In one of the biggest government deals ever awarded by South Africa, Alstom will build 3 600 new train coaches to help overhaul the country's creaking rail network.

Several firms had bid for the R51bn contract, including Canada's Bombadier, Spain's CAF, Switzerland's Stadler Rail, China North Rail and China South Rail.

The chief executive of the Passenger Rail Agency of South Africa, which awarded the contract, told reporters the deal was expected to create about 33 000 jobs.

South Africa is on a drive to improve public transport to the millions of poor who are without cars.

The contract is the biggest rail deal currently in the works anywhere in the world, according to one industry source.

With acknowledgement to Reuters and News24.