Unitrans’s Megabus procures first Scania Euro 6, CNG buses, Tetra 4 to supply local gas

From Creamer Media in Johannesburg, this is the Real Economy Report.

Sashnee Moodley:
Unitrans’s subsidiary Megabus has procured ten Scania, 280 horsepower, 100% compressed natural gas buses. Megabus will trial these buses for the next five years at its Free State operations. Mia Breytenbach tells us more.

Mia Breytenbach:
These buses comprise the first Euro 6 bus engines in Africa.

The official handover of the buses was concluded in conjunction with Scania’s first South African Sustainability Seminar in Kempton Park, which was held in Gauteng, in May.

Unitrans technical director Leon Nelson explained the requirements for these buses.

Unitrans passenger technical director Leon Nelson:

Mia Breytenbach:
The ten buses will operate from the Megabus depot in the town of Virginia and service the mining industry. These buses will undergo testing in terms of downtime, fuel consumption and maintenance costs for a comparison with their diesel equivalents.

Unitrans passenger technical director Leon Nelson:

Mia Breytenbach:
Nelson noted that if the results would be promising, Unitrans and Megabus would look further into the potential of these buses and their alternative fuel technology.

Unitrans passenger technical director Leon Nelson:

Mia Breytenbach:

Scania South Africa alternative fuels key account manager Anthony King:

Mia Breytenbach:
The gas for the buses will be sourced from a Free State natural gas resource. This resource is currently being developed by Renergen subsidiary Tetra 4.

Renergen acquired Molopo South Africa Exploration and Production (now known as Tetra 4) in November 2015 in a deal valued at R650-million.

Construction of the compression facility is complete and with initial gas having been compressed, marking the first major step towards creating an energy efficient gas economy in the Free State.

The CNG compression station will process about 210 GJ of natural gas a day. These will then be stored in 40-foot tube containers, known as skids.

These skids will be transported to the Megabus depot and connected to a dispensing station to dispense the gas from the cylinders to the bus CNG tanks.

Megabus and Tetra 4’s contract for the supply of the CNG marks the first sales of locally produced onshore natural gas, according to Renergen CEO Stefano Marani.

Renergen CEO Stefano Marani:
 

Mia Breytenbach:
Scania also handed over a Scania biodiesel truck, which would operate in Cape Town and a 2X4, 270 hp ethanol-powered distribution vehicle, which would operate in Durban, to respective customers.

Scania South Africa alternative fuels key account manager Anthony King:
 

Sashnee Moodley:
Other news making headlines this week:

Brexit deals 'resilient' South Africa a new complication
And, South Africa should ensure small business participation through JVs and FDI investments

As the UK’s decision to withdraw from the European Union sent ripples of uncertainty and volatility across an already unsteady global economy, Finance Minister Pravin Gordhan has moved to assure the public of the country’s strong trade ties and resilience.
Finance Minister Pravin Gordhan:
 

South Africa has to find ways of ensuring that small businesses participate actively in the global market, not just through export facilitation, trade exhibitions and market access opportunities, said Small Business Development Minister Lindiwe Zulu.
Small Business Development Minister Lindiwe Zulu:
 

Sashnee Moodley:

That’s Creamer Media’s Real Economy Report. Join us again next week for more news and insight into South Africa’s real economy.