Transnet Freight Rail says the total contract is worth 50 billion rand, or about C$5.16 billion.
Bombardier's announcement didn't disclose how much its share of the contract is worth but a spokesman said the company will supply 240 electric locomotives.
In total, Transnet said it's buying 599 electric locomotives from Bombardier and CSR Zhuzhou Electric and 465 diesel engines will be supplied by General Electric and CNR Rolling Stock.
Montreal-based Bombardier (TSX:BBD.B) said it will build all its Traxx Africa design locomotives in South Africa.
"This implies investments in local manufacturing capacity, training and further improving the skills development of local employees, while working with local partners to achieve the same objectives," Bombardier said in its statement.
The Canadian company, which is more involved in passenger rail equipment and commuter systems than freight equipment, has been in South Africa since 1995.
Bombardier and its consortium partners have been involved in providing trains and signalling systems for commuter services in the Johannesburg-Pretoria region and a modernization of the rail control system in the main corridors around Durban, South Africa.