This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

South Africa Signs $5.8B Deal With Alstom Trains


JOHANNESBURG (AP) â¿¿ South Africa agreed upon a $5.8 billion deal Wednesday with French company Alstom SA to completely refurbish the nation's passenger trains, part of a 20-year plan to overhaul the rail system of Africa's biggest economy.

The Passenger Rail Agency of South Africa accepted Alstom's bid over other companies including Bombardier Inc., Switzerland's Stadler Rail AG, a Spanish firm and Chinese companies. The deal includes Alstom, partnered with a local company, building some 3,600 passenger coaches for the rail agency.

Officials with Alstom in Paris could not be immediately reached for comment Wednesday.

Currently, the rail agency has some 4,600 coaches operating across the country â¿¿ with much of it more than three decades old. The deal represents one of the biggest agreements made by the South African government since the end of apartheid in 1994 and seeks to improve rail to improve passenger movement across a nation where many of the poor cannot afford care transport.

The railway agency predicts some 8,000 jobs will be created locally by the deal. The agency hopes to build another 3,600 coaches as part of a second-phase of the project 10 years from now.

South Africa's Transport Minister Dikobe Ben Martins applauded the deal Wednesday, saying it would help modernize and improve the safety of the country's railroads.

"This process is much more than a train purchase, we are reviving our rail engineering sector, contributing to skills development and job creation amongst other bigger objectives," Martins said in a statement. "A long journey still lies ahead of us, we will walk with our fellow citizens and keep them informed."

While other African nations have allowed their colonial-era railroads to fall into disrepair, South Africa still has a strong industrial and passenger rail network that runs into neighboring countries. South Africa saw some of the first railroads built in sub-Saharan Africa in the 1860s, as miners exported the nation's diamonds and minerals abroad.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.19 -1.04%
FB $118.06 0.54%
GOOG $695.70 0.48%
TSLA $222.56 -4.20%
YHOO $36.00 -0.03%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs