Sanral, Wirtgen SA sign MoU to collaborate on construction development goals

22 October 2018

Roadconstructionequipment supplier Wirtgen GroupSouth Africa (Wirtgen SA) and the South African National Roads Agency Limited (Sanral) on Friday signed a memorandum of understanding (MoU), which Wirtgen SA MD Heinrich Schulenburg said would cement the relationship between the entities and give action to both their development support goals.  

“Through Sanral’s procuring power they play a huge role in transforming the construction industry. With help from original-equipment manufacturers such as Wirtgen, . . Sanral [can] achieve its 2030 vision strategy goals,” he noted.

In signing the MoU, both parties declared their commitment to collaboration and the joint development of South African roads, to support emerging contractors and contribute to transforming the construction industry, giving small enterprises better access to road construction machinery needed to execute major Sanralprojects.

The agreement will afford small to medium-sized construction contractors full access to Wirtgen’s full suite of equipment brands, as well as financing, training and logistics. “Equipment is a major success factor for contractors. If contractors are not well equipped, the country also faces the danger of substandard road infrastructure,” said Sanral chief engineer Louw Kannemeyer. 

Wirtgen SA is a subsidiary of Germany’s Wirtgen Group, owned by US-based John Deere, a prominent global equipment supplier for the agriculture, turf, forestry  and construction industries. Wirtgen Group manufactures and supplies earthworks, roadbuilding and surface mining equipment, as well as providing services on site, applications consultingworkshop servicesand training workshops for customers.

Wirtgen Group has 55 subsidiaries worldwide, with a combined yearly turnover of around €3-billion. Wirten Group is a significant global supplier of road milling machines. Sanral employs 400 people nationally, with all maintenance and construction outsourced through open tender processes that become available to the private sector.

“These kinds of MoUs are not exclusive agreements with suppliers to make use of them. It is not an agreement where Sanral will be buying equipment; what it is, is an alignment of synergies of stakeholders in the industry, to enable smaller contractors to compete in a more open and transparent environment, ensuing better competitiveness,” Kannemeyer explained.

“The intention of the MoU is to open up opportunities for smaller contractors and to provide access to training opportunities for operators.” This is the third such MoU concluded between Sanral and industry participants. 

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