Challenges and developments facing SA Coal Logistics

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Challenges and developments facing SA Coal Logistics
“Challenges and developments facing SA Coal
Logistics”

IHS Energy SA Coal Conference
1 February 2019   Mandisa Mondi, General Manager: Coal BU - Transnet Freight Rail

                                                              Transnet Freight Rail is a division of Transnet SOC Ltd Reg no.: 1990/000900/30 An Authorised Financial   1
                                                                                                                                        Service Provider – FSP 18828
Challenges and developments facing SA Coal Logistics
Overview

 SA Competitiveness

 The Transnet Business and Mandate

 The Coal Line: Profile

 Export Coal Philosophy

 Challenges and Opportunities

 New Developments

 Conclusions

                                      Transnet Freight Rail is a division of Transnet SOC Ltd Reg no.: 1990/000900/30   2
Challenges and developments facing SA Coal Logistics
SA Competitiveness: Global Reserves

          Global Reserves (bt)      Global Production (mt)   Despite large reserves of coal that remain across
                                                               the world, electricity generation alternatives are
  USA              1      237.29        2      906
                                                               emerging and slowing down dependence on coal.
  Russia           2      157.01        6      357
                                                                    European countries have diversified their
  China            3       114.5        1       3,87
                                                                     energy mix reducing reliance on coal
  Australia        4       76.46        3       644                  significantly.
  India            5       60.6         4       537                 However, Asia and Africa are still at a level

 Germany           6                    8                            where countries are facilitating access to
                           40.7                 185
                                                                     basic   electricity   and   advancing   their
 Ukraine           7       33.8        10       60
 Kazakhstan                                                          industrial sectors, and are likely to strongly
                   8       33.6         9       108
                                                                     rely on coal for power generation.
 South Africa      9       30.1         7       269          South Africa remains in the top 10 producing
 Indonesia         10      28           5       458            countries putting it in a fairly competitive level
                                                               with the rest of global producers.
Source: World Energy Council 2016
Challenges and developments facing SA Coal Logistics
SA Competitiveness : Coal Quality

           Country                 Exports            Grade             Heating value             Ash                 Sulphur
                                   (2018)
USA                                 52mt                B               5,850 – 6,000             14%                  1.0%
Indonesia                          344mt                C                  5,500                13.99%
Australia                          208mt                B               5,850 – 6,000             15%                  0.75%

Russia                             149.3mt              B               5,850 – 6,000             15%                  0.75%

Colombia                            84mt                B               5,850 – 6,000             11%                  0.85%

S Africa                            78mt                B               5,500 - 6,000             17%                  1.0%

                                                 South Africa’s coal quality is graded B , the second best coal quality in the world and
Grade                Calorific Value Range (in
                     kCal/kg)
                                                   compares well with major coal exporting countries globally.
A                    Exceeds 6200
B                    5600 - 6200                 SA largely produces two types of coal i.e. bituminous and anthracite coal.

C                    4940 - 5600
                                                 Bituminous is generally used for power generation, as evidenced by the biggest
D                    4200 -4940
                                                   global exports destinations such as China, India, Pakistan, Netherlands, etc.
E                    3360 - 4200
    Source: Global Coal
Challenges and developments facing SA Coal Logistics
SA Competitiveness : SA Position

          Southern Africa can position itself to benefit from coal demand growth in the East

                                                                       Transnet Freight Rail is a division of Transnet SOC Ltd Reg no.: 1990/000900/30   5
Challenges and developments facing SA Coal Logistics
SA Coal Production Allocation

                                                                                  SA Production
                                                                                      269mt

                                  Exports                                                                                SA Demand
                                   79mt                                                                                    190mt
                                   (30%)                                                                                    (70%)

                 18.87
                  26%

                                              35.29     Electricity generation   Petrochemical    General industry
                                                                                                                     Metallurgical (Mittal)   Merchants
         3.14                                  48%              62%                 23%                 8%
          4%                                                                                                                 4%                 3%

         6.73
          9%             9.37
                         13%

         India    Pakistan      South Korea      Netherlands      Other
Challenges and developments facing SA Coal Logistics
Significant coal reserves in neighbouring Botswana – strengthening
Regional growth potential

                                                       Botswana Institute for Development Policy
                                                       Analysis (BIPDA) : The Coal Industry and the
                                                       Future of Botswana 2012
                                                        Botswana has considerable coal deposits,
                                                         one of the largest untapped potential
                                                         reserves in the world at over 212 billion
                                                         tonnes, 77% of which remains in the
                                                         ‘hypothetical’ and ‘speculative’ categories.
                                                        It has been estimated that as much. as
                                                         two thirds of Africa’s coal resource is
                                                         found in Botswana
                                                        Four commercially significant coal deposits
                                                         at Morupule, Mmamabula, Sese and
                                                         Mmamantswe on the eastern edge of the
                                                         Central Kalahari Karoo Basin have been
                                                         explored to a point where it is possible to
                                                         conclude that an export industry of at
                                                         least 36Mt/a growing to as much as
                                                         90Mt/a is possible.

