25-YEAR INTEGRATED TRANSPORT MASTER PLAN Annexure I: Freight Strategy

Transcription

1 GAUTENG 25-YEAR INTEGRATED TRANSPORT MASTER PLAN 25-YEAR INTEGRATED TRANSPORT MASTER PLAN Annexure I: Freight Strategy November 2013 Final

2 GAUTENG 25-YEAR INTEGRATED TRANSPORT MASTER PLAN ANNEXURE I: FREIGHT PLAN CONTENTS Chapter Description Page 1 STATUS QUO SUMMARY Road and Rail Freight Rail Terminals Automotive Terminals Pipelines Logistic costs 12 2 KEY ROLE PLAYERS 16 3 PROBLEM STATEMENT AND ISSUES 16 4 KEY POINTS OF DEPARTURE 22 5 HIGH-LEVEL NETWORK DESCRIPTION 24 6 STRATEGIES Establish a Freight Bypass Road and Rail Capacity on the Periphery of Gauteng Establish Mechanisms to Ensure the Move of Freight from Road to Rail Establish the Required Intermodal Infrastructure to Support the Freight Bypass Concept Road Freight Bypass must be able to Support Abnormal Loads Establish Sufficient Public Transport Capacity at Freight Intermodal Facilities Overload control at intermodal facilities 32 (a) Existing weighbridges 33 (b) Gauteng Overload Control Strategy Externality cost 35 7 SUPPORT OF ITPM25 FOUNDING PRINCIPLES 37 ITMP25 Final Report

3 8 KEY CAPITAL PROJECTS & BUDGETS Key Road Projects Establish intermodal Terminals Rail Projects 39 ITMP25 Final Report

4 1 STATUS QUO SUMMARY A fundamental prerequisite for growth is the expansion of trade. However, it is the transport linkages that enable the exploitation and development of natural and human resources. Therefore, a country or region that has an inefficient and ineffective transport sector, would find it extremely difficult, if not impossible, to trade competitively. A region that is well equipped to receive, sort and rapidly deliver goods and services cheaply and effectively stands to profit considerably from these abilities. On the other hand, deficiencies in this regard severely retard competitiveness and as a result encourage the transfer of economic activity to more favourable locations. By providing infrastructure, facilitating collaboration between government and the private sector and by means of appropriate regulation of the freight transport industry, the provincial government could play a considerable role in ensuring that Gauteng is an attractive location for establishing and continuing with sustainable business. Transportation of freight is a vital element in planning for prosperity, albeit one that tends to have been superficially dealt with in transportation planning departments at all levels of government. The overarching objectives of all freight transport are by definition, the economic efficiency of the movement of goods so that freight transport policy and investment is primarily directed at creating conditions that support that objective. In South Africa a very large proportion of freight transport movement is provided by parastatal government monopoly organisations affiliated to railways, ports, pipelines, and air transport. Figure 1.1 shows the importance of the Gauteng Province in the movement of freight throughout South Africa. In compiling the ITMP25 for Gauteng, the Freight Logistics Plan (FLP) forms an integral part of the total planning process. The aspects discussed in this report include: The Gauteng freight transport profile Planned infrastructure. Figure 1.1 clearly illustrates that Gauteng forms the main artery to all the ports and SADC. ITMP25 Final Report 1

5 Figure Importance of Gauteng in the movement of freight throughout South Africa (All traffic - road, rail, pipe, air- Year 2041) Source: Transnet 1.1 Road and Rail Freight Table 1.1 reflects the Gauteng road network as it relates to the national road network. Table Gauteng Road Network National Road Network Provincial Network (Paved + unpaved Local Network Total Gauteng (km) National (km) Gauteng (%) 3.63 % 2.82% 14.41% 8.12% Source: NATMAP The national rail network consists of more than km of track. The actual route distance is about km. The network provides excellent coverage of most of South Africa from a freight demand point. The network also covers all of the major commercial and consumer areas. The core rail network provides access to all the ports and SADC. With the formation of a unified rail system in 1910, the SAR&H was mandated to be a stimulus for growth and by 1930 much of the network that we see today was already ITMP25 Final Report 2

6 built. Since the end of the 1980s hardly any new lines were built and freight concentration considerations influenced the focus on main corridors maintenance and capacity enhancements. Figure 1.2 Rail Network throughout South Africa Source: Transnet It is important to understand that freight was regulated until The impact of that was that up to 80% of all freight was transported by rail. Since deregulation freight has moved from rail to road. The core network has provided linkages to all the heavy industrial areas to service the following industries: Cement Manufacturing (Steel, cables, steel coils) Oil and Petroleum Power station Grain and maize Chemicals These industries are all associated with raw materials and heavy manufactured products. In contrast logistics facilities and light industrial areas have started to develop around the core road networks, while express cargo facilities are close to airports. Freight generated from logistics facilities and light industrial areas can be classified as fast moving consumer products and is transported by road. ITMP25 Final Report 3

7 There are more than 100 registered industrial areas in Gauteng, many of which are very extensive and are major generators of road freight transport. These industrial areas use road freight transport for steel, cement, consumer-manufactured goods, heavy industrial steel and concrete structures, ready-mix concrete, retail and wholesale distribution of foodstuff and meat and vegetables. One feature of road freight operations in Gauteng is the extent to which bulk commodities such as steel, coal, cement, and bulk grains have moved from rail transport to road. The efficiency of road freight transport in Gauteng is increasingly being reduced because of the congestion on the main through routes in urban areas. In order to improve operational efficiency in the CBDs there is a need for urgent reassessment of the accessibility of some industrial areas and container terminals in relation to the newer industrial areas. A feature of the management of road freight operations in the Gauteng area has been the inconsistent and ineffective control of overloading. Weighbridge locations are unsuitable and the levels of activity are generally incapable of restraining the practice of overloading. Increasing congestion is leading to conflict between light and heavy vehicles at peak periods so that accident rates involving heavy goods vehicles are increasing all over the province. Figure illustrates the major routes of heavy vehicles in Gauteng. ITMP25 Final Report 4

