Gibela is a South African rail company established to manufacture and maintain 600 new passenger trains for the Passenger Rail Agency of South Africa over 10 years. The company is structured with majority ownership by Alstom and minority ownership by two black empowerment firms. Gibela is building a new train manufacturing facility in Dunnottar that will employ 1,500 people and include a training center. The facility aims to achieve 70% local content in producing high-capacity trains to modernize South Africa's commuter rail system and revitalize the country's railway industry through skills development and local economic opportunities.

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AFRICA RAIL 2016
Marc Granger, CEO| Pre-Africa Rail | Sandton | 27 June 2016

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OUR JOURNEY
• Gibela is a South African rail company
• A consortium originally to tender for
the replacement of SA’s outdated
commuter rolling stock
• customer: Passenger Rail Agency of
South Africa (PRASA)
• deliver 600 cutting-edge
passenger trains (3 600 coaches)
over 10 years
• maintenance, spares supply,
technical support over 19 years
28 June 2016Africa Rail, Sandton 2

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CORPORATE STRUCTURE
• Structured to drive development and growth of BEE companies operating in the rail sector
• 61% Alstom Southern Africa Holdings
• 9% New Africa Rail: black-owned rail/infrastructure conglomerate
• 30% Ubumbano Rail: 100% black-owned
28 June 2016Africa Rail, Sandton 3

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OUR VISION
Lead the REVITALISATION of the South African railway sector
and become a CATALYST in PRASA’s endeavours to elevate
commuter rail as TRANSPORT MODE OF CHOICE for ALL people
in the urban areas
28 June 2016Africa Rail, Sandton 4

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PROJECT FACTS
28 June 2016Africa Rail, Sandton 5
• R51 billion manufacturing contract
• X’Trapolis Mega:
• first 20 being built in Brazil
• 580 in South Africa
• Purpose-built train manufacturing
plant under construction
• Manufacturing rate: 62 trains a year
• 10-year period

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THE X’TRAPOLIS MEGA TRAIN
• Alstom technology
• High-capacity metric-gauge train
• accommodates 1,200 passengers
in six coaches
• 120kmph (upgrade to 160kmph)
• Lightweight, stainless steel structure
• locally-sourced steel
• energy-efficient
• components 90% recyclable
• Spacious, modern design
• easy access for mobility-challenged
• LED lighting
• CCTV, WiFi
28 June 2016Africa Rail, Sandton 6

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MANDATE FROM PRASA
Ourmandatehasthreeparts:
Africa Rail, Sandton 7
Foster rail as preferred mode of commuter transport for all South Africans
Build new, reliable, safe trains for SA’s 2.3 million daily rail commuters
Revitalise SA railway industry
Support customer with maintenance operations for 19 years
Build manufacturing/parts/maintenance/ training facilities
Create jobs
Develop skills
Achieve > 65% local content
Promote black economic empowerment
Support communities
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28 June 2016

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ECONOMIC DEVELOPMENT MANDATE
Local content
Skill Development
Job creation
(black, women, youth)
Employment
equity
Preferential
procurement
Enterprise development
Socio-economic
development
Value added in-country using 70%local resources
Develop skills in the rail and related
local industries to create a sustainable
and competitive local rail industry.
19,500people to be trained
Jobs for South African citizens, black
people, black skilled, women, youth
Ensure equitable representation
Spend with B-BBEE compliant suppliers
Spend with BWOs, QSEs (R10m-R5m), EMEs
Create access to economy by black people
R800 million
investment in black SMMEs
to increase operational
and financial capacity
28 June 2016Africa Rail, Sandton 8

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LOCAL CONTENT OBLIGATIONS
• Targeting 70% local content at peak of
manufacturing
• Source local supplier network for materials,
components and services
• 47 contracts already in place
• 32 local suppliers provided components
for trains being built in Brazil
• Supplier development to enhance industrial
capacity in the manufacture of products,
redesigned to meet modern,
international standards
• Supplier Park complex to enable speed
of delivery of components
• supplier proximity to amenities set up
to elevate performance
928 June 2016Africa Rail, Sandton

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WORLD-CLASS MANUFACTURING FACILITY
• R1 billion manufacturing facility in Dunnottar
• 78 ha site
• Designed to highest international environmental standards
• Maintenance and engineering services
• Centre of train manufacturing excellence
• Maximum capacity by end 2019
• 1,500 people employed on site
28 June 2016Africa Rail, Sandton 10
• R1 billion train manufacturing facility
in Dunnottar
• 78 ha site
• Designed to highest international
environmental standards
• Maintenance and engineering services
• Centre of train manufacturing excellence
• Maximum capacity by end 2019
• 1,500 people to be employed
Training centre:
• 4 000m2
• to train 19 500 people
Testing centre:
• static test buildings
• 1.2 km test track
Manufacturing buildings
• 31 500m2

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CHALLENGES
• Technology
• 40-year technology gap to be addressed
• Volume
• 30 cars per month
• aggressive ramp-up
• Advanced manufacturing process
• 10 000 parts to assemble
• 250 industrial activities on site,
all interlinked
• Quality
• latest international standard
• ‘get it right, first time’critical
• Safety
• for employees, at all times
• zero harm
28 June 2016Africa Rail, Sandton 11

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WHAT WE HAVE ACHIEVED
28 June 2016Africa Rail, Sandton 12
2012 October 2013 April 2014 May 2014 July 2014 November 2014
Gibela
becomes the
preferred
bidder in
Prasa’s rolling-
stock renewal
project
R51 million
contract
signed with
Prasa for
supply of 600
commuter
trains
Contract
becomes
effective
First design
review
meeting
Official launch
of Gibela
South African
engineers
sent to France
for training
2015
Focus on
training, skills
and supplier
development

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WHAT WE HAVE ACHIEVED CONT’D
28 June 2016Africa Rail, Sandton 13
March 2015 July 2015 August 2015 December 2015 End 2015
Gibela hosts a
Supplier Day
to engage
with potential
suppliers
Firsttrain
manufactured
at Alstom’s
Lapa plant in
Brazil – built
with 20%
South African
content
Environmental
Impact
Assessment
approved
Water Use
Licence
approved and
site handed
over
First test train
arrives in SA
from Brazil
February 2016
Phased-in
construction
of Dunnottar
manufacturin
g plant begins
June 2016
Six trains
already
undergoing
testing in SA

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WHERE WE ARE GOING
28 June 2016Africa Rail, Sandton 14
October 2016 Q1 2017 Q2 2017 Q3 2018 2028
First train
delivered to
Prasa to
operate on
SA’s rail
network
First intake of
training
centre
apprentices
Start of
production of
first locally-
produced
train
First proudly-
South African
trains in
service
Manufacturing
completion
2035
Maintenance
contract and
project
completion

15. Page
AFRICA RAIL 2016
Marc Granger, CEO| Pre-Africa Rail | Sandton | 27 June 2016