                                                                                                  7
Challenges and developments facing SA Coal Logistics
Transnet: Custodian of ports, rail, pipelines

                                                            South Africa Government          100% ownership

                                                                Transnet SOC Ltd

                               Rail                                   Ports                    Pipelines             Specialist Units

          Freight Rail             Engineering        National Ports                             Pipelines             •Transnet
                                                                          Port Terminals
             (TFR)                    (TE)              Authority                                  (TPL)               Capital
                                                                               (TPT)
                                                         (TNPA)                                                        Projects
      Owns and operates         Engineering and     Owns       and     Cargo handling     Owns & operates
                                                                                                                       (TCP)
       South Africa’s rail        maintenance          manages     the     services.           RSA’s petroleum         •Transnet
       network.                   services.            ports in South     16        Cargo     & gas pipeline          Property (TP)
      20 500 km of              Support to TFR       Africa.             terminal            infrastructure          •Transnet
       railway track.             for rolling stock   8     commercial    operations         17,2 billion litres     Foundation
      General       Freight      maintenance.         ports.              across 7 SA         of       petroleum      (TF)
       and 2 heavy haul                                                    ports.              products through
       export lines.                                                                           38,00km
                                                                                               pipelines.
                                                                                                                                        2
Challenges and developments facing SA Coal Logistics
Transnet’s critical role in furthering South Africa’s developmental objectives
  Transnet’s mandate, vision, and mission
                                                                     •     Assist in lowering the cost of doing business in South Africa, enabling economic growth and
                                                                           ensuring security of supply through providing appropriate (port, rail and pipeline)
               Mandate
                                                                           infrastructure in a cost-effective and efficient manner
                                                                     •     Strategic objectives are aligned with national plans and the SSI

                                                                   • Fuelling Africa’s growth and development as the leading provider of
              Vision                                                 innovative supply chain solutions.

               Mission                                            • Linking economies; connecting people; growing Africa!

    Public value creation
                                                                   •     SOEs have to balance economic, social and other objectives by remaining financially
                                                                         sustainable, while creating value for citizens and society
                                                                   •     The “Inclusive wealth” of a country includes the sum of three kinds of assets:
                                                                         - manufactured capital (e.g. roads, machinery, buildings)
                                                                         - human capital (people’s health and skills)
                                                                         - natural capital (e.g. forests and fossil fuels)
                                                                   •     Creating public value is linked to Transnet’s mandate
    In response, Transnet is actively refreshing its brand as it moves into new markets, expanding its service offering, and
    redefining its market position
              SSI = Statement of Strategic Intent, SOE = State-owned Enterprise ;
              Source: Transnet Corporate Plan 2017/2018, PwC State-Owned Enterprises Catalysts for public value creation April 2015, http://inclusivewealthindex.org
Challenges and developments facing SA Coal Logistics
Transnet Freight Rail: largest Operating Division in the Transnet Group

                                          The largest Railway in
                                          Africa and the Middle East

                                                                       Freight Rail transports ~15% of the
              Employs ~27 679 people                                   nations freight tonnage annually

                                          Transnet Freight Rail            Owns and maintains a network
            Transports ~4.5mt per week                                     of ~22 000 route km

                                                                            Moved 219.1 million tons in the
               Serves ~450 key accounts                                     2016/17 financial year
                                                                            Moved a record 227mt in 2014/15

                                          Operates ~1 200 trains per day                                      4
MDS : Core Strategies and Objectives
  2018/19 is the last Year of the 7 Year Strategy

   Goal : Top 5 Railway - Financially sustainable, Integrated Logistics Service Provider, Innovative, Employer of
              Choice, World Class Customer Service, Gold Standard Operations and Capital Execution

                                                     Transnet Strategy
                                                             Core Strategies
   Market               Operational              Capital                      Regional
 Development             Efficiency            Investment                                               Safety                  People
                                                                             Integration
                                                               Objectives

 To build market                                                                                                         To develop skills
                      To improve
  reputation &         performance           To create capacity                                                          To create
  credibility          productivity and       ahead of demand            To develop an            To build and           sustainable
                       operational                                          integrated Regional     maintain a healthy     employment
 To increase                                To maintain,
                       efficiency                                           rail system with        and safe working       opportunities
  market share                                upgrade and                   economic growth         and operations        To transform the
 To develop a        To contribute to a     modernise the rail            opportunities           environment
                       reduction in the       system                                                                       business to a high
  customer centric
                       cost of logistics                                                                                   performance
  culture
                                                                                                                           culture

                                                   Financial Sustainability                                                              11
Transnet operates an integrated network and is a logistics leader in the
region – World Class Pit to Port Coal Exports

                                                                                                 1. Richards Bay
                                                                                                 Bulk (export coal,
                                                                                                 magnetite, chrome),
                                                                                                 breakbulk

                                                                                                      KZN PORTS

                                                                                         2. Durban
                                                                                         Containers, breakbulk,
                                                                                         agri-bulk, automotives
                   7. Saldanha
         Bulk (export iron ore),                                             3. East London
                     breakbulk                                               Containers, breakbulk,
                                                                             agri-Bulk, automotives
                 6. Cape Town
                    Containers,                                 4. Ngqura
                                                                                EASTERN CAPE PORTS
                     breakbulk            5. Port Elizabeth     Containers
                                          Containers, breakbulk,                                                       12
           WESTERN CAPE PORTS             bulk, automotives
The Coal Line: Profile

        Distance          +/- 748km from Blackhill to Richards Bay
                          o Descends from 1700m altitude to sea level
      Topography
                          o Undulating topography and high rainfall