8 Figure Current Heavy Vehicle Flow on the Gauteng Road Network ITMP25 Final Report 5

9 1.2 Rail Terminals One of the biggest growth areas will be containerised freight and fast moving consumer products. Currently, Gauteng has limited rail and terminal capacity to accommodate the potential growth in this industry. The existing facilities are located in the CBDs with limited or inadequate road accessibility. Figure 1.4 depicts the location of the terminals in Gauteng as well as the throughput in Figure 1.4 Terminals in Gauteng Source: Transnet Tables 1.2 to 1.6 describe the characteristics of each terminal in more detail. Dunnottar, Vaalcon, Pretcon and Rosscon have limited capacity capabilities and will be phased out in the future with the new generation mega terminals. City Deep has the potential to be upgraded which include the stacking surface and new handling equipment. A new terminal can be developed on the vacant of land of Kaserne which will provide additional capacity. This type of development would include extensive road upgrades to accommodate the increase in heavy vehicles. ITMP25 Final Report 6

10 Table 1.2: City Deep Precinct City Deep Kascon Private operators Source: Google earth City Deep Terminal Intermodal Import/Export facility and stacking of empty TEUs Stacking area 5967 TEUs Number of Rail tracks 4 x 50 wagons Throughput in container movements Number of trains per day 8 per day Operating hours Daylight Road access M2, M19,N17, M31 Future capacity TEUs by upgarding existing facility Constraints Resticted line capacity from Natal main line Share line with metro service Shunt from Kaserne yard Road network around terminal is congested due to private sidings operations (Queuing of heavy vehicles) Private sidings Warehousing, stuffing and destuffing and stacking of empty of TEUs Stacking area At operators Number of Rail tracks Varies between 1 and 2 at the operators Throughput in TEUs Number of trains per day 2 trains per day Operating hours Daylight Road access M19, M31 and Rosherville road Constraints Limited capacity to grow Siding length Capacity of yard Extreme congestion of access road Kascon Terminal Local market, warehousing, empty TEU s Stacking area 586 TEUs Number of Rail tracks 3 x 25 wagon tracks Throughput in container movement Number of trains per day 2 trains per day Operating hours Daylight Road access M31, M2 Constraints Restricted capacity on rail network Road congestion Access to the Site Infrastructure at the site ITMP25 Final Report 7

11 Table 1.3: Pretcon Terminal in Pretoria CBD Capital Park yard Pretcon Source: Google earth Stacking area 1194 TEUs Number of Rail tracks 2 x 50 wagon track Throughput in container movements Number of trains per day 1 train per day Operating hours Daylight Road access Paul Kruger road Constraints Rail access to the site through metro lines Restricted road access Site next to residentail area Table 1.4: Rosslyn Terminal in Rosslyn and close to Rosslyn station Source: Google earth Rosscon has no container activities Loading chrome at the site Road access to the site is limit Rail access to the site through metro lines Table 1.5: Eastcon at Dunnottar station Source: Google earth Stacking area Limited capacity Number of Rail tracks 3 x 25 wagons track Throughput in container movements Number of trains per day 2 per day Operating hours Daylight Road access M45 Constraints Road access Feeder service to Kaserne Length of track ITMP25 Final Report 8

12 Table 1.6: Vaalcon site in Vanderbijlpark Next to residential area Source: Google earth Stacking area 1422 TEUs Number of Rail tracks 2 x 35 wagons Throughput in container movements Number of trains per day 2 x 35 wagon trains per day Operating hours Day light Road access Dirt road through residential area Constraints Road access from the R59 is difficult. Branch line to power station run north of the terminal Offloading only on the inner side of the terminal. The curved shape of the terminal constrains operations and reduces stacking capacity significantly. Capacity to extend or to increase capacity is limited 1.3 Automotive Terminals Figure 1.4 illustrates the location of the automotive terminal at Kaalfontein close to Olifantsfontein. This terminal is mainly used for imported vehicles. The vehicles arrive by train from Durban, East London and Port Elizabeth where it is offloaded and parked in bays. These vehicles are then finally distributed into Gauteng and the surrounding regions. Rosslyn, the automotive cluster, is located northwest of Pretoria. The automotive cluster includes motor manufactures like BMW and Nissan as well as manufactures supporting the motor industry. BMW and Nissan s vehicles are distributed from Rosslyn by road vehicles, the export vehicles are transported by road and train to the ports. Samcor (Ford and Mazda) is located in Silverton, northwest of Pretoria and is responsible for the distribution of their cars by rail and road. ITMP25 Final Report 9

