Transnet, industry collaboration unlocks loco spares
Locomotive availability, one of the biggest hindrances to South Africa’s rail capacity, is showing signs of improvement thanks to increased collaboration between Transnet Freight Rail (TFR) and industry in obtaining critical spare parts.
“A number of parts have been sourced, re-engineered, and modified in collaboration with the NLCC [National Logistics Crisis Committee], industry and TFR. These plans have resulted in TFR keeping locomotives in service,” the rail operator said in response to e-mailed questions.
Last week, Thungela Resources said it was involved in the endeavour.
“Between ourselves and Transnet, we identified if there were suppliers for these critical spares where we could approach directly, rather than going through CRRC,” said Thungela CEO July Ndlovu in an interview with McCloskey. “A battery is a battery. Same thing with the compressor. It might come with a stamp which says CRRC, but actually they are made by a third party.”
The parties discovered some 80% of those components are actually generic, he said. “The next challenge was, between ourselves and Transnet, to utilise our global networks to identify who are the suppliers for these and to approach them on a prioritised basis to supply those components to us directly,” he said.
The performance of the North Corridor, which moves coal down to Richards Bay and into the export markets, has been adversely impacted by the inability to access critical spares from the China Railway Rolling Stock Corporation (CRRC).
The impasse with the state-owned Chinese supplier stems from the termination of what was deemed an illegal contract, which remains tied up in South Africa’s legal system.
TFR said it has initiated many plans to sustain the fleet since 2019 – including approaching the open market for the supply of spares, reverse engineering, modification of spare parts, and appointing a step-in equipment manufacturer.
However, “due to the complexity of having little or no specifications, manufacturing drawings and access to CRRC locomotive software, testing of alternative parts the sourcing of spare parts is prolonged.”
TFR did not say how exactly these challenges are being surmounted through working with the private sector, but the rail operator confirmed collaborative efforts to source alternative parts have begun to yield results after just a year.
“That’s what happens when a nation chooses to work together to resolve difficult problems. You go past what looks like it’s intractable,” Ndlovu said.
But TFR has indicated that the alternative spares solution will be driven by a single Step-In Original Equipment Manufacturer (OEM) to collaborate on the sourcing of similar or alternate parts.
Important to consider, is that a locomotive comprises between 6,000 to 7,000 material items, TFR noted.
“The ‘Step-In OEM’ process involves a tender which is currently being processed, TFR will have to abide by the required processes and the outcomes,” the rail operator said.
Once the “Step- In OEM” is appointed, TFR said there will be an increase in the release of further locomotives into service. “TFR is confident that when and only when the Step-In OEM is appointed, the re-engineering capability of the new OEM, will yield the relevant results. This process is at an advanced stage,” TFR said.
It is only upon finalization of the step-in OEM process that TFR will be able to determine which similar or alternate parts can and cannot be sourced, it said.
Ndlovu said this and other initiatives to improve railing on the line is likely to see volumes return to a mid-to-high 50 mt tempo in 2025 – up from 47 mt/y currently – although Thungela is not revising any of its business forecasts just yet.
TFR noted that a resolution with CRRC remained the quickest way to return some 200 locomotives back to service between 12-18 months, with some even returned to service within three to six months.
Another key initiative to help fix the rail system is the government’s plan to give private operators access to the network.
“I am pushing that it has to be concluded within the next six months,” said Minister of Transport Barbara Creecy, who now oversees the rail and port division under the Transport Ministry since the Department of Public Enterprises was dismantled under South Africa’s new multiparty administration.
“We can then go ahead and look at the introduction of third-party participation in different forms.”
Private rail companies are eagerly preparing to add capacity and resources to Transnet’s network.
“It is clear that TFR on its own does not have enough resources to be able to pick up the current export gap and it is paramount to get private operators to come into the equation to ease this challenge,” said SAFLog CEO Thami Gwala during a panel discussion at a Johannesburg rail conference.
Gwala said that in preparation to get access to the main rail network, “it is quite important for us to ensure that we get this space right, so we are currently acquiring warehouse facilities at and near the ports.”
SAFLog is a private rail operator, which owns locomotives & shunting equipment and handles over 1 mt of various mineral cargo per month.