Transnet: The Ngqura expansion project€¦ · International Manganese Institute 40th Annual...

International Manganese Institute 40th Annual Conference, Cape Town 30 May 2014

Transnet: The Ngqura expansion project Cleopatra Shiceka: General Manager in the Office of the CE, TFR

Contents

Project Introduction

Technical Overview

Supporting emerging miners

Socio-economic impact

Phase 1 Progress

Conclusion

Environmental considerations necessitate the closure of the Mn facilities in Port Elizabeth

0.2 7.5

5.2

2.1

2005

2.1 1.7

2.0

2012

+14% p.a.

2000

0.1

1.7

Port Elizabeth Richards Bay

Durban

PE (rail); Durban (rail and road); R Bay (road)

South Africa manganese ore exports 2012

Mtpa

▪ Transnet will continue to offer alternative channels, but

▪ Bridging capacity is fragmented and not sustainable

▪ Notwithstanding environmental issue, PE terminal is hemmed-in preventing expansion beyond 5.5Mtpa

▪ Accommodating emerging miners is limited and capacity allocation constrains current and future volumes of all exporters

The 16Mtpa manganese expansion will increase rail capacity from the manganese rich Northern Cape to a new, dedicated bulk terminal in the Port of Ngqura

Cape Town Ngqura

Sishen

Hotazel

Noupoort

De Aar

Lohathla

Durban

Rail route

The integrated Ngqura solution provides 16 Mtpa of capacity by 2020 by leveraging existing port assets and meets our broader strategic mandate

Reduce the cost of doing business

Facilitate sustainable growth of our customers

Drive socio-economic development

Transnet objectives How this project meets objectives

▪ Take advantage of existing infrastructure

– Existing rail line (with exception of compilation yards)

– Existing deep water bulk berths in Ngqura harbour

▪ Optimise infrastructure through integrated rail and port solution

▪ Introduces new technology (locos), operating model (200-wagon trains) and state-of-the-art port equipment

▪ Create sufficient transport capacity ahead of growth in Mn demand aligned with the MDS objectives

▪ Support emerging miners by reducing barriers to entry

▪ Decrease underlying export cost structure of SA Mn producers

▪ Create ~30,000 direct and indirect jobs in the N.Cape and E.Cape regions

▪ Support SA localisation and transformation agenda through focused procurement strategy

▪ Ensure sustainability of both communities and the natural environment impacted by the project

The rail operating philosophy introduces heavy haul operating principles

Base-load Customers (Category 1): Mines with rail facilities.

New entrants (Category 2): Mines with no rail facilities.

100 wagon rail shuttles

200 wagon, 20tal, distributed power train

Mamathwane Common User Facility

Mainline Rail Operations

Road haul

Ph

ase

1

Ph

ase

2

The rail solution takes advantage of existing infrastructure, and maximises capacity by using new technologies

C

Western Cape

Eastern Cape

Northern Cape

Free state

North West

Gauteng

Lesotho

Sishen New Loop

Witloop

Trewill

Mamathwane Compilation Yard (3)

Winconton

Tsantsabane

Glosam

Postmasburg

Partial Doubling of Line From Beaconsfield To De Aar (Phase 1) (1)

3Kv DC Upgrade (4)

25Kv AC Upgrade

Burgervilleweg

Tafelberg

Linde

Knutsford

Drennan

Cookhouse - Golden Valley (5)

25Kv AC Upgrade (6)

Verby Coega Compilation Yard

Coega Ngqura

Wagon Maintenance Facilities

Locomotive Maintenance Facilities

Mamathwane Compilation Yard

Section: De Aar to Coega

25kV AC upgrade

Section doubling

− Cookhouse – Golden Valley

7 x loops lengthened

Coega Compilation Yard

Beaconsfield “On the Fly” Change-over Facility

Section: Mamathwane to Kimberley

1 x loop north of Mamathwane

4 x loops lengthened

1 x new loop

3kV DC upgrade

Satellite Operations Planning Centre

Wagon maintenance depot

Loco prep depot

Satellite Command Centre

Section : Kimberley to De Aar

Partial doubling of 97km

Rosmead loop extension

New infrastructure

Loop extension

Other

Phase 1

Phase 2

Rolling stock

▪ Upgrade 1527 existing CR wagons

▪ Build 1673 new CR wagons

▪ 109 new Dual Voltage Locomotives

▪ 12 Diesel Locomotives

Mamathwane common user facility

The port solution utilises existing berths and is scalable

The port scope (Take- off point from the Coega river bridge )