       Axle loads         26 t/axle on heavy haul and some feeder lines

                          1:100 North of Ermelo
     Ruling Gradient      1:160 for loaded trains South of Ermelo on one of the two
                          tracks, and 1:66 for empties

                          3kV DC: North of Ermelo
        Traction
                          25kV AC: South of Ermelo

                          137 bridges, 37 tunnels
          Civil
                          Overvaal tunnel = 4 km (single)

        # of lines        Double, 3rd line on some feeder sections
      Authorisation       Colour light signalling with CTC

                          o 7E/11E on AC, 10E on DC sections
      Locomotives         o 110 AC/DC 19E in operation
                          o 100 new AC/DC 21E in production

        Wagons            CCL gondola: max payload of 84 tons

   Gross tons per train   22 000 tons at 2,2km in length

   Volumes in 2017/18     77.016 Mtpa export coal

        Capacity          95 Mtpa (81 Mtpa export coal; 14 Mtpa general freight)
    Competitiveness       Most affordable global coal transporter
Coal Line Operating Model – a World Class model for Heavy Haul
Operations

                                                                            Operating Philosophy
                                                                               Rolling Stock – 21&19E AC/DC Locomotives provide required tractive
                                            Soutpansberg                        effort; Reduce cycle time in change over yards & increase reliability and
                                                                                availability of the locomotive fleet
                  Waterberg
                                                                               North of Ermelo 100 wagon, 3kV DC network ;

                                       Steelpoort              Phalaborwa
                                                                               South of Ermelo 200 wagon, 25 kV AC network
                                                                               Train Configuration and Technology : ECP / WDP: Electronically
Rustenburg
                                                                                Controlled Pneumatic braking system & Wire Distributed Power Increase
                                                                                capacity; Improve train handling; Improve turnaround time; Increase Safety
                                         Ermelo                                 margins
                                                                               Jumbo Wagons – Capacity 84 tons/wagon and 16 600 Tons/Train of 200
                                                                                wagons
                                                                               100 wagon trains on the feeder lines from Waterberg, Mpumalanga and
                                                                                outlying areas
General Freight
                                                                               Train sets combined at Ermelo as 200 wagon trains to RBCT
 Source Areas
                                                                               Maintenance Philosophy – Technology for continuous condition monitoring
     Coal                                                                       of the system. Integrated annual maintenance shutdown – Rail, Terminal,
  Source Areas                                             Richards Bay
                     Richards Bay is developing as                              Ports, Coal Customers
                     a mega bulk port
Capacity Creation through an integration of initiatives to expand the
system at globally competitive supply chain cost

  Maintenance Philosophy   Train Authorisation Systems         Operating Models       Technology

                                          Capacity Creation Framework

                              Customer loading &                                  Condition assessment
  Telecommunications          offloading facilities              Rolling Stock           systems

                                                                                                         15
Transnet has been building capacity to export coal through Richards Bay and
other Ports

         69 207 609          76 335 969                                                  5 641 955
                    68 191 289          72 093 357 73 788 290 77 016 386                             5 160 521 4 827 790                                       5 206 278
67 696 042
                                                                                                                                                   4 438 221
                                                                                                                           3 777 260
                                                                                                                                       2 633 056

                                                                                          2012        2013      2014        2015        2016        2017        2018
  2012      2013      2014      2015      2016      2017        2018
                                                                                         Richards Bay Navitrade ROC              Maputo (Main Port)
                                                                                         Richards Bay Harbour DBT                Wests SDG.Bulk connections
              Richards Bay Coal Terminal
                                                                                         Maputo (TCM-Coal Siding)
                                                                                                                                                                    16

                                                         Total Coal Exports
                                                                                         11%
                                                                                                 80                                    78              82
                                                           73               74     73                              75

                                                         2012              2013   2014          2015             2016              2017              2018
SA Coal Logistics Challenges and Opportunities

 Impact of the Green Economy
      The future of coal remains uncertain - New energy sources being explored and gaining momentum
      Low investor interest towards new coal mining and coal power generation
 Tedious process and onerous requirements to be met for new mining activities
 Lack of credible future coal demand and commitment from market (investment certainty; return on investment)
 High cost of shipping - Regulation from International Maritime Organisation (IMO)
 Coal Sourcing points moving away from traditional coal fields towards north (Infrastructure, Turn Around Times, utilization rate, etc.)
 Lack of infrastructure and investment connecting coal deposits and the port
 Low coal production; Lack of rapid loading facilities; Railing to stockpile (no vessel nomination)
 Cable theft; vandalism of rail infrastructure; Inclement weather impact sometimes leading to port closures
 Overvaal tunnel remains a constraint
 Competition between domestic and export coal prices (power generation becoming expensive)
 Only 10 vs 40 mil Tons of rail friendly coal for power stations, actually moves by rail per annum
 Policy certainty could enhance attractiveness to industry players
 Optimization, synchronization of capacity within SA coal value chains (coal production, rail, RBCT, Port Terminal and Marine capacity)
New Developments: Capacity Creation Approaches for Coal System - Options

                                                                       Levers to go beyond 81Mta
                                                                  Customer Demand + Collaboration with RBCT
                                81 Mta Capacity               1. Efficiency – Foundation
                                                              1. Industry 4.0 Solutions + Breakthrough Technologies
                           Levers to operate to capacity
                                                              2. Re-Design existing Operations System
                                                                       - Operating Model (e.g. train length ,
                          1. Efficiency
          Capacity Mta

                                                                         Headway)
                          2. Electrical Infrastructure                 - Standardise operations, infrastructure &
                                                                         rolling stock
                            Upgrade
                                                              3. Introduce Dedicated Corridors
                          3. Availability of Customer                   e.g. Reroute GFB to other corridors
                            Demand                            5. Major capital intensive solutions – last option
                          4. Collaborating with RBCT                   - Infrastructure expansion
                                                                       - Additional Rolling Stock

                         2018                              2019                                         2022
                                                                   Years
New Developments: Efficiency Projects: Bypass of Empty Trains (Ermelo)

      Current Process : Empty Leg                                               Future Process : Empty Leg
      1. Train Arrival at B-Yard                                                1.    Train Arrival at B-Yard
      2. Pull Load to C-Yard split into 2 sets                                  2.    Change current AC to DC
      3. Arrival at C-Yard                                                      3.    Test
      4. Couple DC locomotives and Test                                         4.    Depart at C-Yard
      5. Depart at C-Yard

      Reference:                                                                Reference:
                             5.           4. DC locos      3. Arrival at C                              5.                 4. DC locos     3. Arrival at C
                         Departure        couple and                                                Departure                couple             yard
                                                                yard
                                                                                                    at C-Yard
    C _ Yard             at C-Yard          Testing
                                                                                 C _ Yard                         X. Testing

    B _ Yard                                                                     B _ Yard
                                                                                               1. Train arrival B-Yard            2. Pull train (B to C
                    1. Train arrival B-Yard             2. Pull train (B to C                                                     Yard) splits train
                                                        Yard) splits train                                                        into 2 sets
                                                        into 2 sets
                                                                                Plans and Benefit

                                                                                No.      Description                                      Opportunity
                                                                                2.       By pass Ermelo                                         270min
New Developments: Efficiency Projects: Electrification of the Ermelo Yard

         Current Process : Loaded Leg                                             Future Process: Loaded Leg

        1.   Loaded trains coming from the mine enter through D-Yard and          1.    Loaded trains coming from the mine enter through D-Yard
             Uncouple locomotives (Arrival)                                       2.    Pull load using Electric Locomotives from D – Yard to A –
        2.   Load get examined                                                          Yard (On the fly will switch the locomotive from AC to DC
        3.   Shunt load using Diesel locomotive to A – Yard                             automatically)
        4.   Couple Electric locomotives & Test                                   3.    Test the train
        5.   Depart to Richards Bay                                               4.    Depart to Richards Bay

        Reference:                                                                Reference:
                    5.Departure: 25 min          4.AC locos couple+ Test: 115
                                                                                                   Departure: 25 min       Test: 30 min
                                                 min                                                                                            AC locos
               A                                                                                                                                couple
                                                                                               A
                                                   a. Prep
               B                                                                                                                    a. Prep
                                                                                               B

               D
                   1.Arrival at D Yard:   2.Examination:
                                              95 min
                                                             3.Total shunting +                D   1.Arrival at D Yard:   2.Examination:          Total shunting +
                          35 min                             Coupling (D to A):
                                                                  140 min                                 35 min              95 min          Coupling (D to A): 140 min

                                                                                  Plans and Benefit
                                                                                  No.       Phase               Description                                                Opportunity
                                                                                  1.        Phase 1             On the fly - Electrify 2 lines                             4 hrs
                                                                                                                                                                                    20
                                                                                  2.        Phase 2             Electrifying the rest of Ermelo Yard                       8 hrs
New Developments: Coal Future Plans: Automatic Train Road Map

       No Project Name

        1   Automated Yards (Points and Signal Control)

        2   In Cab and Signaling Controls

        3   Automatic Train Control
                                                                2   3

        4
            Mobile track sanding equipment implementation

                                                                    5
        5
            Re-Planning Visual Simulation Tool
            (Any Logic)

        6   Visual Management Screens at the Yard

                                                            6
        7   Yard cameras
New Developments : Operating Model for Extended Heavy Haul Operations
to convey Coal from Waterberg and Botswana reserves

                                     Current Operating Model                                           Future Operating Model

                     Botswana                             Soutpansberg                                                  Soutpansberg

                             Lephalale                                                               Lephalale

                                                                                                                    Steelpoort          Phalaborwa
                                                      Steelpoort           Phalaborwa

                      Rustenburg                                                        Rustenburg

                                                        Ermelo                                                        Ermelo

                               General freight                                                                                         Richards
                                                                         Richards
                               Coal
                                                                         Bay                                                           Bay

                                                 Development of Waterberg corridor into semi-heavy haul operation
                                                         Extension of the ‘pipe’ from 600km to 1200km
New Developments - Coal Future Plans : Waterberg Existing Line Upgrades

                           Complete 200 wagon                                                                     Project Characteristics
                           compilation yard at
                           Lephalale                                                             • Upgrading of the existing line to increase capacity

              Lephalale                                                                              to 24mtpa in stages (1-5)
                                                                                                 • Lengthening/construction of loops
                                                                    Phalaborwa
                                                                                                 • Strengthening of Bridges
                    Thabazimbi                                                                   • Level crossing upgrades

                                                                         Komatipoort
                                                                                                 • Construct network stabilizing Facility (NSF) at
                                                                                                   Lephalale and consolidation yards
                        Pyramid                                                                  • Doubling of sections
                                     Ogies                                       Maputo          • Electrification

                                              Ermelo                                                                      Benefits
                     Complete 9 crossing loops     for
                                                                                                • Unlock the Waterberg
                     200 wagon trains, double 2 sections,
                                                                                                • Capacity creation
                     upgrade substations, strengthen
                                                                                                • Stimulate mining activity in the region
                     bridges and upgrade level crossings
                                                                                                                       Current Status
                                                                                 Richards Bay       Stage 1: completed
         Waterberg Existing line project is part of the Waterberg programme and aims                Stage 2: Execution, completion by 2019 (9.5mtpa)
         to increase capacity from Lephalale - Pyramid south from 2.3mtpa to 24mtpa                 Stage 3: Execution, completion by 2020 (13.5mtpa)
         for export coal. The programme is split into stages and every stage is activated           Stage 4: Feasibility, completion by 2021 (24mtpa)
         with aligned to validated volume demand                                                    Stage 5: Feasibility, completion by 2022 (operational
                                                                                                     efficiency, 24mtpa)
Coal Future Plans: New Heavy Haul Line between Lephalale and Ermelo

                Botswana
                Coal Fields                               Musina                                     Project Characteristics

                          Waterberg                                                          Increase Coal tonnages from Limpopo
                          Coal Fields
                     Lephalale          Polokwane
                                                                                              & Botswana : 40mtpa – 100+ mtpa
                                                               Phalaborwa

                                                                                                             Benefits
                   Thabazimbi
                                                                                             Provide world class heavy haul rail
                                         560km                         Komatipoort            infrastructure to optimise economic
                                                                                              and mining development in
                      Pyramid                                                                 Waterberg and Botswana
                                        Ogies                                  Maputo
                                                                                             26t/axle
                                                                                             200 wagon train
                                                 Ermelo

                                                                                                         Current Status

                                                                                             FEL 1 (conceptual study) completed.
                                                                                             FEL 2 (Pre-feasibility study in progress)
                                                                                             Implementation to take place post
                                                                                              2022
                                                                             Richards Bay
Coal Future Plans: Heavy Haul Rail Link to Botswana in Collaboration with
Botswana Railways

                 Botswana
                 Coal Fields                       Musina
                                                                                             Project Characteristics
                                                                                      Provide a rail link to unlock Botswana
                                                                                       coal reserves - potential for up to
                      Lephalale   Polokwane                                            100Mtpa
                                                        Phalaborwa
                                                                                      Need to construct 3-4km bridge to cross
                                                                                       the Limpopo River
                    Thabazimbi
                                                                                                      Benefits

                                                                Komatipoort           Stimulate economic growth in Botswana
                                                                                       and Limpopo province
                       Pyramid                                                        Provide a route to unlock Botswana coal
                                  Ogies                                                reserves
                                                                       Maputo         Link Botswana mines to TFR rail network
                                          Ermelo
                                                                                                  Current Status

                                                                                      FEL 1 (conceptual study) completed
                                                                                      MOU under review
                                                                                      FEL 2 Project to kickoff after MOU is signed
                                                                                       by 2 countries
                                                                                      Implementation to take place post 2022
                                                                      Richards Bay
New Developments: Overvaal Tunnel Doubling – Construct new tunnel with
two railway lines

                        Lothair                                                               Project Description
           Ermelo
                                                                                               The tunnel currently has one line
Overvaal                                                                                       The project objective is to construct an additional tunnel next
                                                                           = 26 t/axle
                                                                                                to the existing one to have two rail lines (2024)
                                     Piet Retief                           = 20 t/axle
                                                                           =
New Developments: Coal Backbone Upgrade – Coal export growth to 91mtpa

                                                                                                    Machadodorp
   Greenview
                                                                                                                  Project Description
                                             Middelburg

                              Witbank                               Hendrina
                                                                                                                   The project aims to upgrade the coal rail system north of
                                                  Uitkyk                               Wonderfontein                Ermelo to meet future demands for domestic and export
                                                                                                                    coal
                                      Blackhill
               Kendal
                                                                                                                   The coal backbone is the common denominator of the coal
                                                                         Pullenshope
    Welgedag                                                                                        Carolina        system and acts as the conduit for coal flows for ESKOM,
                        Ogies
                                               Blinkpan             Geluksplaas                                     the Waterberg, Swazi Link and Exports
    Delmas                      Rietspruit
                                                                                                                   This includes accommodating coal export growth to
                 Hawerklip                                          Halfgewonnen             Breyten
                                                                                                                    91mtpa while at the same time migrating 9mtpa of
Springs                                                                                                             additional ESKOM coal from road to rail.
                                                           Bethal         Hamelfontein
                Kelty

                                   Trichardt
                                                                                             Ermelo               Project Status Quo
                                                                                                         Camden
                                                                                                                   The project is currently in FEL-2 and must still undergo
                                                                                           Camden
                                                                                                                     the gate review.
                  26 t/axle
                                                                         ESKOM
                                               Tutuka                    New Line
                  20 t/axle

                  18.5 t/axle

                                                                    Majuba

                                                                                                                                 Transnet Freight Rail is a division of Transnet SOC Ltd Reg no.: 1990/000900/30   27
New Developments: Swazi Rail Link – Provide capacity in 3 phases 16 – 32 -
43mtpa

                                                                          Komatipoort
                                                                                               Project Description
                                                                                                A bilateral project between Transnet and Swaziland
                                                                                 Beluluane
                                                                                                 Railway, aimed at establishing a strategic rail link from
                                                                                                 Lothair to Sidvokodvo in Swaziland
          Pullenshope                                                                 Maputo
                         Carolina                                                               The link seeks to create a dedicated Export General
                                                                             Goba                Freight (GF) rail corridor to the eastern seaboard ports of
 Davel
                                     Lothair Junc.
                                                                   Mpaka                         Richards Bay and Maputo
                                                     Matshapa
 Bethal                 Ermelo
                                                                  Phuzumoya

                                                                         Big Bend
                                                                                                Project Status Quo
            Swazi Rail Scope
                                                                        Nsoko                    The New Link Project (Lothair to Sidvokodvo) has
            Transnet Scope                                                                         completed FEL-3
                                                                        Golela                   The Upgrade Projects (Sidvokodvo to Golela, Davel to
                                                                                                   Lothair, Golela to Nsezi) are at different FEL stages
                                    Existing Line Upgrades
                                                                        Bayala                     (FEL2 & 3)
                                                                   Ncemane

                                                                Nsese
                                                Empangeni
                                                                   Richards Bay

                                                                                                               Transnet Freight Rail is a division of Transnet SOC Ltd Reg no.: 1990/000900/30   28
Conclusion

              South Africa has developed expertise to efficiently and cost effectively transport coal by rail from
               mines to ports for export.
              Current export capacity of >80mtpa will be significantly increased by investment in capacity creation
               programmes
              Transnet will declare beyond 81 mtpa capacity in the new FY
              Major capital programmes will proceed as demand certainty increases
              Collaboration with prospective public and private sector partners will accelerate developments
              Undivided attention given to improving operations efficiency, the foundation for building the future
              The Coal System Rail Capacity Creation Approach will ensure customer demand is matched at all
               times
              Heavy Haul Operations Business of Transnet has started with defining the future of our Heavy Haul
               Railway under Industry 4.0
              There is a compelling case to apply the already proven successes of the Heavy Haul industry in non
               heavy Haul operations, especially in Africa.
              Great opportunity to grow other terminals (non-RBCT) and Eskom to realize SA’s road to rail
               aspirations.                                Transnet Freight Rail is a division of Transnet SOC Ltd Reg no.: 1990/000900/30   29
Transnet Freight Rail is a division of Transnet SOC Ltd Reg no.: 1990/000900/30
Export Coal = Weekly Flow - RBCT

                                                            Grootegeluk                                                                                                KOMATIPOORT
                                                                                 PYRAMID S                                                            NELSPRUIT

                                                                           PTA                                               MACHADODORP
                                                                                                     MIDDELBURG WONDERFONTEIN
                                                                                                     WITBANK
                                                                                 SENTRARANDBLACKHILL                                                  BARBERTON                       TO MAPUTO

                                                                                                                  BSP   PULLENSHOPE
                                                                                           WGD
                                                                                                   OGIES                          CAROLINA
                                                                           GMR
                                                                                           SPR                                BREYTEN
                                                                                                                                            LOTHAIR
                                                                           RIETVALLEI                         BETHAL

                                                                                        HEIDELBERG                                ERMELO                SWAZILAND
                                                                                                      TRICHARDT
                                                                          TO VEREENIGING
 Number of Tipplers                                          5
 Total Yard Machines (Stacker/reclaimer)                    10
                                                                                                 STANDERTON                                             PIET
                                                                                                                                                      PIET    RETIEF
                                                                                                                                                           RETIEF
 Number of Stacker Reclaimers                                7
 Number of dedicated stackers                                2                                                                                                                  GOLELA
 Number of dedicated Reclaimers                              1                                                 VOLKSRUST                               PAULPIETERSBURG
                                                                                                                                                      PAULPIETERSBURG

 Number of shiploaders                                       4                                                                    UTRECHT                HLOBANE                     MKUSI
                                                                                                                                            VRYHEID
 Rate of offloading a train                               5500tph                                              NEWCASTLE
                                                                                                                                                         VRYHEID

 Time in Tippler excluding handling Time to offload        01:54                                                                                                              HLUHLUWE
 Train (hh:mm)                                                                                                          GLENCOE
                                                                                                                                                                     ULUNDI

 Stockpile Capacity                                      8.2 Million
                                                                                                                                                                                         MTUBATUBA
 Rate of loading vessel                                   4000tph
                                                                                                                            LADYSMITH
                                                                                                                                                               NKWALINI
 Size of biggest vessel                                 203 000 tons                                                                                                              NSESE
                                                                                                                                                                    EMPANGENI
 Average Vessel size                                    100 000tons                                                                                      ESHOWE

 Length of line                                          4*(1,3km)                                                                                       GINGINDLOVU            RICHARDS BAY

 offloading rate, how long to offload a train               4hrs
                                                                                                                                                      STANGER
 How long does it take a train from mines to port          29 hrs
 Total cycle time                                          60 hrs                                                                           PIETERMARITZBURG

