FACT SHEET > South Africa has 2.3 million daily rail commuters > The Gibela project in South Africa is one of the largest rail projects in the world > Thousands of skilled jobs will be created > Q4 2015: delivery of first train built in Brazil It is important to understand that this is not a foreign purchase contract. As required by our customer, it is a contract located in South Africa that will involve and benefit South Africans Marc Granger, CEO of Gibela www.gibela-rail.com
ABOUT US Gibela is a South African rail company that will deliver 600 cutting edge passenger trains, comprising 3,600 coaches, into the South African rail network over the next 10 years. The company is 61% held by Alstom Southern Africa Holdings (Alstom), 9% by New Africa Rail and 30% by Ubumbano Rail, and is fully compliant with Broad-Based Black Economic Empowement (BBBEE) legislation. Gibela was established to tender for the R51 billion replacement programme of South Africa s outdated rolling stock, as well as to provide the expertise required to deliver a high-quality rail service to commuters. The company s customer, the Passenger Rail Agency of South Africa (PRASA), holds responsibility for commuter trains in metropolitan areas. It is replacing ageing equipment with a modern service that will offer a dignified, enjoyable journey and maximum transportation value for passengers. In commissioning the replacement programme, PRASA is executing its mandate in terms of the National Development Plan for 2030 which aims to achieve prosperity and equity for all South Africans. This involves improving national infrastructure, including public transport, and boosting the economy to create jobs. Gibela is headquartered in Johannesburg and its 70ha manufacturing facility will be established in Dunnottar, near Springs, in the Ekurhuleni Metropolitan Municipality of Gauteng, South Africa. The campus will comprise a 36ha integration/assembly site, a 10ha site for the manufacture of train components, and a 24ha supplier park. Gibela s rail project is expected to create 1,500 direct and thousands of indirect jobs at various stages in the supply chain over a 10-year period. Approximately 19,000 people, including engineers, artisans, technicians, train drivers and technologists, will receive training during the life of the project. In parallel to the manufacturing contract, Gibela will provide maintenance and technical support to PRASA over a 19-year period enabling the customer to achieve critical thresholds in its operations and maintenance as it converts from the old fleet to the new one. International track record of success Gibela, a rail company for the modern age, is proud of its South African heritage and of its global references enabled by its majority shareholder, French-based Alstom. Alstom is an internationally recognised leader in rail engineering and manufacturer of the world s fastest train. The conglomerate has had a presence in South Africa for over 100 years, providing more than half the content of Transnet s rail stock, while the majority of the electric locomotive fleet uses Alstom s traction technology. Alstom also provides a broad range of services and solutions in the power and energy sectors worldwide, and some 80% of South Africa s electricity is generated from Alstom turbines. The Alstom group employs 93,000 people in some 100 countries (550 in South Africa) and sets the benchmark for innovative and environmentally friendly technologies. As Gibela s majority shareholder and supplier, Alstom 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. 61% ALSTOM SOUTHERN AFRICA HOLDINGS 30% UBUMBANO RAIL 9% + 1 share NEW AFRICA RAIL GIBELA RAIL TRANSPORT CONSORTIUM (Pty) Ltd Current shareholders We are determined to offer South Africa the best of our technology and expertise through our joint venture, Gibela, and we are convinced that our trains will establish a high standard of quality to serve passengers Yvan Ériau, Managing Director, Alstom Transport South Africa 2 / Gibela Fact Sheet
Black economic empowerment (BEE) New Africa Rail (NAR), with a 9% shareholding in Gibela, is a black-owned dynamic rail industrial conglomerate 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 BEE participation in the Gibela project by driving maximum local procurement and will seek other investment opportunities in line with its business plan. 