Ipad Presentation: TFR Operation in SADC Countries

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1 Ipad Presentation: TFR Operation in SADC Countries

2 Presentation Layout Overview of Transnet Freight Rail Role Played in SADC Infrastructure & Transport Challenges Elements of Vision 2025 Strategy Benefit Critical Success factor Conclusion 2

3 Under our new organisational structure, Spoornet has been renamed Transnet Freight Rail 3

4 Transnet Freight Rail s Position within the World Country Network Km Activity United States Russia China India Canada Germany Au stralia Argentina France Brazil Poland Japan Ukraine South Africa Mexico Italy United Kingdom 194,731 km mainline routes 87,157 km 71,600 km 63,518 km (15,009 km electrified) 49,422 km 45,514 km (21,000 km electrified) 41,588 km (4,612 km electrified) 34,463 km (168 km electrified) 32,682 km 31,543 km (1,981 km electrified) 23,420 km 23,168 km (15,995 km electrified) 22,473 km 20,824 km (9, 57 0 km electrified) 19,510 km 19,493 km 16,893 km 4

5 Transnet Freight Rail s Position within Africa Country Network Km Activity 80% of SADC route kilometres South Africa Sudan Egypt DRC Algeria Tanzania Nigeria Mozambique Zimbabwe Kenya Angola Namibia Zambia Tunisia Morocco Uganda 20,824 km 5,978 km 5,105 km 4,772 km 3,973 km 3,690 km 3,557 km 3,123 km 3,077 km 2,778 km 2,761 km 2,382 km 2,173 km 2,152 km 1,907 km 1,241 km Guinea 1,115 km 5

6 Who is TFR Transnet Freight Rail: Owns and maintains a network of route km ( track km) connected to ports and the rail networks of neighbouring countries Operates trains per day (substantially less than the average over weekends) Serves 450 key accounts Conveys 98 commodity groups over more than origin destination combinations Transports 3.5 4mt per week 178 million tons pa Employees Locomotives Wagons 6

7 TFR: Market Sectors Export Mining Manufacturing Coal Iron Ore Chemicals Fuel & Petroleum Fertilizer Cement & Lime Iron Steel & Scrap Mining Manganese Non-Ferrous Mineral Mining Coal Granite Chrome Grain, Stockfeed & Milling Timber & related FMCG Containers Automotive Industrial Containers & Automotive Agriculture & Forestry 7

8 Collaboration between South, India and France The new Union Of International Railways Regional organization AFRICA NORTH AMERICA LATIN AMERICA ASIA EUROPE MIDDLE EAST TFR is a member of UIC-Africa Satellite office has just moved from SA to Tunisia end of

9 Regional Involvement: SARA, COMESA The alignment / integration of UIC with other organisations like SARA which TFR is a member of will bring more value to many SADC members. The strategy going forward must work towards encouraging the alignment, the net effect to TFR and the region will be the improvement of volume growth and capabilities to move it. 9

10 Corridors important Union of African Railways initiatives i Main Corridors (Les grands corridors) Source: UAR,2001 ix vi vii 1 2 x iii v1 Corridors: i: Corridor North ii: Corridor North -East iii: Corridor North -East- West - v2 3 ii iv: Corridor East-South v1: Corridor East -Center v2: Corridor East-Center vi: Corridor West-Center vii: Corridor South West viii: Corridor Center-South viii iv Ix: Corridor North-West X: Corridor North -Center-South Legends Railways No railways Radials: 1: Libya-Namibia 2: Senegal-Djibouti - 3: (Sudan) Ethiopia-R.O.C./Tanzania Transportutvikling AS September

11 Elements of an Africa 2025 Transport Vision: More Rail for Africa Market Adaptation Skills Development Investment Vision 2025 Regional Inter- connectivity Operational Efficiency Policy Frameworks Private sector participation Modal Co-operation operation 11

