Leading provider of railway infrastructure solutions, VAESA, is pleased to announce that it has been awarded a significant three-year contract by Transnet Freight Rail (TFR) to manufacture and supply TFR’s demand for turnout sets and components annually. This collaboration is a testament to VAESA’s commitment to delivering high-quality railway products and services that enhance South Africa’s rail network. TFRs’ decision to award VAESA with this game-changing contract from a rail network infrastructure perspective, underscores the company’s reputation for excellence and innovation within the railway industry.
“We are delighted to have been selected by TFR for this significant contract,” says Pulane Tshabalala Kingston, VAESA’s Chief Executive Officer. “This partnership between ourselves and TFR aligns perfectly with our mission to provide cutting-edge railway solutions that contribute to South Africa’s transportation infrastructure progress. Our team is dedicated to delivering products of the highest quality that meet the stringent standards set by TFR.”
Local production a boost for the economy
The turnout sets and components for this project will be manufactured at VAESA’s state-of-the-art Isando facility in Johannesburg. The facility holds a unique history, as it was acquired 26 years ago by voestalpine Railway Systems, part of the voestalpine group, a distinguished Austrian-listed metal company renowned as the unrivalled leader in turnout technology globally. In 2021, Mirai Rail Corporation, a black woman-owned company, acquired a controlling interest in VAESA.
“As the only facility of its scale in sub-Saharan Africa, our Isando facility stands as a testament – not only to the company’s dedication to advancing railway infrastructure and technology on the Continent, but also to our commitment to local manufacture in South Africa,” says Tshabalala Kingston. “In this regard, it is important to note that our facility has the capacity to comfortably meet both TFR’s demand in terms of the awarded contract, as well as our other customers’ demands. We have gone to great lengths to ensure the security of supply for our customers, as we understand how important this is,”
The awarding of the contract comes after a few tumultuous years for VAESA. The most recent prior contract for manufacturing and supplying turnouts and turnout components, dates back to 2012. This two-year contract, awarded in 2014 to VAESA, saw an 18-month extension when it concluded in 2016. In January 2019, a fresh request for a proposal for turnouts was initiated by TFR, resulting in an award in September 2019 to another company. This award was challenged and subsequently overturned.
“It is noteworthy that no turnout contracts have been successfully awarded by TFR over the past five years, thus contributing to a significant backlog for TFR. The award of this contract is a positive step forward by TFR,” continues Tshabalala Kingston.
Turnouts are a critical component of modern railway infrastructure. They let trains change tracks smoothly, without needing to stop. Turnouts allow trains to be re-routed to avoid congestion, delays, or maintenance work. Additionally, rail turnouts enable the creation of sidings, which are essential for freight trains to pass each other on single-track lines.
Empowering communities and driving economic growth
According to Tshabalala Kingston, the significance of the contract goes well beyond VAESA, casting a positive light on the entire perway industry. “This award heralds a much-needed turnaround that will breathe new life into various facets of the industry – including job prospects and the livelihood of downstream suppliers, who provide essential components like nuts, bolts, chairs, and fishplates. The positive impact of this award extends across the industry, as it revitalises not only VAESA, but also the network of companies that support its operations.”
Already, VAESA has supplied TFR with 18 complete turnout sets. These were installed in July this year during the annual shutdown of the coal line that runs from Lephalale in Limpopo, through Mpumalanga, to the Port of Richards Bay in KwaZulu-Natal. The turnouts were installed on the Ermelo, Vryheid, Ulundi and Richards Bay lines. As of January 2023, the coal line had a number of clamped turnouts, which hurt the ability of coal mining companies to evacuate their export coal. Replacing 18 turnouts has been heralded as a game-changer, significantly improving cycle times and overall turnaround time in the TFR Ermelo yard – ultimately halving the overall cycle time.
“The awarding of this contract and the successful engagement and participation in the yearly coal line shutdown, through collaborative efforts with various stakeholders, serves as undeniable evidence of what is possible when all stakeholders come together with a common purpose, ” concludes Tshabalala Kingston. “It benefits the manufacturing industry at large and users of the various rail corridors. Equally important, is that it will increase tariff revenues for Transnet – given the greater operational efficiencies achieved, allowing for more volumes to be transported between the coal mines and the Port of Richards Bay. This impact of the award cannot be underestimated – it has the capability of contributing to the re-awakening of the South African rail renaissance.”