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. A new, world-class manufacturing facility IN SOUTH AFRICA PRASA has made a strategic decision to revitalise South Africa s once proud railway industry after decades of under-investment, which has led to the loss of skills, unreliable and outdated equipment, and the rendering of signal systems obsolete by international standards. However, the project is not simply a train replacement programme. In addition to delivering modern, safe trains to transform rail into the transport of choice, Gibela will act as a catalyst for transformation by addressing certain socio-economic challenges that beset the South African economy creating jobs, developing skills and uplifting the living standards of all those directly and indirectly affected by the project. The majority of the new rolling stock for the initial phase of the replacement project 580 trains comprising 3,480 coaches will be built at the Dunnottar manufacturing facility. The project plan involves developing the local manufacturing plant in parallel with the manufacture of the first 20 trains at Alstom s manufacturing facility in Brazil. This strategy serves the dual purpose of ensuring that South African artisans receive the necessary skills training at a customised facility, supervised by experienced artisans, as well as delivering the first batch of trains into service. 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. At the 70ha site in Dunnottar, train components will be manufactured by Gibela and its suppliers in adherence with the contract s local content commitments. A maintenance and engineering services centre, a training facility for railway-specific artisan skills and an engineering centre of excellence will also be located at the manufacturing facility. The facility will be at the cutting edge of rail equipment production and will, from the outset, be designed to be environmentally efficient including its use and recycling of water and power. Due to the high level of craftsmanship required in the manufacture and assembly of trains, the facility will employ mostly highly skilled and trained people. Gibela Fact Sheet / 3
LOCAL CONTENT The Made in SA, for SA Gibela is committed to ensuring 70% local content on the project once the manufacturing pace has stabilised. A network of existing suppliers is in place, including local contractors and international businesses that have expressed interest in the project. These will be incorporated into the local supply chain, creating new jobs and developing a vast array of railway skills in accordance with BBBEE and employment equity requirements. Local content will include main systems such as doors, brakes, air conditioning systems and pantographs, metalwork components, seats, glazing and carpets. South African raw material (steel) and other products ceilings, batteries and lighting fixtures will gradually be fed into the production process for the first 20 trains being built in Brazil. three major dimensions of the PRASA project are: delivering modern trains, developing an efficient local industrial plant and supporting South Africa s economic and social development Marc Granger, CEO of Gibela Alstom and its existing suppliers will localise and create joint ventures to nurture local suppliers and ensure that the transfer of technology is to international standards. Creating jobs and transferring rail sector skills The replacement of South Africa s rolling stock is a massive two-decade project that presents a unique opportunity to revitalise the South African economy, creating much-needed jobs. Although Alstom provides trains to countries around the globe, it is developing countries with emerging markets such as Brazil and India where the company has successfully implemented a localisation model which Gibela will replicate in South Africa. In Brazil and India, the incountry facilities have been developed by training artisans abroad under the supervision of more experienced teams who have themselves become specialists and gone on to create their own centres of excellence. In the longer term, it is expected that the revitalisation of the South African rail sector will not only transform and revolutionise rail transport in this country but that it will also become a centre of excellence on the continent, and a preferred choice for railway supplies for countries in sub- Saharan Africa. 4 / Gibela Fact Sheet
Maintenance contract Gibela has also signed a 19-year Technical Support and Spares Supply Agreement (TSSSA), providing for maintenance, the supply of spares and technical support, with PRASA. This will ensure fleet reliability and availability in the five regional metro fleets (South/North Gauteng, Cape Town, Durban and the Eastern Cape) between 2016 and 2035. The support teams at each depot, and a 24/7 Hotline, will be in place to ensure the metro trains offer a safe and reliable mode of transport as part of PRASA s ambitious railway modernisation programme. 