GURUGRAM: RITES Limited, a leading Indian transport infrastructure consultancy and engineering firm, has secured a major international order from Ndalama Capital (Pty) Ltd., South Africa, strengthening its presence in the African railway sector. The contract involves the supply and commissioning of Cape Gauge ALCO Diesel Electric Locomotives, marking a significant milestone in RITES’ export-driven growth strategy.
The company formally disclosed the development to the National Stock Exchange (NSE) and BSE Limited in accordance with the SEBI Listing Obligations and Disclosure Requirements (LODR) Regulations.
Contract Scope and Key Details
The order pertains to the delivery of specialized railway rolling stock designed to meet the operational and geographical requirements of South Africa’s rail network.
- Nature of Order: Supply and commissioning of “In-Service” Cape Gauge ALCO Diesel Electric Locomotives
- Gauge Specification: Cape Gauge (1,067 mm), the standard rail gauge used across Southern Africa
- Contract Value: USD 35.2 million (approximately ₹293 crore)
- Execution Timeline: 18 months
- Contract Basis: CIF (Cost, Insurance, and Freight), with RITES responsible for delivery and insurance up to the destination port in South Africa
Strategic Importance of the Order
The selection of Cape Gauge locomotives is particularly significant, as this gauge dominates railway operations across Southern Africa. The use of ALCO-type diesel engines, known globally for their rugged design, operational reliability, and ease of maintenance, makes them well-suited for demanding rail conditions.
This contract highlights RITES’ technical expertise in delivering customized railway solutions and its growing credibility in competitive international markets. The company also clarified that the transaction is purely commercial in nature, with no promoter interest or related-party involvement.
Positive Market Response
Following the announcement, RITES shares witnessed positive movement on Indian stock exchanges. Market participants view the $35.2 million order as a strong addition to the company’s international order book and a reaffirmation of its strategic focus on higher-margin overseas consultancy and rolling stock supply projects.
About RITES Limited
RITES Limited is a Navratna Central Public Sector Enterprise under the Ministry of Railways, Government of India. The company provides end-to-end consultancy services in transport infrastructure, including railways, highways, ports, airports, and urban transport. With a presence in several countries across Asia, Africa, and the Middle East, RITES has established itself as a trusted global player in transport engineering and project management.
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