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Iron-ore export channel expansion, South Africa

19th September 2014

  

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

Client
Transnet Freight Rail (TFR), Transnet Port Terminals (TPT), Transnet National Port Authority (TNPA), Kumba Iron Ore and Assmang, a joint venture between African Rainbow Minerals, 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, starting with an incremental phase that will ramp up capacity to 71-million tons by 2022, 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 aims 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 eventual expansion to 82.5-million tons a year.

Value
The estimated cost to provide capacity to 71-million tons a year on the iron-ore line is estimated at R13-billion, apportioned to TFR, TPT and TNPA expansion asset requirements.

Duration
Not stated.

Latest Developments
Phase 1A to C to increase the iron-ore line capacity to 60-million tons a year is complete.

The prefeasibility study to expand the channel’s capacity is in progress. The business case is undergoing a detailed validation process from a commercial, technical and economic perspective.

Phase 1D, being the addition of a third tippler and associated rail works, has been approved by the Transnet board for an estimated R1.6-billion. The third tippler will ensure that 60-million tons can be exported on a sustainable basis as the two existing tipplers currently do not allow for any downtime.

Further, the existing tipplers need to undergo their midlife and end-of-life refurbishments, and the third tippler makes it possible to execute TPT’s equipment refurbishment programme.

Meanwhile, all 32 locomotives required to increase iron-ore capacity to 60-million tons a year have been tested and were accepted into operations by December 2013.

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); 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?
The prefeasibility phase to ramp up to 71-million tonnes a year is in progress and on schedule. It is expected that the feasibility for this phase will begin by the end of the first quarter of 2015.

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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