13 1.4 Pipelines The transportation of liquids by pipeline is a major transportation undertaking in Gauteng. There are two main pipelines that supply the interior, via Gauteng: The Refined Products Pipeline, a 300 mm line from Durban to Sasolburg (Coalbrook); The Crude oil line, a 400 mm pipeline that conveys crude oil from Durban's offshore mooring buoy to the Reef storage and inland refinery. Pipelines in Gauteng Province emanate from Coalbrook (near Sasolburg) in the Free State and Secunda in Mpumalanga. The pipeline from Coalbrook has road and rail off-take points in Gauteng at Alrode, Langlaagte, Tarlton, Rustenburg, Pretoria West, Waltloo and Benoni. An additional line from Secunda joins this pipeline to the south of Johannesburg and also intersects with a second pipeline from Coalbrook to Witbank, which also passes through Gauteng. Approximately 3.6 billion litres of refined fuel is transported through Gauteng to various delivery points. A third pipeline from Coalbrook supplies aviation fuel directly to Johannesburg International Airport. In 2006/07, this line transported 1.15 billion litres which equates to approximately tonnes. Products transported include, gas, aviation turbine fuel, crude oil, diesel, alcohol, and various grades of petrol. The pipelines from the coast currently move approximately 8,7 billion litres of refined products and crude oil per annum. The refined products line had the potential for expanding up until about the year 2007 whereas the crude oil line was already running at near capacity in The presence of the pipelines in the province constitutes a major transportation asset, as the large volumes transported would otherwise be moved by rail where possible, or by road, thereby increasing road usage and congestion.the location of the pipelines is shown in Figure 1.5. The facilities at Waltloo, Alrode and Tarlton have increased their respective storage capacity recently. Jameson Park, a new storage facility is currently under construction and could be operational in It can be expected that these facilities will contribute significantly to the number of heavy vehicles in Gauteng in the next 25 years. Table 1.7 depicts the layout and extent of each fuel tank facility. In the next 25 years a number of the fuel tanks will reach the end of their life design cycle and could become a safety hazard. Capacity to expand becomes limited at Albertpark and Waltloo and therefore to move these facilities to the periphery of Gauteng will relieve pressure on the road network. ITMP25 Final Report 10

14 Figure Location of existing and future Pipelines Table 1.7: Fuel Storage Facilities in Gauteng Albertpark in Alrode Tarlton Source: Google earth Supply to Gauteng Waltloo Source: Google earth Supply Botswane and Northern and Northwest region Jamesonpark Source: Google earth Supply Gauteng and Northern region Source: Google earth New Facility ITMP25 Final Report 11

15 1.5 Logistic costs According to the 9 th state of logistic survey: Logistics costs as a percentage of total GDP have risen by 0.7% to 12.6% in 2011 and are estimated to have risen to 12.8% in Logistics costs as a percentage of the transportable GDP was 44% in 2011 and 46% in The upward trend of transport costs was identified as a major risk in previous surveys. Its contribution to overall logistics costs in 2012 is pinned at 61%, the highest it has been in the past nine years and far higher than the global average. The vulnerability of transport costs to a volatile exogenous cost driver the price of crude oil and South Africa s entrenched dependence on road transport does not bode well for the economy if the future is to be business-as-usual. Inland freight volumes have risen across the board in 2011 (+4.9% in tonnes, +10.1% in tonne-km) and 2012 (+1.8% in tonnes, +2.1% in tonne-km) with the most significant growth being on the KwaZulu-Natal Gauteng and Western Cape Gauteng corridors. Worth noting is the slight increase in overall rail market share, from 11.1% in 2010 to 11.5% in 2012 in terms of tonnes, and from 29.3% in 2010 to 29.9% in 2012 in terms of tonne-km. Figure 1.6 shows the trend in logistic cost components and GDP comparison Figure 1.6: Trend in logistic cost components and GDP comparison Source: 9 th State of Logistic Survey for South Africa 2012 ITMP25 Final Report 12

16 According to Figure 1.6, transport cost contributes 60% to logistic cost in South Africa. Considering the different elements of transport cost (Fuel, wages, depreciation, investment, maintenance, insurance, tyres, toll fees and license), fuel cost is the biggest contributor to the transport as indicated in Figure 1.7. Figure 1.7: Road transport cost component Figure 1.8 illustrates the logistic costs components and GDP comparison per region. Out of the total transport cost of South Africa, 66.2% occurs in Western Cape, Gauteng, Mpumalanga and KwaZulu-Natal (KZN). Gauteng, Mpumalanga and KZN are mainly responsible for the imports and exports of products through Port of Durban and Port of Richards Bay. This flow of traffic has a direct impact on the rail and road network of Gauteng. ITMP25 Final Report 13

17 Figure 1.8: South Africa s logistics cost components and GDP comparison Source: 9 th State of Logistic Survey for South Africa 2012 According to the 9 th state of logistic, the KZN to Gauteng and Western Cape to Gauteng have transported the largest volumes of tonnes with an increase of 15.9% between 2010 and Figure 1.9 and 1.10 depicts the road and rail freight volume for 2011 and In comparing Figure 1.9 (2011) and Figure 1.10 (2012) an increase in tonnage of 1.8% are recorded with an increase of 2.1% in tonne-km. ITMP25 Final Report 14

18 Figure 1.9: Road and rail freight volumes for 2011 Source: 9 th State of Logistic Survey for South Africa 2012 Figure 1.10: Road and rail freight volumes for 2012 Source: 9 th State of Logistic Survey for South Africa 2012 ITMP25 Final Report 15

19 2 KEY ROLE PLAYERS The following are the key role players and decision makers in developing infrastructure in Gauteng Department of Transport (DoT) Department of Public Enterprises (DPE) Transnet Prasa Department of Transport Gauteng Department of Public Works SANRAL Metropolitans municipalities Local municipalities Department of Economic Development Strategic Integrated Programs on National Level Department of Environmental Affairs Department of Trade and Industry Private sector 3 PROBLEM STATEMENT AND ISSUES Transnet has analysed the potential market demand up to Figure 3.1 depicts Transnet s projected surface demand for all commodity types in South Africa. The result and extent of freight in 2041 will have a significant impact on road and rail. Surface freight represents all transport modes which includes conveyors systems, road, rail and pipelines. ITMP25 Final Report 16