76,000km of copper cable will be required for the 600 trains manufactured by Gibela Human resources The PRASA contract specifies the clear transfer of human skills and technological know-how a commitment that Gibela has endorsed wholeheartedly. The company s South African operations will largely depend on skilled workers. And building those skills will include upskilling for the people who join the company. An initial group of 12 engineers has already left South Africa for specialised technical training in France over an 18-month period. They will be followed by hundreds more over the next few years. A number of local quality engineers have also benefited from training in quality diagnostics and the development of technologies used in modern trains. Likewise, two-thirds of Gibela employees have and continue to receive discipline-specific training and orientation at Alstom Transport in France. The company recognises that attracting and retaining talent will be demanding. But these are skills that motivate people, particularly those attracted to a technologically advanced project that is unique by global standards and which will contribute to improving the lives of the country s burgeoning urban population. Developing skills, transferring know-how Gibela will work with tertiary institutions, training centres and SETAs to develop rail-related skills and provide bursaries and the vocational support necessary to ensure the sustainability of South Africa s rail sector in the long term. Supporting communities In addition to the provision of new jobs and opportunities, the rolling stock project is poised to introduce a broad range of social benefits that will benefit a number of communities. Training and upskilling programmes will be supported by basic education (literacy, numeracy, language skills) as well as adopt-aschool programmes and structured projects to promote maths, science and technology at both secondary and tertiary levels. Rail-related bursaries will be made available to support identified talent and rail safety awareness. Sport (provision of facilities, coaching, sponsoring competitions), primary community health initiatives (including drug rehabilitation) and the provision of transport subsidies and loans to promote home ownership are among Gibela s other socio-economic development priorities. Supporting new and established South African businesses Gibela is developing a sizeable network of local suppliers that will form part of the supply chain; providing materials, components and services for the trains and the ongoing maintenance, management and servicing of the rolling stock. Gibela Fact Sheet / 5
THE X TRAPOLIS MEGA TRAIN a South African first The X Trapolis MEGA (MEtric GAuge) is a spacious, state-of-the-art train that benefits from Alstom s decades of technological expertise in suburban rail transport around the world. The train has not only been designed with safety and security in mind, but also the need to provide a regular, reliable and on-time service for South Africa s 2.3 million rail commuters, a number that is expected to double within the next 20 years. This high-capacity metric-gauge train has been developed to accommodate South Africa s 1.067m gauge rail tracks. It can accommodate up to 1,200 passengers in six coaches, although the modular design permits adjustments for periods of higher and lower demand. The train travels at speeds of up to 120kmph with the ability to upgrade to 160kmph and complies with the latest international safety requirements, including an anti-crash system that is designed to protect the driver and passengers in a collision. The light-weight X Trapolis MEGA train, with a stainless steel structure, consumes significantly less energy than any other standard train. Its components are 90% recyclable and the energy-saving features, including regenerative braking, will allow for a 30% reduction in energy consumption compared to the best of PRASA s current fleet. This will allow the new trains to operate at a world best-in-class level. It includes redirecting the energy generated by braking back into the train s power network, thereby reducing carbon emissions and operating costs. There are four variations* of this single-deck, eco-design train, all built to the same high technical specifications. The exterior aesthetic, with its gentle contours, exudes quiet elegance while its energetic and robust urban character expresses efficiency. The X Trapolis MEGA is air-conditioned and passengers will enjoy real-time information and Wi-fi internet access on board (Metro Express trains). An efficiency monitoring system will ensure the trains are reliable and run on time. * These are the Metro 3kV (no toilets), the Metro 3kV (with toilets), the Metro Express 3kV (no toilets) and the Metro 25kV (no toilets). Each coach has three wide double doors on each side which provide commuters with easy access, particularly those who are mobilitychallenged. The interior is spacious and allows plenty of room for passengers to move easily while large exterior windows, together with a combination of LED lighting options, provide a bright, welcoming space with lots of natural light. The gangways are wide and unobstructed and ensure uninterrupted views down the train, enhancing security. On the Metro version of the train, the seating benches are suspended and the absence of floor supports makes cleaning easier. Overhead luggage racks, large ergonomic toilets (some trains), seating grips and CCTV are among the features that take passenger safety and comfort into account. 6 / Gibela Fact Sheet
