"The Gibela project is history in the making and our group of engineers is excited about making it happen"

Collen Malatji, mechanical engineer

"Rail is the future of transport – it is cleaner, more efficient and faster when moving people and goods"

Matodzi Mukhuba, mechanical engineer

"Of course the Gibela project will have its challenges, but challenges are there to be overcome, and we will be ready and waiting"

Philisande Somdaka, electrical engineer

"We believe in the Gibela journey, and we realise the extent of our collective responsibility to pass on the skills we acquire abroad to colleagues at home"

Kasturie Pillay, senior mechanical engineer

"This is a project of national importance that will touch the lives of millions of South African rail passengers. I can't wait to get going"

Denzel Momplé, mechanical engineer

"We are a motivated group of engineers and there is a synergy between our skills. Most importantly, the people who work here want to be here. I believe Gibela has great possibilities in the year ahead"

Bertus Els, electronic engineer

Home | Economic Development | Enterprise development

Enterprise development

Supporting new and established South African businesses

Gibela is developing a network of local suppliers that will form part of the supply chain, providing materials, components and services for the trains and the ongoing maintenance, management and servicing of the rolling stock.

Programmes to assist start-up businesses as well as existing suppliers through the provision of loans, a business incubator and mentorships are in the planning stages. Preferential procurement policies will focus on black businesses, particularly those owned by women, and small, medium and micro enterprises (SMMEs). Negotiations with some local suppliers and manufacturers have already begun.

>65% South African content

In an effort to fulfill local content commitments a network of existing suppliers is in place, including local contractors and international businesses that have expressed interest in the project. These will be incorporated into the local supply chain, creating new jobs and developing a vast array of railway skills in accordance with BBBEE and Employment Equity requirements. There will be a rapid ramp-up to 65% and the project is expected to deliver well above this level over the period of the contract.

Local content will comprise metalwork, seats, glazing and carpets. South African raw material (steel) and other products – ceilings, batteries and lighting fixtures – are also being provided for the first twenty trains being built in Brazil.

Alstom's existing suppliers will work in joint ventures to nurture local suppliers and ensure that the transfer of technology is to international standards. An area adjacent to the plant is planned where local suppliers will be mentored and developed.

Although Alstom provides trains to countries around the globe, it is developing countries with emerging markets – such as Brazil and India – where the company has successfully implemented a localisation model and which Gibela will replicate in South Africa. In Brazil and India, the in-country facilities have been developed by first training artisans abroad under the supervision of more experienced teams − who have themselves become specialists and gone on to create their own centres of excellence – and are poised to benefit a larger geographic area. Collaborative projects in Morocco, Algeria, China and Kazakhstan have also focused on localised manufacturing.

In the longer term, it is expected that the revitalisation of the South African rail sector will not only transform rail transport in this country, but that it will become a centre of excellence on the continent, and as the preferred choice of rail supplier for countries in sub-Saharan Africa.

Creating jobs, directly and indirectly

Gibela is a value and efficiency-driven company responsible for one of the largest rail transport projects in the world. The replacement of South Africa's rolling stock is a massive project that is expected to continue for several decades and presents a rare opportunity to revitalise the local economy, creating much-needed jobs for historically disadvantaged South Africans.