Alstom: A contract worth 51bln Rand1 in South Africa

  Alstom: A contract worth 51bln Rand1 in South Africa

  PRASA and Gibela (led by Alstom) sign historic agreement for the supply of
                         modern commuter trains in SA

Business Wire

LEVALLOIS-PERRET, France -- October 14, 2013


PRASA (Passenger Rail Agency of South Africa) signed today a contract with
Gibela^2 - a joint venture led by Alstom (Paris:ALO) to supply 600 passenger
trains (3 600 coaches) to be delivered between 2015 and 2025. The contract is
worth R51 billion and includes the construction of a local manufacturing
facility. In addition to this contract, Gibela will provide technical support
and supply of spare parts over an 18-year period. This project is one of the
biggest in rail transport worldwide and is the largest contract ever signed in
Alstom’s history. The contract was signed by PRASA Group CEO, Lucky Montana,
Alstom Chairman and CEO Patrick Kron, and Henri Poupart-Lafarge, President of
Alstom Transport.

The contract is part of PRASA’s aim to revitalise the rail industry, create
jobs and provide efficient, reliable and safe public transport. This ambitious
programme was launched by the South African government in 2010 to respond to
the growing number of commuters in the country. The programme will replace the
ageing suburban trains in service in Pretoria, Johannesburg, Cape Town and
Durban, with 1 200 electric trains over a period of 20 years.

PRASA and Gibela will now proceed with the process of reaching financial close
at the end of December 2013.

Speaking on the occasion of the signature, Lucky Montana said, “The PRASA
fleet renewal programme is the catalyst for the transformation of Metrorail^3
services and public transport in South Africa as a whole. It is the beginning
of the roll-out of government’s comprehensive rail programme. While the urgent
challenge to improve passenger services remains primary, the rolling stock
programme has been designed to achieve government’s objectives of developing
skills, creating jobs and delivering quality services to citizens.”

“Alstom is proud to have been selected by PRASA for a project of this
magnitude. We are fully committed to mobilising the best of our technology and
expertise through our South African joint venture Gibela and we believe our
trains will set a high standard in serving the interests of commuters,” Henri
Poupart-Lafarge said.

PRASA will be supplied with X’Trapolis Mega, the new X’Trapolis train
developed by Alstom to fit the 1.067 metre gauge in South Africa. The train
can travel at speeds of up to 120 km/h with the ability to be upgraded to 160
km/h. Each single-deck train is composed of six cars and is able to carry more
than 1300 passengers. Thanks to the modularity of X’Trapolis, PRASA will be
able to adjust the configuration of the train depending on the number of
commuters (from 4 to 6 cars with the option of having the set coupled). The
train is equipped with air conditioning, ergonomic seats, real-time on-board
information, Wi-Fi internet access and a combination of direct and indirect
lighting to increase the feeling of space. Additionally, it includes an
enhanced door system to provide better accessibility for passengers with
reduced mobility and full-length connecting gangways for improved fluidity.
With a 95% recyclability rate, the X’Trapolis sets a high standard in
environmental sustainability. Additionally, the stainless steel car body-shell
reduces the weight of the train and its electrical braking capacity enables a
significant reduction in energy consumption.

PRASA, through the rolling stock programme, is in the process to procure
approximately 7224 new rolling stock with a projected investment of 123
Billion Rand over a period of 20 years. The procurement of the rolling stock
is being done in two phases, with the first phase of the programme being
launched today. Gibela is contracted for the first 10 years.

Gibela will build a manufacturing site in Ekurhuleni, east of Johannesburg, to
produce the trains in South Africa. The manufacturing facility will also house
an engineering center and a training facility. Construction is scheduled to
start in early 2014 and the factory is due to come on-stream in 2015. The
project will create over 1500 direct jobs in the local factory and 33,000
indirect jobs over the first 10 years, achieving a local-content level of over
65%. The first 20 trains will be manufactured in Lapa, Brazil. Alstom’s French
sites Ornans, Tarbes, Villeurbanne and Saint-Ouen will be involved in the
project over the long term.


PRASA was formally established in December 2008, when the President signed the
Legal Succession Act into law. This completed the consolidation of the various
entities (Metrorail, Autopax, Shosholoza Meyl and Intersite) into PRASA from
what were the South African Rail Commuter Corporation and Transnet. PRASA has
17000 employees, 76% of which are employed by Metrorail.


About Alstom

Alstom is a global leader in the world of power generation, power transmission
and rail infrastructure and sets the benchmark for innovative and
environmentally friendly technologies. Alstom builds the fastest train and the
highest capacity automated metro in the world, provides turnkey integrated
power plant solutions and associated services for a wide variety of energy
sources, including hydro, nuclear, gas, coal and wind, and it offers a wide
range of solutions for power transmission, with a focus on smart grids. The
Group employs 93,000 people in around 100 countries. It had sales of over €20
billion and booked close to €24 billion in orders in 2012/13.


^1 As of October 11, 2013, 51bln Rand is around €4 billion.

^2 61% Alstom; 9% for New Africa Rail and 30% for Ubumbano Rail which is the
hosting entity in the National Empowerment Fund (NEF) for the BBBEE (Broad
Based Black Economic Empowerment) partners, the Gibela and PRASA Employees
Trust and the Educational Trust.

^3 Metrorail is a division of PRASA which operates all the passenger trains in
South Africa.


PRASA press contact:
Moffet Mofokeng, +27718608500
Alstom press contacts:
Virginie Hourdin / Isabelle Tourancheau, +33 1 41 49 21 36 / 39 95
(Alstom Transport HQ)
Linda Huguet, + 33 1 57 06 10 42
(Alstom South Africa)
Kobie Hyman, +27 115188217
Alstom investor relations
Delphine Brault, Anouch Mkhitarian, +33 1 41 49 26 42/25 13
Press spacebar to pause and continue. Press esc to stop.