20 Figure 3.1: Projected Surface Freight Demand for road, rail, pipe, air (mton) Source: Transnet 2012 It is clear from Figure 3.1 that the Port of Saldanha (Iron ore) and Port of Richards Bay (Coal) handles the largest volume of freight. Ngqura at Port Elizabeth and Cape Town are the other two corridors supplying general freight (including TEUs) from Gauteng. Although Richards Bay also handles general cargo it can be classified as minerals or steel products. Table 3.1: Freight Demand on KZN corridor 2011 mton 2041 mton Gauteng to Durban Durban to Gauteng Increase (Multiplier) Table 3.1 gives an indication of the potential freight on the Gauteng to Durban corridor. Given the multiplier effect of potential freight and the reality that the bulk of the freight is transported on road, the impact on the road network in Gauteng could be severely affected from a volume capacity ratio and design perspective. Further, Durban is largest container port in South Africa. Durban, Cape Town and Ngqura are the main ports supplying containers and general freight to Gauteng. Figure 3.2 provides a breakdown of the landscape of freight in South Africa. Mining contributes ± 48% of the total cargo in South Africa ITMP25 Final Report 17

21 Figure 3.2: Potential Surface Freight in South Africa Source: Transnet The above table gives an indication of the freight suitable for rail and the projections of Transnet s increase in market share. Besides the iron ore export and coal export in 2011, Transnet has transported less than 200 mton on rail. Figure 3.3 depicts the Transnet Market Demand strategy for the next 7 years. Transnet demand for containers, manganese, liquid bulk and automotive is directly linked to the planned port developments. Figure 3.3: Transnet Market Demand Forecast up to 2018/19 ITMP25 Final Report 18

22 The freight growth as reflected in Figure 3.3 has a direct impact on Gauteng. The Transnet capacity expansion programmes in Durban include the following projects: Increase capacity through efficiency improvement programmes at the existing port terminals; Develop the old airport site into a sea port for containers (9.6 million TEUs) and an automotive terminal close to Toyota. The total estimate TEU capacity in 2041 will be 13.9 million TEUs between the existing Port of Durban and the new sea port. The Port of Ngqura close to Port Elizabeth can contribute an additional 4.1 million TEUs. The flow of traffic on the freeway network in Gauteng is illustrated in Figure 3.4. The N3 between Durban and Gauteng carries the most long heavy vehicles (5 axles and more). Table 3.2 illustrates the type of heavy vehicles on the road. This type of vehicles represents the bulk of freight between Durban and Gauteng. The long heavy vehicles from the N4 West, N4 East carry commodities such as coal, chrome, ferro chrome and cargo from Botswana. Long heavy vehicles from the north carry commodities from SADC which includes copper and cobalt. Some of the minerals from the N4 and N1 north find their way through Gauteng to City Deep and the N3 to Durban for export. The impact of the volume of heavy vehicles is currently noticeable during peak hours. The movement of the above heavy vehicles are mainly limited to the N1, N3, R21, N12, N17 and N14 in Gauteng. ITMP25 Final Report 19

23 Table 3.2: Type of long heavy vehicles Import and export Containers between Gauteng and Port of Durban Vehicle type 5, 6 and 7 axle vehicles Imported vehicles from the port to Kaalfontain Exported vehicles from BMW, Nissan from Rosslyn and Samcor in Waltloo cose to Silverton Fuel tanks from KZN to fuel Depots, airports and dealers Vehicle type 5, 6 and 7 axle vehicles Breakbulk/Pallletized freight (Fast moving consumer products) Combine freight Bulk Freight (stuffed and de-stuffed) ITMP25 Final Report 20

24 \ Figure 3.4: Traffic volumes in 2012 Source: Adopted from SANRAL CTO information Note: TV = Total vehicles, THV = Total heavy vehicles, LHV = Long heavy vehicles (5 and more axles) ITMP25 Final Report 21

25 The devolution of freight and the impact thereof in Gauteng can be described as follows: Rail infrastructure was provided to the heavy industrial areas prior 1970 with no new rail infrastructure thereafter; Deregulation of rail as the preferred transport mode in 1988 resulted that the bulk of general freight has moved to road; Freight intermodal terminals are located in the CBDs of Gauteng with residential development around them; Access to the terminals are limited and is highly congested during peak hours; Heavy vehicles contribute to several incidents in the CBDs and on Freeways; Light industrial development areas and logistic parks have developed next to the freeway network (N1, N3, N12, N14 and R21); Office parks have developed next to the Freeways to support light industrial development; The expected population growth and freight growth can have a significant impact on the freeway network system; Overload control in Gauteng is non-existent; Distribution Centres of Pick & Pay, MassMart, Spar, Woolworths and Checkers are developed in the CBD which causes congestion on the road network; Supply of fuel from the existing tank facilities during peak hours is a risk and safety hazard; Limited public transport capacity to industrial facilities; The rail network does not have sufficient capacity or terminals to supply current and future demand. 4 KEY POINTS OF DEPARTURE The National Development Plan (NDP) which has been acknowledged and endorsed by Cabinet on the 07th September 2012 as a strategic framework to form the basis of future government detailed planning states that: By 2030, the Durban-Gauteng freight corridor should be a model for how to strengthen and optimise freight corridors. As the corridor that handles most of the country's high-value freight, it is the first priority. It is also the most strategic corridor to achieve a shift of freight from road to rail by overcoming rail's main drawback lack of intermodal flexibility by improving the performance of terminals on either end. It could demonstrate that the institutional model needed for corridor improvement rests with aligning the interests of cities with authorities across all tiers of government, as well as the transport operators that connect the intervening space. Gauteng, the key node to all the ports and SADC experiences a number of constraints from a transport, freight logistics, supply chain and the lack of law enforcement perspective. These constraints can be limited through the ITMP25 Final Report 22

