Mov ing Matt e r s
I
n a not entirely unrelated matter, Navistar International
Corporation announced on April 30th that it would “continue to
focus on parts and service support for its International trucks in
South Africa”. It went on to say that the company was assessing a
number of potential business options, including the possible sale of
its local NC² operation.
For the record, Navistar/International/NC² has not recorded the
sale of any new trucks in South Africa since the third quarter of
2013, having ceased production at the Apex assembly operation
(see article above) earlier in that year. Like many others involved in
the local transport business, we found it quite incomprehensible
that a truck brand that has been present almost continuously in
South Africa since the early 1920’s could just seemingly drift out
PRASA’S New
Commuter Trains
O
n April 26th, the Passenger Rail Agency of South Africa
(PRASA) reached commercial closure on a deal with
Gibela Rail Transportation to acquire 600 commuter train
sets, consisting of 3 600 power cars and carriages, over a ten year
period. The deal, initially signed in Octiober, 2013, will be worth
R51 billion, and it was noted that Gibela’s shareholders include
Alstom (61%), New Africa Rail (9%) and Ubumbano Rail (the
hosting entity in the National Empowerment Fund -30%).
The initial 20 train sets are to be manufactured at the Alstom Lapa
plant in Brazil, with the first completed set due to arrive in South
Africa by the fourth quarter of 2015. Thereafter, the balance of the
of the market with no obvious explanation. We were quite aware
of the difficulties that the parent company had experienced in
North America, relating to EPA2010 emissions compliance for its
MaxxForce diesel engine range, and its need to consolidate its
business “back home”, but the local operation had been selling
around 100 extra-heavy trucks each month not that long ago, and
was, obviously, a very substantial business.
Since then, there have been a number of rumours concerning
a local revival of the International brand, some suggesting the
formation of joint ventures with unnamed partners. However, the
lack of hard news must be hugely concerning to local operators
who built solid businesses around International trucks, and it is
no wonder that the other American truck brand present in South
Africa, Freightliner, has seen its sales volumes grow. As the
weeks, and months pass by, the task of maintaining the value
of the International brand locally is sure to become ever more
challenging.
order will be executed at a new R1-billion 600 000 m² manufacturing
plant to be established at Dunnottar, creating more than 33 000
direct and indirect jobs. The trains will contain a local content level
of 65%, with components sourced initially from some 35 local
suppliers. Dunnottar, a small town in South-Eastern Gauteng, is best
known as the previous home of the South African Air Force’s Central
Flying School, and is situated close to Nigel, where Union Carriage
and Wagon built much of the motive and rolling stock currently
employed by Transnet and PRASA.
The new X’Trapolis Mega trainsets will each consist of
six single-deck cars with a combined capacity of more
than 1 300 passengers, and be capable of speeds of up
to 120 km/h. They will be equipped with air conditioning,
ergonomic seats, Wi-Fi Internet access, and a passenger
information system, and will operate on the 1 067 mm
gauge rail network that is still prevalent in Southern Africa.
Nissan’s plans were rapidly executed, and, on April 25th,
the Nissan Group of Africa announced that it had completed
assembly of its first Nigerian product, a Nissan Patrol station
wagon. It was also announced that the company’s Almera
passenger car, and NP300 pickup would be built in Nigeria,
with production ramping up in the May-August 2014 period.
n December/January’s Auto Alert, we reported on the
The good news, for South Africa, was that assembly kits for
announcement that the Renault-Nissan Alliance, together with
the NP300 bakkie are to be sourced from Nissan’s Rosslyn
the Stallion Group, were planning to set up a vehicle assembly
plant, situated north of Pretoria. The Nigerian operation
plant in Lagos, Nigeria. At the time, we commented that this may
supports Nissan’s strategy to double its African sales
have been an indication that Nissan, along with other manufacturers
volume, which stood at 110 000 units at the end of the
present in South Africa, were feeling less than comfortable about
2012 fiscal year. By moving rapidly into the Nigerian space,
future prospects in this country. In our view, these companies would
the company is sure to gain a significant local marketing
have first considered expansion of their well-established South
advantage from the recent duty imposition, and other
African operations as the logical next step in gaining critical mass
manufacturers will, no doubt, be obliged to follow Nissan’s
in Africa, but their perspective on the local situation, with particular
regard to its troublesome industrial relations, had prompted a re-think example. The South African government,
and local organised labour, need to study
of African strategy. Since then, it ha