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Grindrod locomotives launch spares and technical support Partnerships

17th June 2016

  

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In addition to the core business of manufacturing locomotives for shunting and main line operations, locomotive manufacturing, refurbishment and maintenance company Grindrod Locomotives is further expanding its offering to include a continent-wide spare parts supply business, says Pretoria-based Grindrod Locomotives COO Leon Broom.

'With a significant footprint in Africa, Grindrod Locomotives intends leveraging on this presence by partnering with various rail operations to provide stores management and supply chain support.'

In Africa today, fleets of locomotives are sometimes well over 40 years old and keeping these older fleets operational can be quite challenging, especially with regard to the supply of spares and components necessary for their maintenance. Grindrod's main thrust is to seek out strategic partnerships with rail operators on the continent, whereby the stores / supply chain function is outsourced
to Grindrod, which will ensure that stock levels are maintained at acceptable levels.

Thereby, the company will ensure that the main revenue earning component of the business, the locomotive, is available to operations to haul loads and generate an income.

'Throughout railway operations in sub-Saharan Africa, and elsewhere, one comes across forgotten locomotives standing idle for months, while either waiting on spare parts to be delivered or funds to be made available to have the locomotive repaired. When one thinks about the cost of the locomotive purchase, one realises how much value is being lost with the locomotive not being productive,' continues Broom.

Grindrod Locomotives already has a presence as far afield as Sierra Leone, where locomotives are maintained and supported by Grindrod technical staff.

'Our aim is to seek out medium- to long-term partnerships with African rail operators that would justify the investment in spares and components necessary to ensure that, for the most part, locomotive availability levels are raised to acceptable levels. Our teams would [aim to] fully understand the customer's locomotive fleet, get a measure of their current stocks of spares, gauge the general condition of their fleet and fully understand the maintenance history of each locomotive. Arising from this study, a full and comprehensive plan [would be] articulated and submitted detailing the proposed stock holding of critical and maintenance spares.

'A further offering to potential partners would be the refurbishment / rebuild of existing failed components on the various sites, which would then form the basis of a unit exchange programme for the customer. Africa is full of stores filled with failed components that we at Grindrod are able to rebuild / repair for a fraction of the new or replacement cost.'

With the ability to access these discarded components, Grindrod Locomotives can undertake the refurbishment of these parts, and carry them as a stock holding pending demand.

'It makes time and financial sense to have our technical team on site managing the repair and maintenance elements with stock to hand, in addition to having the technical know-how available to reduce locomotive downtime, thereby saving the customer money while creating operational efficiencies.

'We would invest in the supply of the spares and components and we would also assist in the identification of what spares and critical components are needed. Our added value comes from the premise that we are a leader in the logistics business, and we are able to source parts and components from various of our global suppliers, and have the financial muscle to put spares and components into the stores, which we will manage on their behalf,' emphasises Broom, explaining that Grindrod Locomotives can, thereby, ensure
that its customer's major asset their R20-million locomotive is not standing idle because they do not have the needed $200 part.

The biggest benefit to partnering with the company is clearly locomotive availability, he adds. 'If your business is moving goods and your primary mode of moving those goods is your locomotive, and it is not working, then you have no business. If your locomotive is available, then you have the tools for a profitable business operation.'

Broom says it is Grindrod Locomotives' objective to improve locomotive availability by improving the availability of spares and critical components to its customers. 'It makes sense to partner with a company that can supply the spares where they are needed and when they are needed. This is what Grindrod Locomotives offer.'

Edited by Creamer Media Reporter

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