Transnet: The Ngqura expansion project Cleopatra Shiceka: General Manager in the Office of the CE, TFR
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1 Transnet: The Ngqura expansion project Cleopatra Shiceka: General Manager in the Office of the CE, TFR International Manganese Institute 40th Annual Conference, Cape Town 30 May 2014
2 Contents Project Introduction Technical Overview Supporting emerging miners Socio-economic impact Phase 1 Progress Conclusion PAGE 1
3 Environmental considerations necessitate the closure of the Mn facilities in Port Elizabeth South Africa manganese ore exports 2012 Mtpa Richards Bay Durban Port Elizabeth +14% p.a PE (rail); Durban (rail and road); R Bay (road) 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 PAGE 2
4 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 Rail route Hotazel Sishen Lohathla De Aar Durban Noupoort Cape Town Ngqura PAGE 3
5 The integrated Ngqura solution provides 16 Mtpa of capacity by 2020 by leveraging existing port assets and meets our broader strategic mandate Transnet objectives How this project meets objectives Reduce the cost of doing business Facilitate sustainable growth of our customers 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 Drive socioeconomic development 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 PAGE 4
6 Phase 1 Phase 2 The rail operating philosophy introduces heavy haul operating principles Road haul Mamathwane Common User Facility 100 wagon rail shuttles Mainline Rail Operations 200 wagon, 20tal, distributed power train Base-load Customers (Category 1): Mines with rail facilities. New entrants (Category 2): Mines with no rail facilities. PAGE 5
7 The rail solution takes advantage of existing infrastructure, and maximises capacity by using new technologies Section: Mamathwane to Kimberley 1 x loop north of Mamathwane 4 x loops lengthened 1 x new loop 3kV DC upgrade Rolling stock Upgrade 1527 existing CR wagons Build 1673 new CR wagons 109 new Dual Voltage Locomotives 12 Diesel Locomotives Mamathwane Compilation Yard (3) Winconton Tsantsabane Glosam Postmasburg Partial Doubling of Line From Beaconsfield To De Aar (Phase 1) (1) Section : Kimberley to De Aar Partial doubling of 97km Northern Cape Witloop Sishen New Loop Trewill 25Kv AC Upgrade Linde Western Cape Wagon maintenance depot Loco prep depot Satellite Command Centre Satellite Operations Planning North West Centre 3Kv DC Upgrade (4) Burgervilleweg Coega Compilation Yard Mamathwane Compilation Yard C Free state Beaconsfield On the Fly Change-over Facility 25Kv AC Upgrade (6) Rosmead loop extension Tafelberg Knutsford Drennan Cookhouse - Golden Valley (5) Verby Coega Ngqura Gauteng Mamathwane common user facility Lesotho Eastern Cape Wagon Maintenance Facilities Locomotive Maintenance Facilities New infrastructure Loop extension Other Phase 1 Phase 2 Section: De Aar to Coega 25kV AC upgrade Section doubling Cookhouse Golden Valley 7 x loops lengthened Coega Compilation Yard PAGE 6
8 The port solution utilises existing berths and is scalable The port scope (Take- off point from the Coega river bridge ) 1 Arrival and departure yard 2 Existing berths C101 and C100 Coega River Coega River Rail Bridge 7 Rail Mainline N2 Highway Two ship-loaders capable of loading up to two 80,000 DWT Panamax size vessels simultaneously Three stackers and related stockyard conveyors to stack ore on the stockpiles, with provision to add a fourth stacker in future Two reclaimers and related stockyard conveyors to reclaim ore from the stockpiles, with provision to add a third reclaimer in future 6 Four stockyard rows, with provision to add two additional rows in future 7 Dual surge bins at the stockyards to optimize ship loading efficiency PAGE 7
9 The needs of emerging miners are met through the provision of a common user loading terminal 1 Mamathwane Compilation Yard: Centre of Gravity for train compilation and product consolidation Hotazel CUF Phase Lohatlha CUF Phase 2 11 Postmasburg PAGE 8
10 Document support Terminal Plan Joint planning, management & control is critical to achieving system throughput, operational efficiency levels and asset utilisation targets Rail allocation Ship allocation Port stock allocation MINE ARM UMK M T W T F S S Mini Parcel Ship ETA X A 1 SP1 SP2 SP3 SP3 A B Sam Y B 2 C Other Z C 3 D Operations Logistics TFR Infra Wagon maintenance Loco maintenance Track maintenance PE PMG MMT KBY DER MMT Manganese SOC Communication Planning Visibility KBY PE Port TNPA Terminal Communication Planning Visibility Ships Gloria Hotazel AMR UMK Mines UMK Mine Houses CUF Saman cor Smaller mines Nchwaneng Blackrock Wessels PAGE 9
11 More than 30,000 jobs will be created along the project geography Jobs (approximation) Construction jobs 1 Northern Cape Eastern Cape Rail: ~66% Port: ~34% 8,300 3,500 18,600 13,900 5,800 8,100 32,500 13, ,100 4,800 7, , ,300 4,300 10,800 Permanent jobs Area No. of jobs Mining 2 ~24,500 Description Professional labour Skilled labour Semiskilled labour Informal labour Total direct jobs Indirect jobs 13,828 direct mining jobs based on 500 direct jobs per million tons of ore, 10,695 (indirect and induced) Total Port Rail ~250 ~500 Derived from Saldanha terminal operations Represents additional personnel required for operations, infrastructure maintenance and rolling stock maintenance 1 Mn business case DTI 2011 and Industrial Policy Action Plan 2011 PAGE 10
12 Significant progress has been made with Phase 1 Scope: Reinstatement of loops and formation rehabilitation between Kimberley and De Aar and the extension of the Rosmead passing loop. ETC: R2.38 billion Km 193 Km 39 Km 36 Modder River Bridge Km 10 Rail Phase 1 Project Status Km 227 Km 218 Km 217 Km 199 PAGE 11
13 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 PAGE 12 1
14 Thank You
The following buildings/facilities are included in the design of this Project:
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