Indian railway equipment manufacturer Texmaco Rail has secured a $135 million order to supply diesel-electric locomotives to South Africa, strengthening the company’s position in the country’s expanding rail freight market.
The order was awarded by South African entities Tsiko Africa Logistics and Barberry Holdings and covers the design, manufacture, supply and commissioning of diesel-electric locomotives.
According to the company’s stock exchange filings, Texmaco will supply Wabtec ES43ACi locomotives, each with a 4,500-horsepower diesel-electric power system.
The agreement builds on an expanding relationship between Texmaco and South African rail operators and logistics companies as the country seeks to strengthen freight rail capacity and modernise its ageing rail infrastructure.
Order Builds on Earlier South African Deal
The latest contract follows a major order announced in May 2026, when Texmaco received a Letter of Award from a South African train operating company for more than 2,235 freight wagons across several variants, together with 30 diesel locomotives.
That earlier contract was valued at more than Rs 4,045 crore and included a proposed 15-year maintenance partnership.
Tsiko Africa Logistics and Barberry Holdings established their partnership to develop rail freight capabilities supporting Tosaco Energy’s oil, gas and renewable energy projects and customers.
The companies are seeking to provide an end-to-end logistics solution covering different stages of the supply chain, increasing the potential role of rail in the movement of bulk commodities and industrial goods.
South Africa Manufacturing Plans
Texmaco has also been linked to plans for establishing a locomotive manufacturing facility in South Africa.
The proposed investment forms part of a broader agreement reportedly valued at about $425 million and could support the development of local manufacturing capabilities while contributing to the country’s rail infrastructure modernisation programme.
Local production could also create opportunities for technology transfer, maintenance services and the development of supporting supply chains around the rail sector.
Rail Reforms Open Further Opportunities
Texmaco said ongoing rail reforms in the region could create additional opportunities for international and local companies.
The development of an open-access framework for rail freight is expected to encourage greater investment in wagon supply, locomotive upgrades and maintenance services, alongside wider rail infrastructure projects.
For South Africa and the broader Southern African region, increased rail investment could improve freight capacity and provide businesses with additional options for moving commodities and manufactured goods.
For Texmaco, the latest order expands its exposure to a market where rail modernisation and freight-sector reforms are creating demand for locomotives, wagons and long-term maintenance services.