rolling stock from running on SA tracks meant that any successful bidders would have to provide new locomotives and rolling stock to run trains.
“We cannot bring in pre-owned locomotives, second-hand track machines, rolling stock, nothing.” Removing the ITAC barrier, however, would make the situation fairer for many would-be operators, he added.
“The bottom line is how can you open up the network if you have a limited supply of locomotives?” he said, adding that none of the larger established locomotive operators currently had spare capacity. “If operators could bring in rolling stock — not necessarily through us — open access could work and get traffic back on rail,” he said.
Knott said he supported the move to open SA’s rail network to private operators. “It’s been a long time coming,” he said. However, the process needed to be fair to all and that Transnet should not be able to dictate which ports operators should use.
The bidding process was also problematic, he added. “It should be a case of if an operator wants to run from say, Kirkwood, and wants to ship citrus via Gqeberha (Port Elizabeth), he should be able to apply and say - ‘I have my own rolling stock and locomotives and I want a permit to run, and not have to bid for it,” he said. Knott was also concerned that larger operators would end up winning all the bids.
“If you’ve got your own rolling stock, you’ll end up getting everything and they'll be no chance for smaller operators to get in,” he said.
African Railway Systems had already received six or seven queries from prospective operators wanting to run on the Transnet network. The company, which started out in 2010, refurbishing small industrial shunters for clients such as grain silo operators, is currently building new 1900hp Bo-Bo diesel-electric locomotives for use in Madagascar-based Madarail. Belgian-owned Madarail has a 25-year concession to operate the 673km-long Tananarive–Côte Est (TCE) system in Madagascar.
African Railway Systems initially supplied two regauged former Transnet 91-class GE locomotives via Versarail PE to Madarail, for use as shunters after which it landed an order for four brand new G20-3-class locomotives to operate the system. Critical functions such as diagnostics, traction and anti wheelslip are controlled with microprocessor units.
The locomotives were built by African Railway Systems partner, Ferrovias Del Bajio S.A (FVB), at its workshops in San Luis Potosi, Mexico. “They managed to keep to a schedule despite the pandemic — they were working flat out, seven days a week and getting these machines to Madagascar on a very short deadline.”
“To a degree, these are custom designs,” he said. “A client can say ‘I want a heater, a restroom, air-conditioning, sharp flanged wheels’ and none of the other people offer this. They say, ‘there’s my product, take it as it stands."
Knott believes the design could be a viable replacement for Transnet’s elderly class 35s which, he says are no longer “top-notch”. Partnering with FVB which had access to traction motor cores and locomotive frames meant a step up for African Railway Systems, sparking interest from countries throughout Africa as well as South America.
“We can build, rebuild and regauge anything,” he said, noting that the company had since received queries from operators in Zambia, Malawi, Mozambique and Swaziland. African Railway Systems also builds coaches — or “cars” as they are known in the Americas — as well as, hires out small industrial locomotives through its partnership with KZN-based locomotive and track maintenance firm LE@GE.
The company also supplies track machines through a collaboration with SK Rail Germany (Harsco) and has built four new locomotives to date with another 13, 1900hp and three 1200hp locos on possible order for Madagascar.
Commissioning of the G20-3 locomotives for Madarail is almost complete.“If that all goes well, they may want us to rebuild their existing locomotives,” said Knott. The company’s workforce comprises two consultants in South Africa, while FVB employs 75 people at its factory. “That’s not to say we will never have a factory in South Africa,” said Knott. “Watch this space.”