                                                      200wp/t - 6 x 21E
                                                                                                                                                            DURBAN
 How many locomotives & wagons                             or 19E                                                                                                                                    31
Non – Eskom Domestic – Weekly flow – RBTG

                                                                                                                                                                           KOMATIPOORT
                                                                                       PYRAMID S                                                         NELSPRUIT

                                                                                 PTA                                               MACHADODORP
                                                                                                           MIDDELBURG WONDERFONTEIN
                                                                                                           WITBANK
                                                                                       SENTRARAND                                                        BARBERTON                          TO MAPUTO
                                                                                                                                              Ngodwana                                                 TCM
                                                                                                                        BSP   PULLENSHOPE
                                                                                                 WGD
                                                                                                         OGIES                          CAROLINA
                                                                                 GMR
                                                                                                 SPR                                BREYTEN
                                                                                                                                               LOTHAIR
                                                                                 RIETVALLEI                         BETHAL

                                                                                              HEIDELBERG                                                   SWAZILAND
                                                                                                            TRICHARDT
 RBTG                                                                           TO VEREENIGING

 Number of Tipplers                                                2
                                                                                                                                                         PIET RETIEF
 Total Yard Machines (Stacker/reclaimer)                           0                                   STANDERTON

 Number of Stacker Reclaimers
                                                                                                                                                                                      GOLELA
 Number of dedicated stackers                                      1                                                 VOLKSRUST                           PAULPIETERSBURG
 Number of dedicated Reclaimers                                    3                                                                 UTRECHT                HLOBANE                       MKUSI
 Number of shiploaders                                                                                               NEWCASTLE
                                                                                                                                               VRYHEID

 Rate of offloading a train                                 8mpw(r) 4mpw(c)
 Time in Tippler excluding handling Time to offload Train                                                                                                                       HLUHLUWE
                                                                  4:00
 (hh:mm)                                                                                                                      GLENCOE

 Stockpile Capacity                                         50 000 per week                                                                                                                      MTUBATUBA

 Rate of loading vessel                                          600t/h                                                           LADYSMITH
                                                                                                                                                                  NKWALINI
 Size of biggest vessel                                            75kt                                                                                                                  NSESE
                                                                                                                                                                         EMPANGENI
 Average Vessel size                                               55kt                                                                                      ESHOWE                              MPT
                                                                                                                                                                                     Navitrade
 Length of line                                             4 lines (50wgns)                                                                                GINGINDLOVU

                                                            7mpw & 6hrs per
 Loading rate, how long to load a train                            train                                                                                 STANGER

 How long does it take a train from mines to port                 30 hrs                                                                       PIETERMARITZBURG
 Total cycle time                                                 96 hrs
 How many locomotives & wagons                              50 wp/t – 2 x 22E                                                                                  DURBAN
                                                                                                                                                                  West
                                                                                                                                                                                                             32
Non – Eskom Domestic – Weekly flow – MPT

                                                                                                                                                                      KOMATIPOORT
                                                                                  PYRAMID S                                                         NELSPRUIT

                                                                            PTA                                               MACHADODORP
                                                                                                      MIDDELBURG WONDERFONTEIN
                                                                                                      WITBANK
                                                                                  SENTRARAND                                                        BARBERTON                          TO MAPUTO
                                                                                                                                         Ngodwana                                                 TCM
                                                                                                                   BSP   PULLENSHOPE
                                                                                            WGD
                                                                                                    OGIES                          CAROLINA
                                                                            GMR
                                                                                            SPR                                BREYTEN
MPT                                                                         RIETVALLEI                         BETHAL
                                                                                                                                          LOTHAIR

Number of Tipplers                                           N/A                         HEIDELBERG
                                                                                                       TRICHARDT
                                                                                                                                                      SWAZILAND
                                                                           TO VEREENIGING
Total Yard Machines (Stacker/rec                             N/A
Number of Back Actors                                         6
                                                                                                                                                    PIET RETIEF
Number of Back Actors                                         5                                   STANDERTON

Number of dedicated Reclaimers                               n/a
                                                                                                                                                                                 GOLELA
Number of shiploaders                                                                                           VOLKSRUST                           PAULPIETERSBURG
Rate of offloading a train                                   15h                                                                UTRECHT                                              MKUSI
                                                                                                                                                       HLOBANE
Time in Backactor excluding handling Time to offload                                                                                      VRYHEID
                                                          10h/train                                             NEWCASTLE
Train (hh:mm)
Stockpile Capacity                                                                                                                                                         HLUHLUWE

Rate of loading vessel                                        n/a                                                        GLENCOE

Size of biggest vessel                                       60 kt                                                                                                                          MTUBATUBA

Average Vessel size                                          35 Kt                                                           LADYSMITH
                                                                                                                                                             NKWALINI
Length of line                                             103 CFRs                                                                                                                 NSESE
                                                                                                                                                                    EMPANGENI
                                                                                                                                                        ESHOWE                              MPT
Loading rate, how long to load a train                       6 hrs                                                                                                              Navitrade
                                                                                                                                                       GINGINDLOVU
How long does it take a train from mines to port           30 hrs
Total cycle time                                           120 hrs                                                                                  STANGER
How many locomotives & wagons                          40 Wp/t – 2 x 22E
                                                                                                                                          PIETERMARITZBURG

