PROVISION OF EQUIPMENT OPERATING SERVICES AT THE LOHATLHA INLAND TERMINAL

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1 Document Title: SCOPE OF WORK Project Title: PROVISION OF EQUIPMENT OPERATING SERVICES AT THE LOHATLHA INLAND TERMINAL 1

2 DOCUMENT APPROVAL LOHATLHA INLAND TERMINAL Name Title Signature Date Compiled By J Pearce Senior Manager: SNBD Compiled By C Jansen Terminal Manager: NCT (Acting) Approved By O Borchards Executive Manager: Cape Region TABLE OF CONTENTS 1. Background 2. Overview 3. Operational handling methodology 4. Specific deliverables for the tender process 5. Graphic illustration of process flows 2

3 RFP FOR THE PROVISION OF EQUIPMENT OPERATING SERVICES FOR TRANSNET SOC LTD OPERATING AS TRANSNET PORT TERMINALS, (HEREINAFTER REFERRED TO AS TPT ), AT THE LOHATLHA INLAND TERMINAL, INCLUDING THE PROVISION OF MATERIAL HANDLING EQUIPMENT (FRONT END LOADERS AND AN EXCAVATOR, etc.) ON AN AS AND WHEN REQUIRED BASIS, FOR A PERIOD OF 3 (THREE) MONTHS. SCOPE-OF-WORK, BACKGROUND AND OVERVIEW 1 BACKGROUND The Lohatlha Inland Terminal serves as a rail consolidation terminal for manganese mines situated in the Northern Cape. The terminal has become the gateway between smaller mines in the Northern Cape and international markets. The successful bidder will share in the mission and business objectives of Transnet Port Terminals. These mutual goals will be met by meeting contract requirements and new challenges in an environment of teamwork, joint participation, flexibility, innovation and open communication. The following is a photographical view of the Lohatlha Inland Terminal with its infrastructure: Entrance Gate Weigh bridge & Office Parkhomes & Parking 3 Stockpiles Loading Line m

4 2 OVERVIEW TPT wishes to engage the services of an equipment operating company for the Lohatlha Inland Terminal, Northern Cape, South Africa. Competency in the supply of and operation of this type of equipment and service must be demonstrated and the successful bidder shall provide TPT with a reference list of similar work performed. TPT (or it s appointed 3rd party inspector) reserves the right to periodically carry out inspections on all equipment at its discretion, without notifying the successful service provider. No accommodation of any description (offices, workshops/operational facilities) will be provided by TPT for the successful bidder s use. TPT reserves the right to award any section / component of the scope individually to different Bidders, or all Components to the same Bidder or in portions if deemed fit; based on the cargo handling process described below. Safety and access requirements such as medicals, badging, transport, PPE, including SHE files shall be for the successful bidder s account and shall be attended to by the successful service provider prior to commencement of the contract. The tender includes equipment operating services highlighted in this document with material handling equipment (including Operators) at Lohatlha Inland Terminal for both Inbound and Outbound Cargoes. The contract duration will be 3 months from the date of award, on an as and when required basis, including a lead-time of not more than 5 days for site establishment. The current planned operational start date is 01 July TPT reserves the right to adhere to customer specification which does not guarantee all volumes to be handled using the same operational model. TPT also reserves the right to allow its partners and/or customer(s) to utilise their own equipment where and if required, based on TPT s agreed commitments. Volume estimates are not absolute and the successful service provider will not handle all volumes that pass through terminal gates/boundaries. However, the following is a record of projected future volumes to be handled at Lohathla Inland Terminal. Projected volume for the three month period is tons. 3 OPERATIONAL HANDLING METHODOLOGY: 3.1 CARGO HANDLING PROCESS: Cargo is handled as follows: BACK-STACKING STAGE 4

5 Receive cargo by road truck, weigh it on a weigh bridge, move it to stacking area and back-stack it to the required height using the excavator The Excavator will be used to back stack the bulk cargo up to eight (8) meters high (tipped by the road trucks) towards the back of the stack in order to optimise the usage of the stacking area. NB: The 8m height is measured from the ground level to the apex of the stack LOADING OF RAIL TRUCKS The Front end loaders are used to load rail trucks. The rail trucks must be loaded in a manner that ensures even distribution of mass across the Rail Wagon axels. Each rail truck has a capacity of 63 tons and equipment load cells must be used to approximate this tonnage (i.e. the supplied equipment must be fitted with weight cells appropriate fior handling of this cargo). It is required that 7 trains consisting of 104 wagons per train are loaded per week. i.e. 104 wagons equating to 6552 tons per day or alternatively 728 wagons equating to tons per week. Cleaning of spillage/waste is the responsibility of the successful service provider. It is expected of the successful bidder to work without any interruptions as a result of shift change overs, fuelling, meal breaks etc. in order to ensure operational efficiencies and committed handling rates are met and/or exceeded. 3.2 SPECIFICATIONS OF EQUIPMENT: In addition to the equipment specifications of the Front End Loaders and Excavator, the successful bidder s equipment must comply with the following requirements: All fleet must be in good working condition (as per relevant Road Traffic Ordinances, amongst other applicable Laws) with safety workload certificates and tested as per relevant legislation. All fleet must be fitted with orange revolving lights and reverse sirens EXCAVATOR One (1) excavator is required. The excavator must be equipped with a boom capable of back stacking cargo to a height of 8 meters. The excavator must have tracks. A minimum bucket capacity of 9 Ton is required. 5

