RITES wins $18 million South Africa loco deal

RITES shares jumped 6% after bagging a $18 million order from Talis Logistics, South Africa to supply overhauled locomotives. 

Overhauled locomotives are old trains that have been repaired, upgraded, and made fit to run like new again.

The deets: the order covers in-service cape gauge ALCO diesel-electric locomotives, renewed and ready to roll. The project adds to RITES’ growing export pipeline, with dispatches lined up for South Africa’s rail network.

In-service cape gauge ALCO diesel-electric locomotives are used train engines, built for South Africa’s narrower tracks, that run on diesel fuel to power electric motors.

Why it matters: this is a part of a bigger story of how India is becoming Africa’s go-to rail partner. From locomotives to coaches, Indian firms are shipping out railway muscle. Just last year, India announced plans to export 150 locomotives to Guinea in a ₹3,000+ crore deal.