26 implementations of intermodal facilities, rail and road infrastructure, intelligent transport systems to manage freight and vehicles and lastly law enforcement systems. Figure 4.1 gives an overview of the extent of development on the Gauteng to Durban corridor. Figure 4.1: Developments on the Gauteng to Durban corridor Source: SIP2 The impact of the of the developments depicts in Figure 4.1 includes the following Eskom distribution lines; Freight inland intermodal terminals; Road networks; Rail upgrades and new infrastructure; Land use and Socio economic development, Public transport. The following key principles and departure points are considered in developing the freight strategy for the ITPM25 plan, namely o Identify freight growth corridors and nodes; o Decrease the number of heavy freight vehicles in the CBDs by providing a freight bypass road and rail facility; o Establish freight intermodal facilities on the eastern periphery of Gauteng; o Adequate linkages outside the province (i.e. Gauteng KZN Corridor); o Align freight intermodal facilities with Transnet s Container Strategy for Gauteng and Durban port developments; ITMP25 Final Report 23

27 o Provide supporting infrastructure to freight intermodal facilities; o Provide adequate overload control mechanisms at freight intermodal facilities; o Provide for adequate public transport to the planned freight intermodal facilities and associated developments around it; o Provide for adequate levels of safety and security. 5 HIGH-LEVEL NETWORK DESCRIPTION It is anticipated that Transnet will develop mega terminals on the periphery of Gauteng to accommodate containers, palletized freight and automotive. The location of these terminals is indicated in Figure 5.1. Figure 5.1: Future Intermodal Terminals in Gauteng Source: Transnet 2013 The capacity in the City Deep precinct will be increased with the new terminal at Kaserne. The above terminals will be supported by two cluster terminals in the West rand and Emfuleni. The role of the automotive terminal at Kaalfontein could change or even be phased out with the development of automotive terminals at Pyramid and Sentrarand. Rosslyn automotive cluster will function as planned with Pyramid as the automotive terminal to export cars or distribute imported cars into Pretoria, North West and Polokwane. By establishing the freight terminals on the periphery means that the cargo can move in bulk to the terminals where it is packed into containers for export. A good example is the transport of cobalt, cotton and tobacco by road from Zimbabwe to City Deep where it is packed into containers and railed to Durban. With a terminal at Pyramid this traffic will only be transported to the Pyramid terminal where it will be packed into ITMP25 Final Report 24

28 containers and railed to Durban. This will take off approximately heavy vehicles per annum off the R21. The proposed freight terminals on the freight bypass road and rail lines will provide the opportunity to establish light industrial development and office parks around these terminals which will require an effective public transport system and/or the establishment of towns close to the terminals. The opportunity exists for retailers to build their distribution centres at the freight terminals from where final distribution will take place. Figure 5.2 illustrates the phasing of mega terminals. According to Figure 5.2, Tambo Springs must be operational in 2019/2020 followed by Pyramid in Pyramid could be fast tracked if the need for such a development justifies it. All the developments are subject to market demand and market supply. The need for intermodal terminals could further increase if all 5 and more axle vehicles only operate on the freight bypass. Figure 5.2: Phasing of Gauteng Terminals Source: Adapted from Transnet The smaller terminals Pretcon, Rosscon, Eastcon and Vaalcon will be phased out over time due to their location in residential areas and the limitations to develop the terminals further. The West rand terminals and new Vaal logistic hub will be cluster terminals. Freight coming from these two terminals will be consolidated at the mega terminals. ITMP25 Final Report 25

29 Freight terminals require an integrated road system and access roads: To facilitate the flow of heavy vehicles on the freight bypass road; To facilitate the distribution of smaller consignments of cargo between the terminals and CBDs. Figure 5.3 illustrates the expected change in flow pattern of heavy vehicles by introducing the proposed freight bypass road and rail (refer to Figure for the current main heavy vehicle travel patterns). Vehicles from the N1 north of Pretoria will enter the freight bypass road PWV 2 east towards the PWV 17, turning south to link up with the PWV, N3, PWV 18, R59 and N1. The Gauteng North 2037 network includes freight bypass roads PWV 2 and PWV 17, Terminals at Pyramid and the new fuel tank facility (Relocate Waltloo). The Gauteng South 2037 network includes freight bypass roads PWV 17, PWV 5, a section of PWV 18, terminals at Sentrarand and Tambo Springs, and New Jameson Park Fuel Tank Facility. Figure 5.4 illustrates the 2037 heavy vehicle flow pattern as simulated. The new infrastructure PWV 2, PWV5, PWV 9, sections of PWV 18 and PWV 17 will carry the bulk of the freight on the ring road network which supports all the intermodal terminals. The bypass road system will pull vehicles from the N12 coming from Klerksdorp on the R54 to the N1; N1 to the PWV 18, PWV 18 to PWV 2; PWV 2 to the N4 west or N1. The ring road will relieve congestion problems due to heavy vehicles on the following major roads: N12 from Potchefstroom to Johannesburg; N1 from Vanderbijlpark through Gauteng towards the N1 north of Pretoria; N17 South of Johannesburg; N3 from Tambo Springs towards Johannesburg; N12 East into Johannesburg (From PWV17); Traffic on the R28 and N14; N4 East and N4 West into Pretoria. Table 5.1 describes the terminal and the roads connected to each table as well as the functionality of each terminal. ITMP25 Final Report 26

