Since the decision of the AU, in January 2015, South Africa has been working on developing a Concept Note to become the manufacturing hub for rail stock. The decision presents some exciting possibilities and challenges, as a whole, and its rail manufacturing industry in particular. A critical objective of the AU decision is to re-industrialise and revitalise the Rail Engineering sector in South Africa, the SADC region and the continent. SA has historically played a critical role in heavy maintenance, refurbishment and conversions as well as the upgrade of existing locomotives, wagons, coaches and components, including wheel refurbishment. Additionally, manufacturing facilities already exist across the country.There are currently six factories in SA where there is capacity to manufacture 4000 new wagons and refurbish 3000 wagons per year. It also has capacity to build over 500 locomotives and refurbish 300.