Board of directors Monde Vusumuzi Africa / Non-executive Director MBA, Gordon Institute of Business Science Monde has an economics and strategic marketing background with extensive experience in building global brands in emerging markets. & Management DIRECTORS Mzi Dayimani / Non-executive Director LLB, University of Stellenbosch Mzi is an admitted attorney and Notary Public (South Africa) and is General Counsel at the National Empowerment Fund. Marc Granger Reg Engelbrecht Mardochée Elgrishi Yvan Ériau / Non-executive Director MBA, Institut Francais de Gestion Yvan is the Managing Director of Alstom Transport Southern Africa (ATSA) and a veteran of the transport sector with 34 years of senior executive experience. Buyiswa Mncono-Liwani Pierre-Henri Paulet Mbulelo Qodashe Stéphane Guy Pamella Radebe Gibela is about enthusiasm and passion and creating a lasting legacy for this country Mbulelo Qodashe, Human Resources Director Management team Marc Granger / Chief Executive Officer Engineer, Ecole Nationale Supérieure des Arts & Métiers, France MBA, Haute Etudes Commerciales, France Marc has spent over 20 years with Alstom and has extensive experience in rolling stock, product design, marketing, project tenders and management and has successfully launched railway projects around the world. Reg Engelbrecht (CA, SA) / Deputy CEO and CFO BCom Hons (Accounting), University of South Africa Reg has spent six and a half years with the Alstom Group. Prior to this he spent time with Londonbased Lloyds TSB Bank, Axa and Waco International. Mardochée Elgrishi / Deputy General Manager and MSA Project Director Electromechanical Engineer, Paris, France Mardochée has more than 35 years of experience at Alstom Transport and has headed up a number of rolling stock projects during his career. Buyiswa Mncono-Liwani / Economic Development Director DPhil (Management of Technology and Innovation), Da Vinci Institute Buyiswa has more than 16 years experience with multinational companies in economic development, enterprise development and transformation. Pierre-Henri Paulet / Site Managing Director MSc Electronic Engineering, Institut National Polytechnique de Lorraine Pierre-Henri s experience in supply chain, the operation of rolling stock components and manufacturing has been achieved during a 30-year career spanning several continents. Mbulelo Qodashe / Human Resources Director MM (Human Resources), Wits Business School Mbulelo has extensive human resources experience from industries as diverse as mining, engineering, hospitality, retail and fast-moving consumer goods. Stéphane Guy / Maintenance Project Director Double BA Hons (European Business Administration), CESEM and ESC Reims Group, France and Middlesex Business School, London, UK Stéphane has 25 years of experience at Alstom and has set up a number of profitable railway service businesses, including greenfield operations. Pamella Radebe / Communications Director BJourn Hons (Media Studies), Rhodes University Pamella s 20-year career has provided her with invaluable experience in all facets of corporate communications and investor relations in the mining, telecommunications and power sectors. Pascal Roze / Sourcing Director MSc Mechanical Engineering, Reims University, France Pascal has over 25 years of experience in project management, costing and sourcing in the automotive and railway industries. Pascal joined Alstom Transport in 1999 leading the sourcing activities of the first generation X Trapolis trains. Gibela Fact Sheet / 7
Trains are about people, about craftsmanship and skills development Pierre-Henri Paulet, Site Managing Director FACTS The replacement of South Africa s rolling stock will take place in two phases over 20 years: > Phase 1: The R51 billion Gibela project will replace 600 trains, comprising 3,600 coaches, within a 10-year period Contact information Pamella Radebe Tel: +27 11 518 8232 Email: pamella.radebe@gibela-rail.com Gibela is led by ALSTOM and incorporates local partners Ubumbano Rail and New Africa Rail. > Almost 1,050 X Trapolis trains already operating in Chile, Spain and Australia > The X Trapolis MEGA train travels at 120kmph, but can upgrade to 160kmph > The X Trapolis MEGA train has a modular design and can be reconfigured as required to suit demand www.gibela-rail.com 07/14/1 Disclaimer GIBELA 2014. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited. 8 / Gibela Fact Sheet