Grenupp

GREATER NIGEL UNITED PEOPLESPARLIAMENTSAYS:
PRASA RAIL STOCK ROLL-OUT PROJECT MUST PROVIDE PROPER EDUCATION, TRAINING, and EMPLOYMENT & BETTER SERVICE DELIVERY FOR GREATER NIGEL & SURROUNDING AREAS !!!!
INTRODUCTION

As part of the Prasa contract, Gibela will build a R1-billion manufacturing site in Dunnottar, 10 km north of the town of Nigel, to produce the 580 trains, which will be manufactured in South Africa.

The 600 000 m2 manufacturing facility is also designed to house an engineering centre and training facility.

“South Africa has always had its own rail industry capacity, but because of almost 35 years of underinvestment in the rail system, the engineering and design capability, as well as the capacity to integrate, have been lost, says: CEO of Prasa Montana.

“As we embarked on this programme, we wanted a technology partner; we wanted the trains to be built here and we wanted South African engineering firms as part of the global supply chain in the rail sector. It is very important for us that we have this factory established here.”

Prasa and Gibela promise that the project will create more than 33 000 direct and indirect jobs over ten years, achieving local content of more than 65% on the rolling stock.


Gibela will train an estimated 19 000 people, including artisans, technicians, train drivers, over the life of the project.
The Gibela deal forms part of Prasa’s bigger rolling stock programme, which aimed to procure 7 224 new coaches at the projected cost of R123-billion over 20 years.

Gibela is 61% held by Alstom, 30% by Ubumbano Rail and 9% by New Africa Rail.

Alstom, an internationally recognized leader in rail engineering has had a presence in South Africa for over 100 years. Transnet's rail stock contains significant Alstom content and the majority of the fleet uses Alstom's traction technology. Alstom also provides a broad range of services and solutions in the power and energy sectors worldwide, including South Africa.

The Alstom group employs 93,000 people globally, and as Gibela's majority shareholder is ideally placed to share its expertise in suburban rail transport in the South African context, transferring skills and decades of technical knowledge to the local workforce.

Ubumbano Rail is a black-owned consortium holding 30% of Gibela, with the shares temporarily ‘warehoused’ by the National Empowerment Fund (NEF). Ubumbano Rail is made up of a number of companies that are keen to enter the rail sector space as suppliers. The three commercial entities in Ubumbano Rail are Khipunyawo Rail, whose members have been active in the rail sector for over 10 years; the Elgin-Identity Rail Corporation, an entity whose members have, among other things, heavy fabrication capabilities and wheel refurbishment accreditation; and Community Rail, new entrants to the rail sector.

Other shareholders in Ubumbano Rail include the PRASA Employee Share Option Trust (ESOP), the Gibela ESOP and an education trust. Gibela therefore has a black ownership structure in place that ensures its compliance with South African empowerment legislation.

New Africa Rail (NAR) is a new and dynamic rail entrant created to drive the process of rebuilding Africa through rail. NAR is focused on infrastructure projects including rail, ports, signalling systems, rail logistics, energy efficient technologies and rail real estate. NAR will ensure the participation by black South Africans in the Gibela project by driving maximum local procurement and will seek other investment opportunities in line with their business plan.
Shareholding
The Elgin Group shareholding comprises the following:
•Majority Shareholder: Jeany Industrial Holdings(Pty) Ltd - owned by Ian Donjeany (CEO of Elgin Group) and Lee Donjeany (COO of The Elgin Group)
•National Empowerment Fund – A catalyst of Broad based Black Economic Empowerment (BB-BEE) in South Africa which promotes black economic equity and transformation
•Sothern African Enterprise Deveopment Fund - US and African based private equity investor with investments throughout Sothern Africa
•The Elgin Group Management
Established in October 1994, the Southern Africa Enterprise Development Fund (SAEDF) is an initiative of the Former President William Jefferson Clinton of the United States, Former President Nelson Mandela of the Republic of South Africa, and the US Congress for the specific purpose of providing funding to stimulate the creation and expansion of small and medium-size indigenous businesses throughout southern Africa.

The R123 billion programme has been split into two 10-year contracts.

The first contract, valued at R51bn, was awarded last year to the Gibela Consortium, made up of French company Alstom and local company Actom.

More than 60 percent of all the train components will be locally produced, creating up to 33 000 direct and indirect jobs.

The 30 percent BEE stake will be held by three consortiums which together will hold 17 percent of the deal, an educational trust (3 percent) and an employee trust (10 percent).

The three consortiums are:

* Community Rail Services, which is made up of “a number of people with disabilities”, black female youths, Parmtro Investments and Kaelo Investments.

The directors include Anna Mokgokong, a businesswoman who is founder of Community Investment Holdings, a multibillion-rand company with interests in mining, pharmaceuticals, technology and logistics, and Mokganyetsi Sithole, a director at NKWE Platinum, a resources company which is listed on the Australian Securities Exchange.

She is married to the ANC chief whip in the City of Johannesburg, Bafana Sithole.

The third director is Esther Letlape, an award-winning businesswoman who has worked in human resources at major South African companies such as Sappi and Sasol and is a director at PetroSA.

* Khipunyawo Rail, a black-owned enterprise already involved in the rail sector and made up of SA Freight Logistics, and Autism South Africa.

SA Freight Logistics is headed by businessman ThamiGwala, who is also a majority shareholder in the company.

He is the president of the Railroad Association of South Africa and SA Freight Logistics was one of the first BEE companies to obtain a Train Operator Railway Safety Permit from the Railway Safety Regulator.

* Elgin-Identity is a black investor enterprise. The consortium includes the Durban-based Elgin Engineering, Identity Capital Partners, which is a women-headed investment firm, and the Disability Empowerment Concerns Trust.

Elgin’s active directors are listed as chief executive Lee Donjeany, chief operating officer Ian Donjeany and managing director Vincent Chetty.

Identity lists its shareholders as well-known businesswomen Sonja Sebotsa, Polo Radebe (the former chief director of BEE at the Department of Trade and Industry) and Nedbank chief financial officer Raisibe Morathi.

Our concerns is that at NO stage has the community being briefed on this Project and there has been no communication and involvement with the community at large

We are not aware of any Community impact studies that have been conducted. We are aware of the Draft Scoping Report – the community was not able to participate due to a lack of awareness – this could be due to the manner in which the communication was delivered.

Our communities are poor (most households do not have a regular income – statistics will verify this), we have several challenges with social ills such as BULLYING, GANGSTERIZM, VCRIME, VIOLENCE, SEXUAL ABUSE, TEENAGE PREGNACY, SCOOL DROP-OUT, SUICIDE etc. – UNEMPLOYMENT is very high especially amongst the Youth – this is relevant to all race groups – Blacks Coloured, Indian and White within the Greater Nigel community.

We would therefore demand ALSTOM, PRASA, GIBELA and Others to engage with us and include us in the process of creating a public awareness campaign about the DEVELOPMENT this Project would bring to the Greater Nigel community, one, two involvement in the construction development of the Project- this process falls within both organizations CSR and Enterprise Development policies. If applied according to these policies your investment in South Africa can have an incredible impact on the lives of many, many, many people.

Issued by: Greater Nigel United Peoples Parliament (GRENUPP).
86 Kreef Ave. Cerutiville, Nigel 1490
Tel: 011 403 2329/3029
Fax: 086 245 9627
E-mail: goldenmiles@webmail.co.za
Cell: 0839675742

BUILDING DEMOCRACY & DEVELOPMENT TO MAKE LOCAL COMMUNITIES WORK BETTER FOR ALL.