30 Figure 5.3: Change in the Flow of Heavy Vehicles with the new Gauteng Road Network (2037) ITMP25 Final Report 27

31 Table 5.1 Future Intermodal Terminals Terminal Existing feeding roads New roads Pyramid 1 x Container rail terminal 1 x Palletized rail terminal An Automotive terminal for import and export with parking bays o Land acquisition o Rail terminal & equipment o Stacking capacity o Warehousing o Truck stop/truck staging facility o Fuel tank facility o Distribution centre Sentrarand 4 x Container rail terminals 2 x Palletized rail terminals Automotive terminal for import and export with parking bays o Transnet land o Rail terminal & equipment o Stacking capacity o Warehousing o Truck stop/truck staging facility required N1, R101, N4 east, N4 west, PWV 2, PWV 17, PWV 9, K6, K9, K63 upgrade, interchanges Market Pretoria and Northern region North West province Limpopo Mpumalanga SADC N1, R21 PWV 5, PWV 17, interchanges Market Midrand KZN and Mpumalanga Central and Northern JHB CBD SADC Terminal Existing feeding roads New roads required Tambo Springs 2 x Container rail terminals 1 x Palletized rail terminal N3, R59, N1 PWV 18, PWV 17, interchanges o Land acquisition o Rail terminal & equipment Market o Stacking capacity Southern JHB CBD o Warehousing Vereeniging o Truck stop/truck staging facility Free state, Cape provinces Vaal logistic Hub (figure 5.1) Small container terminal o Land acquisition o Rail terminal & equipment o Stacking capacity o Warehousing o Truck stop/truck staging facility Terminal at West Rand (figure 5.1) Small rail container terminal o Land acquisition o Rail terminal & equipment o Stacking capacity o Warehousing o Truck stop/truck staging facility o Rail link to terminal R533 to Potchefstroom R28 to Randfontein N1, R59, N12 PWV 18, Access to terminal, Upgrade and additional lanes to R54 and R28 Market Vereeniging, Vanderbijlpark Free state, Cape provinces Randfontein, Potchefstroom R28, N12 Access to terminal, upgrade R28 Market Randfontein, Krugersdorp North West Botswana City Deep & Kaserne 2 x Container rail terminals o Transnet land o Rail terminal & equipment o Stacking capacity o Warehousing o Truck stop/truck staging facility o Upgrade Kazerne yard capacity o Increase capacity from Rietvallei to Kaserne yard M2 East, N17, M1, N3, N1 Market Southern and western CBD Re-design internal road system to City deep and Kaserne ITMP25 Final Report 28

32 Table 5.2 gives an indication of infrastructure improvements required on the freight bypass and Natal main line to transport the future growth. Table 5.2: New Rail Infrastructure Rail and Rail Terminals Infrastructure Tambo Springs 100 wagon staging yard 50 wagon rail terminals Handling Equipment Sentrarand 100 wagon staging yard 50 wagon rail terminals Handling Equipment Pyramid 100 wagon staging yard 50 wagon rail terminals Handling Equipment Ring rail Upgrade existing rail infrastructure to accommodate 100 wagon container trains Upgrade signal system Double sections of line Upgrade OHTE Link to City Deep Increase line capacity (Rietvallei to Kaserne yard) Upgrade signal system Upgrade Kaserne yard to accommodate 100 wagon trains Natal Main line Increase capacity on the line Upgrade line to accommodate 100 wagon trains Upgrade signal system Upgrade OHTE Houtheuwel to Skansdam New freight rail link West Rand terminal Access line to terminals Vaal terminal 50 wagon rail terminals Handling Equipment 6 STRATEGIES The freight transport system is influenced not only by policy measures, but also by exogenous factors, or driving forces. When making policy and monitoring policy, it is important to be aware of the following forces: Population growth( It is expected that Gauteng will grow by approximate 8 million in the next 25 years); GDP growth: leading to increased demand for goods and transport services; Trade import export: changes in international trade affect freight transport flows; Sectorial composition of domestic economic growth; Reduction in the costs for production and distribution, caused by economies of scale, location advantages and warehousing; Rules and regulations made by other government departments or internationally determined may affect trade flows, an example is safety standards in international air freight; ITMP25 Final Report 29

