The journey of Tractionel over the past four decades has been a testament to adaptability, innovation, and resilience. What began in 1982 as a company rooted in the rail sector has transformed into a leading electrical engineering contractor covering all of South Africa’s energy challenges. The company has become one of South Africa’s pre-eminent HV contractors being able to address its clients’ requirements in interconnectivity grid works from IPP substations through to Eskom 400kV transmission grids.
Neresh Pather explains that Tractionel initially focused on the rail industry specializing the electrification of rail systems (OHTE), for freight (TFR) & Metro Rail / PRASA as well as private sidings for the mining industry. One of the company’s landmark achievements was its involvement in the Gautrain project—Africa’s first light rail system. Within this project, Tractionel was responsible for the design, supply, install, test & commissioning of the entire electrification of the Gautrain Rail system (OCDS), and even today the company still performs all maintenance activities on the Gautrain OCDS system.
As South Africa’s rail industry experienced a slowdown, the company recognized the need to diversify. In 2012, Tractionel pivoted toward the energy sector, focusing particularly on independent power producers (IPPs). “This transition came at a critical time when the country was experiencing a surge in renewable energy projects,” says Pather. “There was a need for a contractor with experience in the local power sector, a contractor that understood the Eskom space.”
Tractionel was ideally placed to get involved in high-voltage interconnectivity works-harvesting power from wind and solar farms, building substations, and constructing distribution and transmission lines to connect to Eskom’s grid. By 2013, the company was deeply embedded in the energy sector, providing engineering, procurement, and construction (EPC) services to major power producers.
Entering the Next Stage of Development
A transformative milestone occurred in 2021 when Tractionel was acquired by the Enza Group, a move that provided the company with the resources and strategic vision to expand its operations. With new investments in personnel and technology, Tractionel evolved from a contractor to a full-scale EPC service provider.
“Becoming part of Enza Group resulted in a dramatic increase in the size of the business as well as an expansion of the skill base to include a diverse team of engineers, quantity surveyors, legal experts, and project managers. This enhanced the company’s ability to manage complex, large-scale projects, from engineering and equipment procurement to installation and commissioning.”
“Working with multinational companies allowed us to increase our footprint and our capability. Today, we handle projects ranging from 100 million to 1.5 billion Rand, specializing in high-voltage transmission lines and substations. We have achieved ISO accreditation in environmental management, quality control, and occupational health and safety, and we have grown into areas where we now can compete on value.”
Tractionel is currently delivering one of South Africa’s first large-scale main transmission stations (MTS) to be developed by the private sector. “Set for completion by the end of the year, our MTS project is a few months ahead of other comparable initiatives,” says Pather.
With Eskom traditionally maintaining a monopoly on grid infrastructure, this flagship project represents a significant shift in the industry, with Tractionel leading the way in private-sector participation in critical national infrastructure.
Furthermore, Tractionel’s recent accreditation as an EPC provider on Eskom’s National Transmission Company of South Africa (NTCSA) panel opens new avenues for future projects in the 400kV transmission space, both as a contractor for the NTCSA, and as a service provider to international operators that are looking to enter the market, says Pather.
Commitment to Social Responsibility
As South Africa shifts from a reliance on fossil fuels to renewable energy, companies like Tractionel must balance innovation with socio-economic realities. Many South African towns are economically dependent on coal mining and fossil fuels, making a rapid shift to renewables politically and socially sensitive.
Neresh Pather, who became the Group CEO only in July 2024, is well aware of the need to combine technical achievements with social responsibility. With a background in civil engineering and consulting, he worked for global companies such as Mott MacDonald and Enza, and assumed leadership roles in industry bodies like Consulting Engineers South Africa (CESA) and the International Federation of Consulting Engineers (FIDIC).
He is set to make sure that Tractionel thrives under his leadership while supporting local communities. “Tractionel maintains a strong commitment to social responsibility. With a permanent workforce of over 300 employees, we also provide temporary employment to local labourers, often increasing our staff count to 600 during peak projects. This employment model supports local economies and fosters skills development in underserved communities.”
“Aside from employment, we also sponsor local sports initiatives, including Cycle Nation, the Lions cricket team in Gauteng, and the Roodepoort Football Club. These programmes promote community engagement and encourage employees to participate in healthy, community-driven activities,” he says.
Future Aspirations
He further affirms that looking ahead, Tractionel aims to expand its capabilities in the 400kV and 765kV transmission sectors. To this end, the company has started to invest in specialized equipment and infrastructure to meet the demands of larger-scale projects.
Additionally, utilising the collective strength of the Enza Group and under the strategic umbrella of Crowie Holdings, Tractionel is well-equipped to embrace the opportunities that lie ahead. The Group aspires to become an equity participant in future transmission infrastructure, transitioning from a service provider to an owner-operator, leveraging its local presence and expertise. “Few companies truly understand the regulatory landscape of South Africa’s transmission sector, which was historically controlled by Eskom,” notes Pather.
“While the industry is now opening up to private sector participation, the grid and networks will remain under a regulated entity. With our extensive experience working alongside Eskom and within the regulatory framework, as well as our strong South African presence and proven track record, we are a valuable partner for international companies entering the market.”
With a strong foundation in engineering excellence, a commitment to community development, and a clear vision for the future, the company is poised to play a pivotal role in South Africa’s energy transition, standing ready to power the next chapter of progress.
