This document summarizes opportunities for localizing procurement within PRASA, the passenger rail service of South Africa, as part of their strategy to improve financial position and become the top public transport operator by 2015. It identifies opportunities for localizing procurement of rolling stock vehicle subsystems like carbodies, bogies, propulsion, and auxiliaries. It also notes opportunities for localizing procurement of infrastructure items like crossings, turnouts, points, and sleepers. The document discusses potential barriers to localizing procurement like the heavy engineering characteristics required, feasibility, and organizational risk appetite. It suggests consultancy services could help with asset management, systems, and integration to enable localization opportunities.

1. PRASA – FEASIBLE OPPORTUNITIES
FOR LOCALISATION
Presentation to UNIDO Rhythm
Working Group Meeting, 20 Oct 2010
Ingwa Sichula

2. PRASA’S HOLISTIC STRATEGY
PRASA’s Holistic Strategy: Transform into a
commercially viable entity and position to become the #1
public passenger operator in high-volume corridors in
RSA by 2015 (source – PRASA Annual Report, 2009/10)
One of key drivers: Improvement of financial position
One key element of this driver: work
lean (incl. drive cost of inputs down,
efficient sourcing & procurement) 2

3. SITUATIONAL CONTEXT –
Key Stakeholders Purposeful Interplay
Empowerment/
% BBBEE
spending
PRASA
3
Strategic sourcing & promotion of BBBEE: % BBBEE spending at 77.2% in 2009/10 Financial Year (source PRASA
Annual Report

4. INHERENT LOCALISATION OPPORTUNITIES
Asset Development (modernisation) / Service Excellence
(Effective management)
4

5. INHERENT LOCALISATION OPPORTUNITIES
Rolling Stock
Vehicle Sub-systems
•Carbody
•Bogies & running gear
•Power supply
•Auxilliaries
•Propulsion
•Braking
•Interiors
•Control & communications
•Specials
5

6. INHERENT LOCALISATION OPPORTUNITIES-
Rolling Stock
Carbody
•Body structure
•Exterior & interior aesthetics
•Couplers
•Gangways
•Window units/rubber components
•Body additions
6

7. INHERENT LOCALISATION OPPORTUNITIES-
Rolling Stock
Bogies & Running gear
•Bogie structure
•Suspension
•Wheel (set)
•Traction link
•Bogie additions
7

8. INHERENT LOCALISATION OPPORTUNITIES-
Rolling Stock
Propulsion and Auxiliaries
•Traction gears
•Traction motors
•Auxiliary machines
•Climate control
8

9. INHERENT LOCALISATION OPPORTUNITIES-
Infrastructure
Crossings
Turnouts
Points/switches
Sleepers
9

10. INHERENT LOCALISATION OPPORTUNITIES-
Consultancy Services
Consultancy Services
Catalyst:
•modernisation and service excellence
(incl.seamless integration of the public transport)
Areas
•Asset Life Cycle Management
•Systems
•Systems integration
10

11. BARRIERS TO ENTRY
What barriers to entry?
• heavy engineering characteristics?
•opportunity?
•feasibility and risk appetite?
•transmicity?
11

12. END