12 SADAC Benefit from Vision 2025 Rail Industry Environment Reliable, Safe, Sustainable Scheduled Railway Point to Point Service Delivery No frills, Low Cost and Efficient Focus on chosen corridors (SA and SADC) Enable Multiple Rail Operators Enable Feeder Line Concessions Relinquish marginal lines Efficiency Performance 12

13 Malaw i Strategic Rail corridors in SADC 60% of Mineral Deposits in Southern Africa Democratic Republic of Congo United Republic of Tanzania East-West Connectivity Angola Namibia Zambia Botswana Zimbabwe Mozambique SADAC must focuses on integration of strategic corridors through integrated rail operations with Southern African Railways to maximise Infrastructure Madagascar Swaziland South Africa Strategic Corridors 13

14 Malaw i SADC Growth GDP Growth ; Corridor Market GDP Growth ; Corridor Market Sulphuric Acid, Diesel, Copper & Sugar GDP Growth ; Corridor Market Cement, Petrol, Diesel, & Sodium Carbonite GDP Growth ; Corridor Market Zinc, Cement & Maize GDP Growth ; Angola Namibia Democratic Republic of Congo Zambia Botswana South Africa Zimbabwe United Republic of Tanzania Mocambique Swaziland GDP Growth ; Corridor Market Copper, Sulphur & Diesel GDP Growth ; Corridor Market Containers Mauritius GDP Growth ; Corridor Market GDP Growth ; Corridor Market Coal, Sugar & Maize GDP Growth ; Corridor Market Ferrochrome, Coke, granite, Petrol & Diesel GDP Growth ; Corridor Market Anthracite, Pulpwood 14

15 In Africa- Rail is a strategic resource Provides time and place utility Lever for competitiveness Lever for economic growth & development Lever to connect industrial heartlands to global trade Rail is the transport backbone Freight cost as a % of total import value: 8.8% for developing countries, 5.2% for industrial countries (UNCTAD 2002) USE IT WELL At a sub-regional level West Africa: 14% East & Southern Africa: 15.2% North Africa: 11% 15

16 Global Customer Requirements for Rail Heightened pressure for world-class competitiveness Efficient rail is a competitive advantage for customers to get product to market 5 R s of Rail: Right Place Right Time Right Quantity Right Cost Right Condition Rail is an integral part of the total supply chain rail operators in Africa must think outside the rail box 16

17 Rail / Road and Port Issues Traffic Congestion around ports Missing links or connectivity Poor trade partnership Lack of Connectivity and integration with Ports Lack of funds in financing Poor infrastructure and Rolling stock Lack of human development 17

18 Transit corridors can be important, not only for transit Developing the hinterland 18

19 Drivers of Rail freight growth Connectivity Standardize applications and platforms Foster many-to-many collaboration Enable trade exchange Execution Improve transportation, distribution, inventory, and order management Expedite financial settlements Measure performance results Collaboration Share real-time data with key customers, suppliers and partners Align individuals and organizations Standardize processes and practices Rail Freight Growth Optimization Implement new tools and processes Eliminate inefficiencies Leverage cost savings across communities Speed Increase responsiveness Improve adaptability Access information in real time Visibility Track inventory flow Update order status in real tim Manage incidents 19

20 Rail has a role in Creating a Seamless Supply Chain A system of integrating logistics players and customers through a seamless process supported by a common technology platform Customer Off loa ds Loaded Truck Empty Truck Rail Terminal Train Offloads at port Goods Loaded on Wagons & Departs Port Rail Customs Truck Depot Cargo on Vessel Seamless process Common Technology Platform 20

21 Critical Success Factors Relationships with transport partners Readiness to form joint venture Involvement all key stakeholders Communication and sharing of information Joint opportunity identification Dedicated project and team members. 21

22 Conclusion Collaboration between rail/road Development, Attraction and Retention of Skills Infrastructure investment Sara Rail Conference: Gallagher Estate More information: 22

23 Thank You