6 FRONT END LOADERS (FEL s) Two (2) FEL s are required. The FEL s must be fitted with load cells/weight cells. The FEL s must have a minimum capacity of 9 Tons. 3.3 EQUIPMENT METHODOLGY: (Equip availability, Equip Operation, Reporting and Reconciliation) TPT reserves the right to invent or establish better ways of improving operational efficiencies with or without informing the successful bidder. Should this occur, the successful bidder shall be engaged to review. This could include, but not limited to, a change in the Terminal operating models EQUIPMENT AVAILABILITY All equipment and operators must be readily available to commence work as prescribed by Transnet s Operations Manager/Supervisor. There should be no idle time experienced by all equipment during the loading process. If the non-availability of any equipment is due to mechanical breakdown, it is the successful bidder s responsibility to ensure that this does not lead to production delays or deviations from the norms outlined above. If the time to carry out repairs is or extends to longer than 2 hours on a front-end loader, the successful bidder shall ensure that replacement equipment is provided on the 2hr mark. Thereby allowing operations to resume without further delay. Equipment refuelling must be done outside of normal working hours i.e. supplied by the successful bidder s refuelling mobile bowsers which should be available onsite at all times. Please note the following: All Drivers/Operators must possess valid Driver s/operator s Licenses in terms of the National Road Traffic Act No 93 of 1996 as well as any other relevant Operators licence or permit as required by South African Law and all other relevant legislation. The successful bidder must have a broad form of current and valid insurance liability cover which includes Professional Indemnity Insurance/Professional Liability Insurance/General Insurance/Public Liability Insurance with a minimum indemnity limit of R (ten million rand) per incident. 6

7 TPT may conduct random inspections to verify the equipment condition at all times before offloading at TPT s own discretion without any prior consultation with the successful serviced provider EQUIPMENT OPERATION The successful bidder shall provide the equipment on a 24 hours a day, seven days a week basis. TPT, will wherever possible, endeavour to give early notification of equipment requirements. TPT reserves the right to terminate the activities of the equipment; should TPT deem it necessary, dependent on Operational requirements. The successful bidder s personnel must have the requisite knowledge, skill and experience required to perform the required work REPORTING It is a compulsory requirement that the Successful bidders Operators Tonnage Reconciliation Sheets must be signed by both the successful bidder s representative as well as a TPT representative in accordance with the Terminal Manager s requirements. The original must be handed to the Terminal Manager for safekeeping. The reconciliation on the agreed handled tonnages must be signed off by the successful bidder s Manager and the TPT Operations Supervisor on completion of the operation at the point of exit from the terminal on a weekly basis. The successful bidder shall immediately advise the Operations Manager of all breakdowns and the replacement plan. The successful bidder shall submit the reason for the non-availability together with the remedial action to be taken. All actions taken to repair or replace will be within 1 and 2 hours as outlined in above RECONCILIATION METHODOLOGY: Transnet Port Terminals will reconcile volumes (tonnage) and base the payment solely on cargo handled by the successful bidder, as per cargo handling processes referenced above, after the point of exiting the terminal. The successful bidder will produce proof (i.e. document) signed by TPT Operational representative, that he or she has handled the cargo or volumes in question. The document will clearly indicate tonnage handled, date and time. Successful bidders representative s name and TPT representative name and company number. All invoices will be reconciled and signed off by Terminal Managers. 7

8 Please note, TPT reserves the right to change the commodity norm/targets as and when required based on commercial commitments. NB:- A GRAPHICAL ILLUSTRATION OF THE PROCESSES OF HANDLING THE RESPECTIVE ABOVE MENTIONED CARGO IS RECORDED UNDER PARAGRAPH 5 OF THIS SCOPE-OF-WORK DOCUMENT 3.4 SHIFT PATTERNS: The successful bidder s shift pattern will be aligned with that of the Terminal(s). The current shift patterns are as follows:- Week days (i.e. Monday Friday) 06h00 14h00 14h00 22h00 22h00 06h00 Weekends and Public Holidays 06h00 18h00 18h00 06h00 NB: Although these are the current shift patterns, TPT reserves the right to change the shift patterns without consulting the successful bidder and would expect the successful bidder to align their shift patterns with that of TPT s. Note: The operation is 24 hours per day 7 days per week, dependent on the availability of the cargo. 4 SPECIFIC DELIVERABLES FOR THE TENDER PROCESS The Bidder to submit his quote in the form of a rate per ton as follows: Description Excavator Front end loaders TOTAL Rate per ton 8

9 Total estimated volume = tons The Bidder to submit a Minimum of Two (2) signed Trade Reference Letters from existing / previous clients, on the clients' letterhead and must not be dated older than 5 years The Bidder to provide proof of Mobile Diesel tanker whether owned/leased The Bidder must provide minimum 9 tons capacity Front End Loader and 9 tons capacity Excavator whether owned/leased The Bidder must submit a full SHE safety file. The Bidder must prove their ability to supply all equipment and related Services to the Lohatlha Inland Terminal. The Bidder must submit a proven track record of minimum 5 years experience of handling bulk & break bulk commodities The Bidder must prove their ability to provide On-site Technical support highlighted in the Equipment Breakdown Plan referred to below. The Bidder must confirm that should they be awarded the business, they will have a two-way communication system and a minimum of 4 handheld radios. Equipment Break down Plan: The successful bidder will provide response time with Technical support onsite. TPT s preference is a response time of one (1) hour from call logging for Technical onsite support. A third Front End Loader must be on stand-by should there be a breakdown. Total assets register: This will include a maintenance plan with all necessary Technical support requirements. 9

10 5 GRAPHICAL ILLUSTRATION OF PROCESS FLOWS IT IS IMPORTANT TO NOTE THAT CARGO TONNAGES WILL BE RECONCILED TO THE ACTUAL TONNAGES LOADED ONTO RAIL TRUCKS (i.e. Cargo that has exited the terminal). PAYMENT WILL ONLY BE MADE TO THE SUCCESSFUL BIDDER AT THIS POINT. 10