33 Reduction in logistic costs of freight transport, including risks and reliability; Reduction in externality cost; Trends in demand and supply; Socio-economic trends such as higher incomes and changing lifestyles Given the potential population and economic growth of Gauteng in the next 25 years a strategy needs to be developed to accommodate the increasing volumes of freight flowing into Gauteng but also shipped to the ports, SADC and surrounding area. The strategy includes the following key points: Establish a freight bypass road and rail capacity on the periphery of Gauteng; Establish mechanisms to ensure the move of freight from road to rail; Establish the required intermodal infrastructure to support the freight bypass concept; Limit heavy freight vehicles (5 and more axles) into the Gauteng CBDs; Road freight bypass must be able to support abnormal loads (Super corridors); Establish sufficient public transport capacity at freight intermodal facilities; Overload control at intermodal facilities; Externality cost (Rail vs Road). Each of the above key point of departure will be discussed in more detail. 6.1 Establish a Freight Bypass Road and Rail Capacity on the Periphery of Gauteng Transnet must establish highly efficient intermodal terminals on the periphery of Gauteng. These terminals must be able to accommodate container and palletized traffic. Containers will move from the ports and SADC to the terminals where it will be stuffed and de-stuffed for distribution into the Gauteng CBD. Each terminal requires stacking capacity for loaded and empty containers, warehousing and other value added services. In support to the freight bypass rail system, a freight bypass road is required with access to these terminals. The freight bypass road will need to be designed to accommodate the heavy vehicles and abnormal loads while the feeder roads and the freeway network in the CBD will carry commuter vehicles, public transport vehicles and heavy vehicles with less than 5 axles. This concept will enable heavy freight vehicles to use the freight bypass road network as far as possible. This alone will not ensure that freight operators will start using the terminals or freight bypass network. To facilitate the move of road based freight to rail based freight, specific mechanisms are required as discussed in Section The strategy is to pull freight from the CBDs in smaller vehicles (less than 5 axles) to the terminals on the periphery to be packed or unpacked at the terminal and transported in containers or as palletized freight from the terminals to the ports or ITMP25 Final Report 30

34 SADC, preferably by train and/or by 5 and more axle vehicles. It is proven that rail has a competitive advantage beyond 400 kilometres in general. One of the biggest benefits of the freight bypass road is that heavy vehicles will be able to move from the N12 and N1 on the southern side of Gauteng on the freight bypass to Polokwane, Mpumalanga and North West and vice versa. 6.2 Establish Mechanisms to Ensure the Move of Freight from Road to Rail The key mechanisms to move bulk and long distance freight from a road based transport system to a rail based mode of transport are: Transnet needs to upgrade the rail network to ensure a predictable rail service Implementation of a track and trace system to monitor consignments (containers/pallets) The introduction of differential tolling or other road pricing mechanism that encourages the very long heavy vehicles that don t need to enter the urban core, to rather use the road freight bypass road. Heavy vehicle (Class 5) tolls would need to be made more expensive on freeways closer to the CBDs (N1, N3, R21, R59, N12, N4). A permit system could be introduced for 5 and more axle vehicles that need to use the internal network (using ITS and technology), but this may be logistically difficult to achieve and care should be taken to ensure costs are not increased to such an extent that the end product is more expense. A Transport regulator or entity: o to ensure economic efficiency; o to develop financing structures for strategic infrastructure(bbbee, PPPs, treasury, Private); o Incentives to develop at the terminals; o to ensure improved operational integration of transport systems, inland ports and seaports; o to improve processes at borders; o to reduce externality cost It is foreseen that once the road and rail network are well established, industrial development will take place around the intermodal terminals. Small logistic hubs of facilities will developed around the new network as is currently the case with the N3, N1 through Midrand and Marlboro area. The new generation distribution centres for MassMart, Shoprite Checkers, Spar, etc. will migrate to the freight bypass. When existing terminals or facilities relocate to the mega terminals, that land will become available for residential or other development. ITMP25 Final Report 31

35 6.3 Establish the Required Intermodal Infrastructure to Support the Freight Bypass Concept The strategy adopted in developing the intermodal facilities must lower the logistic cost of the total supply chain. The cycle time of containers at the terminal must be benchmarked and measured against international practises. The infrastructure includes rail terminals, stacking facilities, warehousing, a bonded area for imports and exports, SARS offices, Call centre, truck stop facilities and truck staging facilities and overnight facilities, medical facilities and shopping facilities. 6.4 Road Freight Bypass must be able to Support Abnormal Loads In establishing the freight bypass road concept, Gauteng has the opportunity to design the road infrastructure to accommodate abnormal roads. Currently these loads are transported through the CBD and causes disruptions in the flow of traffic. The design could include the following parameters such as: Eskom distribution lines should be higher when crossing the proposed roads; Clearance under bridges could be higher or gradient of on and off ramp at intersection lower to accommodate abnormal vehicles; Left lane wider for heavy vehicles; Freight lane for heavy vehicles. 6.5 Establish Sufficient Public Transport Capacity at Freight Intermodal Facilities The intermodal terminals and subsequent industrial development around the terminals will result in job opportunities. The labour force to those developments requires sufficient public transport capacity and facilities. The public transport facilities could include taxi ranks, bus facilities and even train facilities. The public transport roads needs to be integrated into the wider public transport network of Gauteng. 6.6 Overload control at intermodal facilities Gauteng is essentially the hub of economic activity in South Africa and a large percentage of road freight enters and leaves the province. Because of the nature of the road network in Gauteng, there are numerous alternative routes. Overload control in most cases therefore have to take place on an area as well as a corridor basis. Although particular routes and corridors could be identified as the major heavy vehicle routes in Gauteng, heavy vehicle traffic patterns would change substantially as soon as overload control is implemented on certain routes. Experience has shown that overload control on a single route is largely ineffective unless alternative routes are monitored as well. Typically, when a weighing exercise ITMP25 Final Report 32

