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Local Content & Supplier Development

CRRC

August 2016, South Africa

www.crrcgc.cc
CRRC Introduction

CRRC is the world‐wide professional Rail Transit System Provider, ranks 266 of top 500 global Companies.

1 Rolling Stock  Leasing 4

EMU&DMU Locomotive Wagon Metro  Track 


Vehicle Machinery Products and Services

2 Green Energy Equipment Financing 5
Products Services

Wind Generator Maglev Train Electric Bus Mining Machinery


Capital Management Bank Loan

Industry Maintenance & Overhaul
3 6

Motor Inverter Deep Sea  Ventilation 


ROV Equipment Locomotive Passenger Coach Wagon
Project Implementation

22E Project Milestone
359 locomotives of Transnet 1064 project

2018 Year of 2018, last loco will be accepted

Phase 3:  ‐ 304 Locos Built in SA
2017 ‐ 12 locos completed;
‐ 12 locos in building process;
201
2016 ‐ 280 locos to be built.
6
Phase 2:  15 Locos Assembled in SA (Completed)
2015
Phase 1:  40 Imported Locos (Completed)

2014
2014 March 2014, Contract signed
Local Content & Supplier Development 

Localization Overview

Local Procurement Local Production

4.5 billion rand, in which, 3.95 billion  5.38 billion rand of critical


have been signed with 31 local suppliers  components will be manufactured
while 0.55 billion is in the process of  locally, which includes about 3 billion
RFQ and contract negotiation local content.

‐ Supporting complete supply chain build‐up;


‐ Improving capability of railway industry;

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Local Content & Supplier Development 
CSDP Overview
Achieved July 2016:
• Industrialization:  Direct and indirect industrialization investment about 180.5m Rand.
• Technology and IP transfer: Transferred more than 4,328 PCS drawings and technical specifications.
• Skills development: Trained more than 428 staffs in China and South Africa
• Job creation and preservation: Over 978 direct and indirect jobs created and preserved.

Local Content (declared: 60.53%) SD (declared: 70.01%)

43.5% 45.5%

56.5% 54.5%

Contracted To be contracted Contracted To be contracted

Note:
1. Contracted means value with signed procurement contract with local suppliers.
2. To be contracted means value to be signed with local suppliers or manufactured locally.

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Local Content & Supplier Development 

Further Solution

Pantograph
HV cubicle
LV cubicle

Drive Unit
Local production Cooling Tower

Traction motor
Traction Blower

Converter

CRRC and Transnet will set up a Joint Venture and invest about 700m Rand in South Africa to build up
critical components manufacturing capacity.
It is expected that the facility will be put into operation on November 2016.

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Local Content & Supplier Development 

Further Solution

Critical Components Manufacturing Center 
in Capital Park, Pretoria
Equipment delivered to SA

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Local Content & Supplier Development 

CRRC is building partnership with Transnet on revitalization of the railway industry.

CRRC Transnet Engineering

Engineering, Manufacturing, Testing and Commissioning, 
Quality Improving, Maintenance and Overhaul.

Continuous 
Capability Quality Management
improvement

SA Local Supply Chain
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Local Content & Supplier Development 
1 Ansys
2 Beaver
3 Bluegig
4 Boltfast
5 Booyco
6 Crabtree
7 DCD
8 Deochaba
9 DS Communication
10 EastNet
11 Engen
12 FNB
13 Henkel SA
14 Knorr
15 Marble
16 Microelettrica
17 Minus 40
18 Penbro
19 Radel
20 Scaw Metal
21 Siemens SA
22 Sigma
23 Sign Trends
24 Siyahamba
25 TagTronics
26 Timken SA
27 Transfire
28 Trustfire
29 Transnet Engineering
30 Vita Lubricants
31 Vortex

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Recommendation

Description Benefit

Transnet and CRRC win together on African 
• Increase export of South Africa
market. 
• Create more job opportunity
CRRC will integrate qualified South African  • Boost economic development of SA
suppliers to its global supply chain.

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CRRC Commitment

Development of South African Railway Industry through Win‐Win Partnership with Transnet.

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ThankYou

August 2016, CRRC

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