Transnet signs R400 million deal with Mozambican operator

State-owned rail engineering company Transnet Engineering (TE) and Mozambican state-owned railway operator Caminhos De Ferros De Mocambique (CFM) have signed a rolling stock supply agreement valued at more than R400 million. Under the terms of the agreement, TE will supply 300 freight wagons to CFM.

The wagons will be manufactured at the TE Bloemfontein centre, creating local supply opportunities. The deal is part of efforts to strengthen regional integration and the revitalisation of the Mozambique railway industry.

At the core of the agreement is the manufacture, supply and delivery of 300 high-sided Gondola-type freight wagons to CFM. This transaction follows an earlier successful delivery by TE of over 300 locally manufactured freight wagons to CFM in December 2019.

TE says this repeat purchase by CFM further strengthens the business relationship between the two entities and is a demonstration of CFM’s confidence in TE’s manufacturing capabilities as an independent original equipment manufacturer.

TE CE Ralph Mills says TE’s long-standing partnership with CFM is a source of great pride for TE, especially the opportunity to meaningfully contribute to Mozambique’s programme of action, igniting economic opportunities and providing support to CFM recapitalisation project.

The successful conclusion of this agreement with CFM is part of a bigger narrative of Transnet’s vision to grow its footprint in Africa, and showcase TE as a serious player in rolling stock manufacturing in sub-Saharan Africa.