PRASA’s R51bn GIBELA DEAL FUELS SA RAIL EXPORTS BOOM
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.
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 the company is also looking to find overseas customers.
“I think it’s a very good initiative, and we are still pursuing more business.”
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.
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.
“This supplier development initiative has been quite a success because it’s about transferring skills, transferring technology, helping suppliers to industrialise, and improving their local content,” he adds.
PRASA Gibela Deal Fuels Supplier Diversification into Rail
Aside from making electrical and mechanical components, Alstom Ubunye also provides essential services to keep trains in optimal condition through regular maintenance and 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, not only entities tapping into the country’s burgeoning rail sector.
Though Alstom Ubunye has a history going back to 1957, when it was known as Union Carriage & Wagon, it was bought in 2016 by Alstom and Commuter Transport & Locomotive Engineering.
Alstom Ubunye is now looking to find overseas customers and diversify its business.
Local Content & Industry Impact
The deal with PRASA has fostered the development of the local industry, with about 60% of components sourced locally, according to 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.”
This localisation drive has catalysed the expansion of local industry — from cabin doors to lighting systems — and generated export orders for firms entering Alstom’s global supply chain.
Boosts Maintenance & Digital Rail Tools
Alstom Ubunye provides maintenance services and digital solutions to enhance operations and reliability across rail networks.
The company’s capabilities extend beyond manufacturing to long-term lifecycle support.
Signalling Upgrades Could Unlock Full Performance
Although over 300 trainsets still need to be built under the PRASA contract, government investment in rail signalling could allow many more trains onto the 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 only half of it was awarded.”
Komako says improved signalling would also significantly increase speeds:
Current operational speed: 30–40 km/h
Designed speed: 120 km/h