Towards localisation

Localisation is one of the four pillars of Gibela’s Economic Development Policy. Accordingly, Gibela aims to develop a robust and sustainable local supplier base through leveraging its majority shareholder’s expertise in an effort to contribute to the revitalisation of the local railway manufacturing industry through the implementation of a comprehensive localisation plan. This plan includes the purchase of local raw materials and components in order to ensure maximum South African content and equipping established and emerging local rail enterprises with the capability to be globally competitive. The success of the rolling stock project is underpinned by Gibela’s efforts and ability to find the best synergies, using historical references and experience as a system integrator, together with the skills and capability of suppliers in the conception of optimal solutions and manufacturing standards of the highest quality.

Gibela will collaborate with global suppliers of rail components which are not currently manufactured in South Africa to establish a local base. The idea is to pair these international heavyweights with emerging local suppliers in joint venture partnerships to nurture the local supplier base and facilitate the all-important transfer of technology. The company has already recorded early success in expanding the capacity of local suppliers to enable them to deliver on the rolling stock contract. Gibela’s supply chain management and development strategy will be strengthened by the establishment of a 25 hectare supplier park adjacent to the facility where train components will be manufactured in close proximity to the plant in 2015.