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Coal-line export-channel expansion programme, South Africa

12th September 2014

  

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Name and Location
Coal-line export-channel expansion programme, South Africa.

Client
Transnet Freight Rail (TFR).

Project Description
TFR is expanding its coal export channel, which links the coalfields of Mpumalanga and the Waterberg, in Limpopo, to markets in Europe and Asia by increasing initial capacity on the corridor to 81-million tons a year and thereafter to 97.5-million tons a year. Tenders for a prefeasibility study to increase the capacity to 97.5-million tons a year will be issued in the near future to confirm the expansionary and sustaining investments.

The programme combines investments in new infrastructure and rolling stock, most notably a comprehensive dual-voltage locomotive acquisition programme.

The current infrastructure construction programme for the expansion to 81-million includes various sustaining investments and the upgrade of four yards at Blackhill, Saaiwater, Ermelo and Vryheid, 11 substations, five new substations and two locomotive workshops upgrades, with a new locomotive turntable at Richards Bay.

The work packages are being executed using a combination of internal resources and external design and supply contracts.

TFR has also brought forward the engineering and design work on the Overvaal second tunnel, owing to the operational challenges and risk associated with the single-line tunnel between Ermelo and Richards Bay. The tender for the feasibility study for the Overvaal tunnel has been awarded.

Value
The total expansion and sustaining capital investment for the coal and mineral system programme is estimated at R45.5-billion over the next seven-year period of Transnet’s Market Demand Strategy.

Duration
Not stated.

Latest developments
Final designs to expand capacity to 81-million tons are nearing completion and several work packages are under way.

The land acquisition process is well under way to enable construction of substations on privately-owned land. Negotiations with Eskom are in progress to ensure that the upgrading of the electrical supply between Ermelo and Richards Bay is completed on time.

The project is expected to be completed by the 2018 financial year.

Meanwhile, all 110 Class 19E dual-voltage locomotives have been delivered and accepted into operations. This will assist with the planned expansion of the coal line to 81-million tons.

Further, Transnet concluded a contract for the supply of 100 additional electric dual voltage locomotives in March this year.

The locomotives are destined for the export coal line and will enable some of the existing coal line locomotives to be cascaded to the general freight business.

Key Contracts and Suppliers
Coal export channel expansion to 81-million tons (internal resource strategy).
Overvaal tunnel doubling – call for feasibility tenders in 2014/15.
Coal export channel expansion to 97.5-million tons – call for prefeasibility tenders in 2014/15.

On Budget and on Time?
Not stated.

Contact Details for Project Information
TFR corporate affairs Mike Asefovitz, tel +27 11 544 9585 or email Mike.Asefovitz@transnet.net.

Edited by Creamer Media Reporter

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