Wabtec in Africa: Strong Roots Support Long-Term Growth, Success in Simandou

Soft Skills, Tech Prowess, and Local Commitment Prove Key in Massive Mining Wins

A strong tree shall always grow from the roots and not the seeds.

-- African proverb
 

Introduction

On July 30, 2024 and January 28, 2025, Wabtec announced two landmark locomotive orders, totaling over half-a-billion dollars, to support the Simandou project, a collaboration among the government of the Republic of Guinea and its business partners to mine the world’s largest untapped reserve of high-quality iron-ore.

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These orders represent one of the largest international orders in Wabtec’s history and mark a major breakthrough in Guinea’s decades-long efforts to transform its natural-resource riches into an engine for broad economic growth and social development.

That Wabtec won the entire locomotive order for this project, signing contracts with two separate consortia charged with executing it at the highest level, says a lot about the company’s growth in Africa. It also speaks volumes about Wabtec’s approach in the region, one combining patience and persistence (the Simandou opportunity has literally spanned three decades); demonstrated technical excellence; a track record of investing in Africa and its people; and dependably delivering value.

Leaning in

Wabtec traces its roots in Africa back to GE’s support of the continent’s earliest railroads more than 100 years ago. This century, the company has found success focusing on, and establishing roots in, Africa’s most concentrated areas of rail transport, including South Africa and Egypt.

Oso Babatunde, Corporate Vice President, Commercial Excellence at Wabtec, knows this recent history well – he experienced much of it firsthand, leading Wabtec’s business development in Africa for many years.

“I began my rail-industry journey in Africa for Wabtec (then GE Transportation) back in 2015, and our story on the continent has always been about being nimble and fearless in pursuit of the region’s most important, transformational projects,” he recalls. “We didn’t win every deal, but we always competed with integrity and learned from every experience about what it takes to succeed here and, more importantly, what it takes to help customers succeed.

“Our story on this widely diverse continent is all about leaning in – and learning.”

Seminal deals in South Africa and Egypt

“Our learning process here on the continent, one rooted in engagement and understanding the communities our customers serve, has led to some big takeaways that have dramatically impacted and improved our business strategy,” offers Mpilo Dlamini, Wabtec’s Regional Vice President of Sub-Saharan Africa. “The biggest of which is the realization that business here is more than transactional. Yes, our customers want our locomotives and services, but they also want our commitment, not just to products and technology, but to community and shared value creation.”

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One key manifestation of this “more than a transaction” ethos occurred in 2014 with Transnet, South Africa’s state-owned rail and port operator, which ordered 233 Evo Series locomotives from Wabtec as part of a $4 billion investment it made to overhaul an aging fleet.

The deal proved seminal in many ways. First, the contract was Wabtec’s largest on the continent at the time and elevated the company’s latest technology. Second, the deal provided Wabtec a critical showcase and proving ground for that technology and accompanying services, as well as for its way of doing business.

Case in point: while Transnet’s total order of 465 diesel electric locomotives was split between Wabtec and another competitor, Wabtec followed through in executing on its commitments as promised, delivering locomotives which are still running on Transnet rails today, a testament to the technology’s efficacy and durability.

And those trains continue to be serviced by local technicians trained by Wabtec to help Transnet optimize its investment over its lifetime, a goal further supported by Wabtec’s Johannesburg operations.

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A similar dynamic unfolded in Egypt. In 2017, Wabtec won a contract to provide 110 Evo Series locomotives to Egypt National Railways (ENR). And in 2021, the company won an additional contract to supply 100 Evo Series locomotives. These deals not only solidified Wabtec’s reputation as a leading freight and passenger rail provider on the continent, but also underscored the company’s commitment to the local economy, providing technical training to more than 275 local ENR engineers and employees.

Wabtec was not only winning new business in Africa, it was winning this business the ‘right way,’ one that Egypt’s Minister of Investment and International Cooperation described as ‘reciprocal’ in nature, benefiting all involved parties, especially the local community.

“One cannot underestimate the importance of establishing a legitimate local presence in Africa,” says Yoko Nadege, Wabtec’s Senior Sales and Proposal Manager, West/Central Africa. “I’m a good example of the kind of local commitment customers want to see from vendors here. Wabtec hired me because I’m highly skilled at what I do, and because I am African. Our customers want to see people like themselves on the other side of big, transformational deals, people who are going to be here tomorrow playing an active role in their future success.”

Staying present (and patient)

While Wabtec accrued new contracts and converts around the continent, one seemingly insurmountable summit remained tantalizingly in view: Simandou.

And, as political tides in Guinea ebbed and flowed, Wabtec established itself as a steady, dependable presence and objective advisor.

“Regardless of who controlled the government in Guinea and which international vendors had curried the most favor with those in power, Wabtec remained visible and available – over the course of decades – acting as a technical resource ready to help when and as needed,” says Babatunde. “Over the course of years of discussions with successive Guinea administrations and our own growing operational footprint and delivery successes across sub-Saharan and Northern Africa, we showed we were truly invested in Africa and could be trusted with a project as transformational as Simandou when the right moment came.”

That right moment came in the form of Guinea’s current government, which has prioritized developing Simandou in service of growing its economy and improving living standards for its people. While past administrations had correctly valued the vast stores of iron-ore in its mountain peaks, the new government brought a strong and exacting commitment to the executional underpinnings needed to turn a history of wishful thinking into a functional pit-to-port rail network.

But first it needed partners, partners it could trust.

Flexing its supply chain muscle

While Wabtec had built such trust through its high-integrity dealings in both Guinea and around the continent, its initial competitive bid for Simandou could have proven a dealbreaker.

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“The government of Guinea wanted the best of the best for Simandou, and that meant  ‘American engineered,’” remembers Christie Drabic, Vice President, Program Management at Wabtec. “Wabtec responded with a bid that fully honored that intent but also reflected its true cost. In short, we came in too high – way too high.”

What happened next changed everything.

“Instead of awarding to the lowest bidder, the joint venture managing the tender process hit the pause button,” continues Drabic. “Then they did something unexpected: they asked us, as rail experts, to offer an alternative solution that would work best within their budget, while maintaining the technical specifications required for Simandou.”

Wabtec went back to the drawing board and within a week came back with a winning proposal for a proven, high-performing locomotive that leveraged its global supply chain to put the company’s best foot forward while meeting customer expectations.

And that momentum carried forward. There would be no ‘splitting’ of contracts this time. Wabtec’s edge across every dimension of consideration – from advanced technology and services, to proven value and local commitment – proved too persuasive to resist and too compelling to ignore, helping it win the second contract.

“So many people have contributed to turning the Simandou opportunity into a reality, a true growth engine for the local community and people of Guinea,” said Dlamini. “I am very proud of the way Wabtec has continued to lean in and step up in Africa, highlighting with each conversation and each success that our interest here is more than transactional. Rail networks move more than goods and people; they move economies, they change lives.”