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Progress Rail, Barloworld On Track In South Africa

Posted on July 25, 2012

Caterpillar’s Progress Rail Services and South Africa’s Barloworld Ltd. have announced a joint venture that will produce Electro-Motive Diesel (EMD) railway locomotives in South Africa.

Electro-Motive Diesel Africa (Proprietary) Ltd. will provide rail and transit customers in South Africa and neighboring countries with locomotive products and services, including access to advanced diesel engine and emissions technology. No financial details were provided.

Sibani Mngomezulu was named chief executive of the joint venture company. No manufacturing location has been announced, but various sites are being evaluated, the company said. “We could move pretty quick” said Progress Rail Services and EMD CEO Billy Ainsworth.

Although some components will be imported, localization will be a key part of the program, Ainsworth said. “Our goal is to do as much as we can in South Africa,” he said, adding that the company aims to benefit from the fact that a number of South African companies already form part of the supply chains of other Caterpillar group companies. Ainsworth also said the joint venture was dedicated to more than the South African market.

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