PRASA’s R51bn Gibela Deal fuels SA Rail exports boom

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09-05-2025
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THE Passenger Rail Agency of South Africa’s (PRASA) R51-billion contract with the Gibela Rail Transport Consortium to build 600 six-car trainsets is transforming the local rail sector.

The contract is not only creating a supply chain to support the local industry, but also seeing some local companies exporting rail components.

How the PRASA Gibela deal Builds Local Rail Supply Chains

The Gibela Rail Transport Consortium is made up of French multinational Alstom and uBumbano Rail, and has so far assembled 275 trainsets.

The deal with PRASA has fostered the development of the local industry, with 60% of components now sourced locally, says Thabiso Komako, incoming CEO of Alstom Ubunye.

“It’s quite a good story because our supplier development objective has been fully met. We managed to achieve over 60% local content. We had a number of suppliers that were established solely because of this project.”

PRASA Gibela deal Fuels Supplier Diversification into Rail

Aside from getting OEMs to set up factories locally, it also encouraged local companies in the automotive and aerospace sectors to expand into rail.

This has even seen some local companies secure export contracts.

“Some of them now are even supplying Alstom, even outside this project, because once you are in an Alstom database, you are actually competitive globally,” Komako says.

The consortium’s suppliers are not the only entities tapping into the country’s burgeoning rail sector, as Alstom Ubunye, a maker of electrical and mechanical components which include end-under-frames, bogies, and bogie frames, is also looking to tap into it.

Though Alstom Ubunye has a history going back to 1957, when it was then known as Union Carriage and Wagon, it was bought in 2016 by Alstom and Commuter Transport & Locomotive Engineering.

Alstom has since taken full control, and Alstom Ubunye only had the consortium as a client. Komako says this is changing, as Transnet is now a customer, and is also looking to find overseas customers.

“I think it’s a very good initiative, and we are still pursuing more business.”

PRASA Gibela deal Boosts Maintenance & Digital Rail Tools

Aside from making electrical and mechanical components, Alstom Ubunye also provides essential services to keep trains in optimal condition through regular maintenance and offering digital tools to enhance train operations.

It supports all types of rail vehicles, including those produced by other manufacturers. The solutions are for all types of rail vehicles, including non-Alstom manufactured rolling stock.
Alhough over 300 trainsets still need to be built under the PRASA contract, the commitment by the government to improving rail signalling could see even more trainsets coming onto South Africa’s rail network.

“Once that has been addressed, more trains will go on the lines and they will be able to hopefully get awarded the second tranche. Initially, the project was really 1 200 trains, even though it was just half of it that was awarded.”

Komako says an improvement in singalling could also result in a vast improvement in train speeds, as currently the trains are running at about 30km/hour to 40km/hour, which is much slower than the R120/hour they are designed to run at.