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Iron-ore export channel expansion, South Africa

21st March 2014

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

  

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Name and Location
Iron-ore export channel expansion, Northern Cape and Western Cape, South Africa.

Client
Transnet Freight Rail (TFR), Kumba Iron Ore and Assmang, a joint venture between African Rainbow Minerals and Assore and several emerging mining companies, such as DIro and Sedibeng.

Project Description
The iron-ore line is the main export channel for iron-ore from the mines in the Northern Cape to the Port of Saldanha.

Rail capacity was increased to 60-million tons a year and port export capacity to 58.5-million tons a year over the quay wall, resulting in targeted export iron-ore volumes increasing to 59.5-million tons a year in 2014.

The execution of Transnet’s Market Demand Strategy could result in the channel capacity eventually increasing to 82.5-million tons beyond the 2020 financial year, in line with industry demand.

The rail upgrade plans to 60-million tons a year included an increase in rolling stock (wagons and locomotives), the upgrading of electricity infrastructure, the construction of additional train passing loops and a 32 km rail link to service the new Sishen South mine.

The inclusion of new locomotives is part of Transnet’s fleet renewal programme, which is intended to improve efficiency, productivity, reliability and safety.

Infrastructure at the bulk terminal at the Port of Saldanha currently comprises two rotary tandem tipplers, four stacker reclaimers, two shiploaders and 25 conveying systems, providing the terminal with the capacity to offload 10 000 t/h onto a ship. However, it is expected that new infrastructure, including a dedicated iron-ore berth will be required to accommodate the expansion to 82.5-million tons a year.

Value
The expected escalated cost to increase capacity to 82.5-million tons a year on the iron-ore line is estimated at R19.3-billion.

Duration
Not stated.

Latest Developments
Phase 1 expansion to 60-million tons a year has been completed and the capacity is available. The project is currently in the close-out phase.

Phase 2, which is the planned capacity expansion to a possible maximum of 82.5-million tons a year, is currently in the prefeasibility stage and will progress to the feasibility stage during 2014.

The rail replacement programme has been executed as planned, with 302 km of track replaced. This has contributed to a reduction of more than 60% in rail breaks, compared with the previous year.

Infrastructure upgrades have also included the replacement of 51 243 sleepers and 67 km of ballast screening.

Rail stress management will continue and all thermite welds will be X-rayed for defects. Thermite welds older than eight years will be removed and replaced as a precautionary measure.

Key Contracts and Suppliers
SHE Cape Environmental (environmental-impact assessment study); Concor Roads & Earthworks (earthworks, trackworks, overhead track equipment and drainage), Wilson Bayly Holmes-Ovcon (WBHO), Lennings Rail Services and Racec (primary contractors); DCD-Dorbyl's rolling stock division, or RSD (three-axle bogies); Infraset Railway Products (precast concrete sleepers); and Rocla, subcontracted by Concor (railway line pipes, culverts and signal boxes); Venus Railways Solutions, a subsidiary of Mitsui & Co (electric locomotives main contractor); Toshiba Corporation (electrical equipment and technical support for electric locomotives) and Union Carriage and Wagon, or UCW (manufacturing and assembling of electric locomotives).

On Budget and on Time?
Phase 2 has not started yet.

Contact Details for Project Information
TFR corporate affairs Mike Asefovitz, tel +27 11 544 9585 or email Mike.Asefovitz@transnet.net.
Concor Roads & Earthworks, tel +27 11 495 2222 or fax +27 11 495 2496.
Infraset Railway Products, tel +27 11 813 2340.
Lennings Rail Services, tel +27 11 898 6800, fax +27 11 914 4780/4781 or email enquiries@lennings.co.za.
Mitsui & Co corporate communications, tel +81 3 3285 7596 or fax +91 3 3285 9819.
Racec, tel +27 21 531 7540.
Rocla, tel +27 11 670 7600, fax +27 11 472 2141 or email info@rocla.co.za.
SHE Cape Environmental, tel +27 21 200 8581, fax +27 86 548 2260 or email info@shecape.co.za.
UCW, tel +27 11 814 4411 or +27 11 814 5456, fax +27 11 814 5156 or email info@ucw.co.za.
WBHO, tel +27 11 321 7220 or fax +27 11 887 4364.

Edited by Creamer Media Reporter

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