36 commences, heavy truck drivers, with the aid of long distance radios and cellular phones, select alternative routes. This is done in order to avoid the operational weighbridge and implications associate therewith. In Gauteng, it is especially difficult to control all possible routes because of the large number of available routes in the province. (a) Existing weighbridges There are currently 19 weighbridges in Gauteng. Two of these are operated by SANRAL, four are provincial weighbridges, twelve are municipal weighbridges and one is a private weighbridge that is used for law enforcement purposes. The two weighbridges operated by SANRAL, namely the Heidelberg TCC on the N3 and the Donkerhoek TCC on the N4 are operated on a continuous basis. In excess of vehicles are weighed at the Heidelberg TCC per annum, while in excess of vehicles are weighed at the Donkerhoek TCC per annum. The four provincial weighbridges are operated on an ad-hoc basis. Three of these were computerised in 2010, but very little weighing is currently taking place. The fourth provincial weighbridge is located at the Boekenhoutkloof Traffic Training College and is mostly used for training purposes. The municipal weighbridges are all located at vehicle testing stations and are mostly used for tare weighing for vehicle registration purposes, although most of them could be used for law enforcement purposes as well. The private weighbridge is located just off the N1 at the Wallmannsthal interchange north of Pretoria. This weighbridge is utilised by both provincial and metropolitan (Tshwane) traffic officers for overload law enforcement. (b) Gauteng Overload Control Strategy An overload control strategy was prepared for the Gauteng Department of Transport and Public Works by the CSIR in 2000 and was updated in In this strategy seven major corridors for the movement of heavy vehicles were identified as indicated in Table 6.1. ITMP25 Final Report 33

37 Table 6.1: Corridors for the movement of Heavy Vehicles. Route Location N3/R23 Johannesburg Durban N4/N12 Pretoria/East to Rand/JHB Nelspruit/Maputo N1/R103 Pretoria/Johannesburg to Pietersburg/Beitbridge N4/R514 Pretoria/Johannesburg to Rustenburg/Botswana N12/N14/R501 Johannesburg to Potchefstroom/Kimberley/Namibia N1/R59 Johannesburg to Bloemfontein/Cape Town With the development of the inland terminals, dynamic and static weighbridges will be installed. A dynamic system can be installed en route and tested at the planned terminals. To increase the safety on the proposed freight bypass road, intelligent traffic systems would be required which indicate actively to the road users what the road speed limits are, where roads works affects traffic and which lanes can be used by heavy vehicles, including electronic signboards which indicate the speed of the vehicle if speeding. It is therefore recommended that each intermodal facility must have the following capability: to weigh heavy vehicles dynamically and statically; to test heavy vehicles for road worthiness; to test drivers for fatigue; to issue permits for abnormal loads; to issue permits for the transport of hazardous materials; It is further recommended that legislation be put in practice that penalises or even liquidate operators who are constantly in default. ITMP25 Final Report 34

38 6.7 Externality cost The strategy is to reduce externality cost in the long term by moving from a road based to a rail based freight transport system for longer distance and bulk freight into and out of Gauteng. Table 6.2 indicates the different types of externality costs for the different modes of transport. The two most prominent contributors to road externality cost are accident cost and emission cost, versus emission cost on rail. Table 6.2: Externality cost per mode of transport Road externality costs Cost 9c/ton.km Rail externality costs Cost (c/ton.km) Accident cost Accident cost Emission cost Emission cost Congestion cost Noise Noise Land use Policing From Table 6.2 it is clear that there is a factor difference between the externality costs of road versus rail. Furthermore, long heavy vehicles are one of the main contributors to congestion on freeways and in the respective CBDs, and incidents involving heavy vehicles often create a bigger impact. Discouraging long heavy vehicles from entering the CBDs and core urban area will result in a reduction of incidents and congestion cost. Congestion has a direct impact on the transport logistic cost in general, due to the longer cycle time of the vehicle and additional maintenance and fuel costs. Figure 6.1 illustrates the contribution of externalities of surface transport in South Africa. The Western Cape, Gauteng, Mpumalanga and Kwazulu-Natal (KZN) are responsible for more than 60% of the total transport cost in South Africa. The biggest contribution to externality cost could be Gauteng, Mpumalanga and KZN which carries the bulk of the long heavy vehicles. Figure 6.1 depicts the externality cost from 2010 to 2012 while Figure 6.1 illustrates the emission costs. ITMP25 Final Report 35

39 Figure 6.1: Externality cost for 2010, 2011 and 2012 Source: 9 th State of Logistic Survey for South Africa 2012 Freight is moving mainly on road from Gauteng to KZN and Gauteng to Cape Town. Significant saving in accident and emission cost could be achieved if more freight could move from road to rail. Figure 6.2 illustrates the emission cost for South Africa in Figure 6.2: Estimate emissions cost for 2012 Source: 9 th State of Logistic Survey for South Africa 2012 In summary externality cost remains one of the key contributors to South Africa s economy. Externality cost is not tangible but the cumulative savings could potentially pay for some of the proposed road infrastructure. ITMP25 Final Report 36

40 7 SUPPORT OF ITPM25 FOUNDING PRINCIPLES The project complies with the following founding principles as indicated in Table 7.1. Table 7.1: Founding principles Integration Freight road and rail ring Sustainability Intermodal hubs in ring; Ring road and rail system; Change to a rail based transport system; Freight bypass road design makes provision for abnormal loads; Truck stop and truck staging facilities at terminals. Doing things more smartly Deviate heavy vehicles to periphery; Smart technology to control heavy vehicles on freight roads; 5 and more axle vehicles limited to freight terminals; Dynamic in-motion weighing and static weighing of heavy vehicles; Stuffing and de-stuffing containers at intermodal terminals and hubs; Freight information system at terminals; Customs control at terminals Fatigue test on drivers at terminals. Legislation Different user pay mechanisms for freight roads and public roads; Transport regulator; Penalties/ constraint order on operators who are continuously overload heavy vehicles; Issue permits for abnormal loads and hazardous products at terminals; ITMP25 Final Report 37