                                                                                                                                                          DURBAN
                                                                                                                                                             West
Non – Eskom Domestic – Weekly flow – TCM

                                                                                                                                                                          KOMATIPOORT
                                                                                      PYRAMID S                                                         NELSPRUIT

                                                                                PTA                                               MACHADODORP
                                                                                                          MIDDELBURG WONDERFONTEIN
                                                                                                                                             Ngodwana                                             TCM
                                                                                                          WITBANK
                                                                                      SENTRARAND                                                        BARBERTON                        TO MAPUTO

                                                                                                                       BSP   PULLENSHOPE
                                                                                                WGD
                                                                                                        OGIES                          CAROLINA
                                                                                GMR
                                                                                                SPR                                BREYTEN
                                                                                                                                              LOTHAIR
                                                                                RIETVALLEI                         BETHAL
TCM
                                                                                             HEIDELBERG                                                   SWAZILAND
Number of Tipplers                                                1            TO VEREENIGING
                                                                                                           TRICHARDT

Total Yard Machines (Stacker/reclaimer)                          N/A
Number of Stacker Reclaimers                                     n/a                                  STANDERTON                                        PIET RETIEF
Number of dedicated stackers                                     n/a
Number of dedicated Reclaimers                                   n/a                                                                                                               GOLELA
                                                                                                                    VOLKSRUST                           PAULPIETERSBURG
Number of shiploaders                                            n/a
Rate of offloading a train                                     12h/t/d                                                              UTRECHT                HLOBANE                      MKUSI
                                                                                                                                              VRYHEID
Time in Tippler excluding handling Time to offload Train                                                            NEWCASTLE
                                                                4,5hrs
(hh:mm)
                                                                                                                                                                                HLUHLUWE
Stockpile Capacity                                              150kt
                                                                                                                             GLENCOE
Rate of loading vessel
                                                                                                                                                                                           MTUBATUBA
Size of biggest vessel                                          70kt
                                                                                                                                 LADYSMITH
Average Vessel size                                             50 kt                                                                                            NKWALINI
                                                                                                                                                                                            MPT
                                                                                                                                                                                       NSESE
Length of line                                                    1                                                                                                     EMPANGENI Navitrade
                                                                                                                                                            ESHOWE
                                                            4 minutes per
                                                                                                                                                           GINGINDLOVU
Loading rate, how long to load a train                       wagon,(6hrs)
How long does it take a train from mines to port                9 hrs
                                                                                                                                                        STANGER
Total cycle time                                                 15
How many locomotives & wagons                              50 wp/t – 3 x 18E                                                                  PIETERMARITZBURG
                                                                                                                                                                 West
                                                                                                                                                              DURBAN
Non – Eskom Domestic – Weekly flow – MPM

                                                                                                                                                                        KOMATIPOORT
                                                                                   PYRAMID S                                                          NELSPRUIT

                                                                             PTA                                               MACHADODORP
                                                                                                       MIDDELBURG WONDERFONTEIN
                                                                                                       WITBANK                             Ngodwana                                             TCM
                                                                                   SENTRARAND                                                         BARBERTON                        TO MAPUTO

                                                                                                                    BSP   PULLENSHOPE
                                                                                             WGD
                                                                                                     OGIES                          CAROLINA
                                                                             GMR
                                                                                             SPR                                BREYTEN
                                                                                                                                           LOTHAIR
                                                                             RIETVALLEI                         BETHAL

                                                                                          HEIDELBERG
MPM                                                                                                     TRICHARDT
                                                                                                                                                        SWAZILAND
                                                                            TO VEREENIGING
Number of back actor                                           2
Total Yard Machines (Stacker/reclaimer)                       n/a
                                                                                                   STANDERTON                                         PIET RETIEF
Number of Stacker Reclaimers                                  n/a
Number of dedicated stackers                                  n/a
                                                                                                                                                                                  GOLELA
Number of dedicated Reclaimers                                n/a                                                VOLKSRUST                            PAULPIETERSBURG

Number of shiploaders                                         n/a                                                                UTRECHT                 HLOBANE                      MKUSI
                                                                                                                                           VRYHEID
Rate of offloading a train                                   24hrs                                               NEWCASTLE
Time in backactors excluding handling Time to offload
                                                             20hrs                                                                                                             HLUHLUWE
Train (hh:mm)
Stockpile Capacity                                           100kt                                                        GLENCOE

Rate of loading vessel                                      6/7 days                                                                                                                      MTUBATUBA

Size of biggest vessel                                        70kt                                                            LADYSMITH
                                                                                                                                                               NKWALINI
Average Vessel size                                           50kt                                                                                                                  NSESE MPT
                                                                                                                                                                      EMPANGENI Navitrade
Length of line                                          2lines of (600m)                                                                                  ESHOWE

                                                                                                                                                         GINGINDLOVU
Loading rate, how long to load a train                        6hrs
How long does it take a train from mines to port             15hrs                                                                                    STANGER

Total cycle time                                             56hrs
                                                                                                                                           PIETERMARITZBURG
How many locomotives & wagons                           50 wp/t – 3 x 18E
                                                                                                                                                               West
                                                                                                                                                            DURBAN
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