ANNOUNCED AS TEMPORARYNo
Public procurement localisation
The National Circular Number 2 of 2017/2018 designating the rail permanent way sector for public procurement was issued on 13 November 2017 and entered into force on 2 December 2017. The Circular designates minimum procurement localisation requirements for the sector and hereunder a number of goods under the Preferential Procurement Regulations, 2017, see related state act.
The minimum local content requirement on the rail permanent way sector procured by South African government entities must, in general, contain a local content threshold of 90%. Hereunder a minimum local content requirement of 100% is imposed on rails and rail joints, ballasts, ballastless, turnouts /switches and crossings, railway sleepers, rail fastening and accessories, as well as assembly and testing of fully built units, whilst railway maintenance of way plant and equipment is set at 70%. In this context, all primary steel related products and all castings and forgings related products in various materials must be manufactured and sourced locally when purchased by South African government entities for the assembly and manufacture of Rail Permanent Way Sector.
Additionally, the Circular in this context outlined that this is to support and sustain the: "existing local steelmaking capacity" and the "the existing local foundry industry and the creation of additional castings and forging capabilities".
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