Public Private Partnerships: Improve logistics and production deliveries of Coal

Transcription

1 Public Private Partnerships: Improve logistics and production deliveries of Coal Divyesh Kalan General Manager Commercial : Coal 24 Nov 2010 Emperors Palace Coal Energy SA

2 Coal Channels Richards Bay Coal Line Alignment of rail capacity to port capacity Capital and operational levers Maputo Channel Alignment of rail capacity to port capacity Capital and operational levers CFM and Transnet operating model Waterberg Basin Long Term Export sustainability Infrastructure development 1

3 1 Richards Bay Coal Line Examples RAIL PORT Current Medium term Long term mtpa mtpa a Challenges Issues Possible PPP Coal availability Coal supplies Validation b Rail challenges -Infrastructure -Rolling Stock -Human Resource Cable theft Wagons/Loco s Joint Projects Community/pvt Collaboration Investments Capability building 2

4 1 Richards Bay Coal Line 81 mtpa & beyond Improvement Levers Lever Baseline a Improve/ redesign SOC b Increase wagon fleet size/ availabilit y Impleme nt 100% book-offs Top up all trains Improve ERM yard processes Reduce loco losses Reduce TAT in 2279/ RBCT Reduce infra losses Reduce mine cancellations e Improve TAT at mines f 26t/axle. Target with conting. 5% execution conting. Total a Improve SOC e Improve mines b Increase fleet size f 26t/axle loading

5 2 Timeline 1 A three phased approach will be adopted to ensure opportunity realisation for the corridor 6 Weeks 8 Weeks 8 Weeks Overall system profiling Outputs Commercial profile of all commodities Operational profiling and development of high level heat map across Rail and Port Design overall operating principles to improve system efficiency Stakeholder Alignment Identify priority items for deep dive Identify and define Early Wins process 2a Conduct corridor operational diagnostic for priority items 2b Implement early wins 2a 2b Detailed operational capacity diagnostic for priority flows/items (including rail and port) Corridor operating philosophy design Design of required corridor operational management functions (NCC/KTR/MPT etc) Define and prioritise improvement levers Mobilisation for Early Wins (based on previous learning's) and initiation of implementation together with stakeholder support* 3 Design Implementation Design identified systems and tools to support implementation programme Institution of required tools and systems to improve performance Syndication of achievable performance challenge and mobilization of management around targets Institution of tracking and governance around targets Coach relevant staff across the line Breakthrough Out of scope Detailed implementation plan to roll out Early wins and longer term implementation items Breakthrough preparation Current point in project 4

6 Private Sector Participation Framework COMPLEMENTARY TO TRANSNET STRATEGY MEGA PROJECTS PRIVATE FINANCE INITIATIVE JOINT VENTURES PROBABLE PROJECTS CRITERIA Non-core but fundamental in complementing strategic objectives Scope to improve productivity and drive efficiencies Benefit from increased competition Branch line network Inland terminals Multi-purpose terminals Short-sea-shipping feeder network Customer-owned wagons Ship repair facilities Passenger terminals Mega investment requirement to provide step change in capacity Unaffordable to Transnet alone High risk investment due to long pay-back periods High concentration risk in specific commodity/ies Limited number of users No guarantee on volumes Coal line expansion Iron-ore line expansion Manganese expansion Core intermodal network expansion New container terminal Benefit from private sector expertise and technology Value in strategic partnerships High levels of innovation required Increased revenue and volumes Reduce cost of doing business in SA and improve competitiveness rating Transshipment hub-port terminal Integrated logistics services New bulk port terminals (where unaffordable) New container terminals (where unaffordable) Customer owned wagons 5

7 Our Message. Consultants engagement and the execution of plans Collaboration with all stakeholders Transnet priority Employees want to win and succeed Good relationship and team spirit with all stakeholders. Sustainable Predictable Reliable Executable Efficient Effective Capital Operational 6

8 Thank You