Arrival and departure yard 1

Existing berths C101 and C100 2

Two ship-loaders capable of loading up to two 80,000 DWT Panamax size vessels simultaneously

3

Three stackers and related stockyard conveyors to stack ore on the stockpiles, with provision to add a fourth stacker in future

4

Two reclaimers and related stockyard conveyors to reclaim ore from the stockpiles, with provision to add a third reclaimer in future

5

Four stockyard rows, with provision to add two additional rows in future

6

Dual surge bins at the stockyards to optimize ship loading efficiency

7

1

3

2

4 5 6

7

N2 Highway Rail Mainline

Coega River Rail Bridge

Coega River

1

7

8

9

10

Mamathwane Compilation Yard: Centre of Gravity for train compilation and product consolidation

2

3 4

5

6

11 Postmasburg

Lohatlha

Hotazel

The needs of emerging miners are met through the provision of a common user loading terminal

2

3

6

4

5

CUF Phase 1

CUF Phase 2

2 3 4

5

6

Do

cu

me

nt

su

pp

ort

Op

era

tio

ns

Lo

gis

tics

Joint planning, management & control is critical to achieving system throughput, operational efficiency levels and asset utilisation targets

Manganese SOC

Terminal

AMR

UMK

Gloria

Wessels

TFR Infra

PE KBY MMT

MINE M T W T F S S

ARM

UMK

Sam

Other Te

rmin

al P

lan

Mini Parcel Ship ETA

X A 1

Y B 2

Z C 3

TNPA

DER

KBY

MMT

SP1 SP2 SP3 SP3

A

B

C

D

CUF

Hotazel

Nchwaneng

Blackrock

Saman cor

Smaller mines

UMK

Mines

Mine Houses

• Wagon maintenance • Loco maintenance • Track maintenance

Communication Planning Visibility

PMG

PE

Rail allocation

Communication Planning Visibility

Port

Ships

Port stock allocation Ship allocation

More than 30,000 jobs will be created along the project geography

320

950220 18,900

Total

32,500

13,600

Indirect jobs

13,900

8,100

5,800

Total direct jobs

4,300

3,100

Skilled labour

1,300

Profes-sional labour

10,800

Informal labour

18,600 8,300

4,800

3,500

Semi-skilled labour

7,800

Rail: ~66% Port: ~34%

Northern Cape Eastern Cape

1 Mn business case 2013 2 DTI 2011 and Industrial Policy Action Plan 2011

Construction jobs 1

Permanent jobs

Mining2

Port

Rail

Area

~24,500

~250

~500

No. of jobs

13,828 direct mining jobs based on 500 direct jobs per million tons of ore, 10,695 (indirect and induced)

Derived from Saldanha terminal operations

Represents additional personnel required for operations, infrastructure maintenance and rolling stock maintenance

Description

Jobs (approximation)

Significant progress has been made with Phase 1

Km 193 Km 39 Km 36 Modder River Bridge

Km 10

Km 227 Km 218 Km 217 Km 199

Rail Phase 1

Project Status

Scope: Reinstatement of loops and formation rehabilitation between Kimberley and De Aar and the extension of the Rosmead passing loop. ETC: R2.38 billion

Conclusions

• Transnet remains committed to the expansion of the Manganese industry in South Africa

• The State of the Nation address 2014 reaffirms the contribution of the mining sector in South Africa’s development

• Transnet and Industry is working together to make this part of the ‘good news’ story in our country’s young democracy

12

Thank You

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