Transnet marks milestone as 200th Traxx locomotive rolls off Durban production line

Transnet on Wednesday celebrated a major milestone in its fleet renewal programme as the 200th Traxx 23E locomotive was completed at its Durban manufacturing facility.

The locomotive forms part of the 240-unit order that Transnet is building to modernise and expand its freight rail fleet. This as Transnet Engineering positions itself to become a leading Original Equipment Manufacturer (OEM) for the continent.

Group CEO Michelle Phillips and Transnet board chairperson Andile Sangqu attended the ceremony, hailing the achievement as a turning point for the State-owned logistics company.

Sangqu said the board had committed earlier this year to return to Durban once the 200th locomotive was rolled out.

“It really gives me great pleasure to witness the launch of the 200th locomotive, which marks a significant milestone in our effort as Transnet to modernise and expand our rolling stock," Sangqu said.

"The lack of locomotives due to the inability to secure parts and maintenance for a large number of our fleet has indeed impacted Transnet's ability to deliver on its mandate and support the country's economy through efficient freight transportation.”

Sangqu said modern, reliable assets are central to Transnet’s Reinvent for Growth strategy, designed to shift the organisation from crisis response toward long-term, sustainable performance.

“The lack of locomotive availability for the longest time has been a critical bottleneck to our aspirations, and it has been one of our major systemic constraints for Transnet," he said.

"At the centre of the challenges with our locomotives has been the 1064 locomotive procurement programme, incomplete delivery, lack of spare parts, and maintenance contracts.” 

Sangqu said Transnet has taken deliberate steps to stabilise the business, including the 18-month Recovery Plan launched in October 2023.

Over the next five years, Transnet plans to spend R127 billion, with 84.7% allocated to infrastructure maintenance and refurbishment.

“As a result of all of this, we have been forced to rely on an ageing fleet, which has hampered the ability and reliability of the fleet over the years. Hence our decision to implement the 18-month Transnet Recovery Plan in October 2023," he said.

"Some of the key elements of our recovery journey include a commitment to capital expenditure. In the next five years, we plan to spend R127bn, with approximately 84.7% of this expenditure earmarked for maintenance and refurbishment of infrastructure.”

Transnet Engineering said production accelerated significantly after a 2023 settlement agreement with project partner Alstom, which had acquired the original contractor Bombardier.

By introducing a 24/5 shift system and stabilising the supply chain, Transnet delivered 43 locomotives in 2024, its best performance to date. The remaining 40 units are scheduled for completion by June 2026.

Tristan le Masne, managing director of transport company Alstom Southern Africa, in a message of support, praised the achievement, saying the 200th locomotive demonstrates what collaboration within the rail industry can deliver.

“Above and beyond the number, what we want to see is also what can be accomplished when the rail team of South Africa comes together," Le Masne said.

"We're witnessing a time in South African rail when industry leaders, both public and private, local suppliers, and dedicated teams have decided to unite.”

Phillips, said the Traxx 23E project is the cornerstone of Transnet's effort to modernise its freight rail fleet.

“Modernising our fleet is a critical component of the national mandate to lower the cost of doing business and enable economic growth. Today’s celebration of this milestone is a manifestation of our commitment to modernise our fleet and enhance freight capacity through sustained and focused investment in rolling stock assets.”

BUSINESS REPORT