WILMERDING, Pa., Jan. 06, 2016 (GLOBE NEWSWIRE) — Wabtec Corporation (NYSE:WAB) has started deliveries of brake equipment to Alstom, which is building up to 3,600 transit cars for the Passenger Rail Agency of South Africa (PRASA). Under Wabtec’s contract, which is expected to generate revenues of at least $160 million over 10 years, it has provided 10 trainsets of brake systems for the cars, including brake control, bogie brakes and air generation.
Raymond T. Betler, president and chief executive officer of Wabtec, said: “This project expands our global product capabilities and footprint, provides aftermarket opportunities, and solidifies our presence in South Africa, where we are committed to growth. We’re also pleased to be working on this project with Alstom, a world leader in the supply of systems, equipment and services in the railway sector. As other countries around the world invest in their transportation systems, Wabtec expects to continue to play an important role.”
The PRASA project is part of a program to modernize and expand its commuter rail system in response to increasing ridership. Each single-deck train, consisting of six cars, will have the capacity to carry more than 1,200 passengers and travel at up to 120 km/h initially with future potential for up to 160 km/h.
As part of the project, Wabtec and other suppliers will expand operations in South Africa significantly to meet localization requirements. Wabtec plans to increase its local employment to support the project and to use procurement initiatives designed to meet the Black Economic Empowerment policies of the South African Government. Wabtec also expects to work with training institutes to develop skilled technical workers and engineering technicians for the rail sector.
Gibela Rail Transport Consortium, the South African joint venture led by Alstom which is executing the contract, will establish a manufacturing, training and engineering site in Dunnottar, South Africa. The company expects the project to create more than 1,500 direct jobs in the factory and more than 8,000 indirect jobs through the supply chain over the life of the project.
Wabtec Corporation is a global provider of technology-based products and services for rail and industrial markets. Through its subsidiaries, the company manufactures a range of products for locomotives, freight cars and passenger transit vehicles. The company also builds new switcher and commuter locomotives, and provides aftermarket services. The company has facilities located throughout the world.
Alstom: 61%; Ubumbano Rail: 30%; New Africa Rail: 9%